Clive Evans IFA and Life Assurance

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Life Assurance

Have you covered all the angles?  Personal Insurance...the reality.

Many of you will have become familiar with the financial planning mantra we have used to focus yachtsman on their financial goals over the last ten years:

Where am I now?

Where do I want to be and when?

What’s the best way to get from here to there?

2002/2003 have been turbulent years, not only for the financial markets, but also for the yachting industry on which you, our clients depend.

In such times, the crucial question is:

What could go wrong?

In other words, should disaster strike, will both you and your family survive financially, whatever happens to the markets? Ask yourself the following questions NOW.

• When was the last time you reviewed your life assurance cover?
   
• Does it include critical illness benefit, meaning that it will pay the full amount in the event of you NOT dying, but being diagnosed with cancer, heart attack or stroke?
   
• If you are in a partnership, is your partner also covered?
   
• How would you be able to continue to work if anything was to happen to them?

You think it can’t happen to you?  Consider, in an average year in the UK alone:

• Over 150,000 men will have their first heart attack – over 50% will still be alive one year later
.
 
• Almost 250,0000 people are diagnosed as having some form of cancer every year – nearly 40% of these sufferers will survive for at least five years
.
 
• At least 120.000 men and women will suffer a stroke every year – 70% of them will still be alive one year later.

 
• For males aged 30 the possibility of suffering a critical illness before 65 is 1.5 times greater than the probability of dying. For females the probability is twice as great.

If it happens to you, and it clearly will to some of you out there, what steps can you take to alleviate the financial problem that will be the inevitable result?

• Life Assurance will pay out a capital sum on death, which can be used to clear a loan, mortgage etc., but most importantly, can be invested to provide an income for your dependants. Clearly you aren’t going to be able to provide any further income if you’re dead!
   
• Critical Illness Assurance will pay a capital sum on the diagnosis of a critical illness [e.g. Cancer, Heart Attack, Stroke, Kidney Failure, etc., including loss of sight and loss of hearing, and total and permanent disability]
  Once again this can be used to clear a loan or mortgage or to provide an income for you and your dependants.

We all know at least someone who has suffered in this way, as well as the obvious trauma was there also a degree of financial hardship, which could have been averted with proper planning?

Now ask yourself:

• What would I want to happen if I was only given three years to live?
   
• If anything happened to me, how much would my family need to carry on their lives the way we planned?

It’s clear that money will not buy your health or your life back, but it will clearly be needed.

The amount of cover is something you need to work out with your financial advisor; the minimum required in our experience is at least USD 250,000.

Clearly, a couple should also consider the effect of death or serious illness of either partner, and make contingency plans accordingly, not just covering the major income earner but recognising the fact that if mother dies or gets sick, who is going to look after the children?

These plans can be remarkably cost effective, and can even be structured to return your premiums plus a cash bonus should they no longer be required [usually at around the twenty year point].

The monthly rate for USD 250,000 life and critical illness cover for a couple aged 35 and 30 for this type of contract will be just USD 236. Peace of mind for less than USD 8 per day, with your money back after twenty years if you don’t want it anymore!

One point worth emphasising, both life assurance and critical illness premium rates are determined by your age and fitness at outset: once you have a contract….….the rate you pay is fixed………….for as long as you have it.

Your fitness is usually checked by a medical examination [at the insurer’s expense], we have now underwritten yachtsmen [and have examiners] in all the major yachting bases…………..and the insurers we use really understand what you actually do!

Application Forms

The following application forms are in Adobe Acrobat format, and can be downloaded and printed.

  Friends Provident Level Term Assurance Application form

  Zurich Futura Application form

 

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Call or email Clive Evans IFA : Tel no:+33 4 93 34 36 00 or email: contact@clive-evans-ifa.com

 
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