Money matters

We worry that our luggage might go missing on holiday or that our house might be broken into, so we take out insurance to protect against the financial impact of these things happening. But few people insure what is really important to them, their family.

Most people who buy protection buy just enough to pay off their mortgage if they die. But is this really enough? The mortgage is only one of the many financial commitments we have. How would your family maintain their current lifestyle or even pay the monthly bills without your salary? Having the right protection in place can take away the financial strain.

None of us likes to think about the worst happening but unfortunately it does and that’s why choosing the right amount and type of protection is important. It’s also important to make sure the money is paid to the right people at the right time. If you’ve already considered your protection needs, are you sure that your family will be the beneficiaries if you die?

Distributing your estate can be a lengthy process and can take several months. In the meantime, your family could be suffering financial hardship following your death. For a grieving family who are struggling emotionally, this is a burden they shouldn’t have to bear.

So why not consider putting your protection plan in trust?

A trust is a way of choosing who will receive the benefit of your protection plan without giving them full and immediate control over it. It will also make the proceeds available quickly, when they are needed the most.

Quite simply, by writing a protection plan in trust, you can make sure the money from your plan is paid to your family without delay. Not only that, having your protection plan in trust means that your benefit would be outside of your estate and would no longer be subject to inheritance tax.

Speak to your adviser today to make sure your family really are protected.

If you have any queries relating to this article or any aspect of your finances, contact Ronan on 3883 2233 or email on [email protected]