| Life Assurance
has evolved over many years into a complex
and efficient vehicle for investment and tax planning.
This site, however concerns itself mainly with the basic reasons for the purchase of life
assurance: |
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Protection of dependents from financial
hardship in the event of your premature death. This
is not just confined to a relationship of parent and child but
could also involve financially dependent elderly and infirm
relatives, not to mention business
relationships including keyman
assurance and partnership/director
assurance. |
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To repay a loan. This could be a
long term mortgage or short term business
advance. |
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Replacement of existing policies.
Especially since the advancement of medical science; a
perceived decrease in the threat of AIDS
coupled with increased competition; life assurance companies
have recently begun to reduce rates to attract new business.
Where a policy is one of providing protection only and has no
investment content - it may be very worthwhile considering
alternative contracts. |
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Inheritance Tax (IHT) mitigation.
A policy written into a trust can provide a simple device in
combating the effect of taxation upon estates. In combination
with sound planning it can ensure that IHT remains largely a
"voluntary tax". |
