CHRISTMAS OFFER Subscribe to Hertfordshire Life today CLICK HERE

How to protect your family’s future

PUBLISHED: 16:51 01 June 2016 | UPDATED: 15:56 06 June 2016

Take care of your family

Take care of your family

Giorgio Magini

A sudden disease. An accident at work. A young, reckless drunk driver. There are, sadly, countless reasons why a family might lose its breadwinner - its main source of income.

During a dark and difficult time it can be tough to think about the financial safety of your family and protecting their future. But it’s an important conversation to have.

Fortunately this concern can be easily prevented with a little bit of forward planning, in the form of life insurance.

You can’t rely on the government to take care of your family – the money they would get from the state is much lower than you’d probably expect. If you want to provide for your family financially if you die, life insurance is a must.

Life insurance can pay your dependents money as a lump sum or as regular payments if you die. It is designed to provide you with the reassurance that your dependents will be looked after if you’re no longer there to provide.

The amount of money paid out depends on the level of cover you buy. You can also decide how it is paid out and whether it will cover specific payments, such as a mortgage.

If you have dependents – such as school age children, a partner who relies on your income or a family living in a house with a mortgage that you pay – a life insurance policy can provide for them if you die.

No matter the size of your family and the number of your dependents, there are different plans to suit every situation, beginning with four main life insurance plans.

Term assurance is the most common type of life insurance bought in the UK, which is typically used for family and/or mortgage protection. A term and an amount of cover are chosen, which stay the same until a claim is made or the policy ends. Premiums typically remain fixed during the policy term, and the sum assured is paid out as a lump sum.

KDW Financial PlanningKDW Financial Planning

Critical illness insurance is a long-term insurance policy to cover specific serious illnesses listed within a policy. Should the worst happen, it gives a tax-free ‘lump sum’ – a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.

Relevant life policies are stand-alone ‘single life’ plans that are potentially suitable for any employee. It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured.

Perhaps the most underrated of all protection products, Family Income Benefit pays a tax-free income instead of lump sum. Premiums are comparably low as claims could occur towards the final years of a policy, meaning that just a few years of income are paid. However, should a claim arise early, when the money is really needed, the policy can be incredibly good value for money, such as in cases of families where dependents may suffer financially if the breadwinner dies.

If this is all seems a little overwhelming, it doesn’t have to be. Financial planners like KDW specialise in advising people on the best policies that will ensure financial security in the event of them developing a critical illness or passing away. Much like grief itself, financial planning is never something that people should – or indeed have to – do alone.

The cost of life insurance policies will vary based on the age and health of the policy holder. A Level Term Life Assurance policy for a 35 year old female non-smoker covering her to age 65 for £500,000 with guaranteed premiums would cost from £29.95pcm

For more information about financial planning contact KDW on 01727 852299 or visit


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other Hertfordshire visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Hertfordshire staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Hertfordshire account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from People


Putting the spotlight on retailers whose business is an important part of the community.

Read more
Friday, November 16, 2018

Escape to the Chateau star Angel Adoree is currently reaping the benefits of her incredible vision and drive to build an overseas wedding and lifestyle business from scratch with husband Dick Strawbridge. Here she tells Essex Life about series five of the hit Channel 4 show and how a strong Essex work ethic helped her dream so big | Words: Denise Marshall

Read more
Friday, November 16, 2018

Spirit Yachts is a Suffolk success story. After 25 years of designing and building luxury vessels sailed all over the world, it has plenty to celebrate | Words: Ross Bentley

Read more
Friday, November 16, 2018

Actor Tom Burke talks to JUDI SPIERS about his production of Don Carlos staged by his own theatre company Ara, in association with Exeter’s Northcott Theatre

Read more
Friday, November 16, 2018

250 years ago this month a baron’s servant smashed down a bedroom door in St Albans’ White Hart Inn to find a prince in bed with his master’s wife. Cue a court case, a delighted press, and much airing of royal underwear

Read more
November 2018
Friday, November 16, 2018

As the Lord Bishop of Norwich, the Right Reverend Graham James, or Bishop Graham to his flock and many friends, prepares to retire, he bids a fond farewell to Norfolk

Read more
November 2018
Friday, November 16, 2018

Piotr Jajszczyk is a master jeweller who works for a 125-year-old Harrogate firm that has made jewellery for kings and presidents.

Read more
Thursday, November 15, 2018

Millennium Care believe in independence and ‘Why not’ when it comes to what helping their residents fulfil dreams.

Read more
Thursday, November 15, 2018

Actor and broadcaster Sushil Chudasama explains why a Blackburn park is so special to him

Read more
Wednesday, November 14, 2018

Graphic artist Chris Gibson is bringing Hampshire’s landmarks in to people’s homes with his nostalgic posters

Read more

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Topics of Interest

Food and Drink Directory

Local Business Directory

Search For a Car In Your Area

Property Search