| These plans are the most cost-effective form of family protection.
Rather than producing a lump sum should you die, the policy produces a regular tax-free income for your dependants for the remainder of the plan term.
This saves cost, tax and a lot of hassle for your family at a tough time.
The amount paid each month can be set to rise with inflation, or to remain level over the plan term.
The only catch is that it is payable for a set number of years from when you start the policy, so for example a claim made in year 18 of a 20 year term will only pay out for two years. That is why it costs less. Most people underinsure because they do not appreciate that you can only get £5,000 out of a £100,000 lump sum after tax.
|
