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  • Top 15 Reasons to get Life Insurance Mar 1, 2018

    Many people do not understand the importance of having life insurance, for one reason or another. Because of this and to stress the importance of having life insurance coverage,

    Here is a list of 15 reasons you should get life insurance:

    1. Protects your family from financial hardship. Some life insurance plans will replace your missing income, allowing your family to live comfortably like they are accustomed to.

    2. Covers your mortgage payments. Some life insurance plans will cover your mortgage payments in the event of your disability or death. This protects your family from losing their home due to inability to make payments.

    3. Covers funeral and burial expenses. The average funeral with a traditional burial can cost as much as £4257 (according to the Royal London National Funeral Cost Index Report 2017) – something many people are unprepared to pay for. If you pass away unexpectedly, life insurance allows your family to pay for the expenses without having to worry or scramble for the money.

    4. Pays off your debt. Life insurance coverage will pay off your debts to relieve your family from taking on your debt. This frees your family of additional financial hardship after your passing.

    5. Covers child support. If you are a parent who pays child support, your life insurance plan can provide money to ensure that your children continually get the money they need to live a safe and happy life.

    6. Provides care for a dependent or loved one. If you have a dependent who required assisted living or has special needs, you can ensure that your loved one will always have access to attention and medical care, even after you are gone.

    7. Your children can still go to college. With life insurance, you can guarantee that there will still be money for your children to go to college, even if you are no longer around to see it. You can protect your children’s future, long after you are gone.

    8. Protect your business. With life insurance, you can protect your business from suffering financial loss or incurring instability in the death of a business owner or partner. Planning for the future of your business can determine the financial state you leave your family and business partner in.

    9. The younger you are, the less expensive it is. When you are younger, life insurance is less expensive than it is later in life, and it is a very affordable option for those who start out early. Because life is unpredictable, it is never too early to get life insurance.

    10. Offers tax-free income for your loved ones. Depending on the type of life insurance you buy, some plans offer tax-free income for your family or beneficiary(s) after your death. This allows them to maximize the amount of money you leave them to put toward their needs.

    11. Money is accessible during your lifetime. Some life insurance plans allow you to access your benefit during your lifetime. Some plans allow you to build and protect your retirement funds during your lifetime, making the money available to you while you are still living. Other plans protect your money until after your death, so there is a plan to meet both needs and lifestyles.

    12. You can leave money to your favourite charity. With life insurance, you can make your favourite charity your beneficiary, allows your money to be donated to a cause you are passionate about. This is a great option for people who want to use their money for the greater good.

    13. Protects your family if you become disabled. Some forms of life insurance will protect your family and your home in the event of your critical illness or disability. This coverage will protect your family from losing their home, a problem that many people face unexpectedly. Life insurance eliminates that worry and protects your family.

    14. Shows your family your love at a time when they need it most. Above all, life insurance offers comfort to your family at a time when they need it most. Planning ahead for them will show your love for them and that you were planning ahead to make sure they are always safe. This will mean so much to them at a time when they are missing you.

    15. Peace of mind for you. At the most basic level, life insurance provides peace of mind for you and allows you to relax, knowing that your family will always have access to the things they need, even if you aren’t physically there to provide them. You will be able to rest assured, knowing your family will not be financially stressed after your passing.

    Planning ahead for your family and loved ones offers many benefits, and life insurance that you can continue to protect and provide for the people you love, even after you are gone.
    Call Shahid, a Financial Adviser at Charles Derby on 07723388009 to have a FREE initial assessment of your needs done and for a competitive insurance quote.
  • How to protect your mortgage? Jul 19, 2017

    Mortgage Protection:

    There are two types of mortgage protections one can look to protect themselves financially:

    1. Mortgage payment protection Insurance

    2. Life Insurance

    1.Mortgage Payment Protection Insurance:


    The objective of mortgage payment protection insurance (MPPI) is to protect a client against their inability to keep up mortgage payments due to accident, sickness or unemployment.


    MPPI pays a monthly benefit if the insured is unable to work for three reasons:


    Accident or disability; or

    Involuntary unemployment


    The maximum benefit is limited to a percentage of salary, a fixed amount (e.g. £1500) or in relation to overall mortgage costs, benefits are not taxable. Benefits are usually payable for up to 12, 18 or 24 months only.

    Why MPPI?

    Many people take out MPPI because:

    • Their mortgage is their most important regular bill.

    • They do not expect any financial problem to last more than a few months.

    • MPPI covers unemployment as well as sickness and accident-unlike most income protection or critical illness cover policies.

    • MPPI is easy to buy because there is usually limited underwriting. This is possible because pre-existing conditions are excluded and the payment period is short.
    2.Life Insurance:

    Objective: To pay out mortgage in the event of death so that dependents do not have to worry about mortgage payments/debts. It’s 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 with no minimum or maximum limit. You decide how it is paid out and whether it will cover specific payments, such as mortgage or rent. Remember, higher the level of cover higher the premium will be

    Why Mortgage life insurance?

    You need life insurance to protect your mortgage if you have:

    • Dependants, e.g. 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.
    You might also want a policy which covers your funeral expenses. You cannot 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.

    Who does not need it?

    You may not need life insurance if:

    • You’re single
    • Your partner earns enough for your family to live on
    • You’re on a low income and could be eligible for state benefits.
  • No sick pay at work? what if you can`t work due to illness Jul 17, 2017

    Losing the ability to earn an income could be a financial headache.

    Your income is your most important asset as it allows you to maintain your current lifestyle, if you take a moment to think about it, the money you earn pays for almost everything you have… mortgage, car loan, bills, children’s education, insurance and so on. The financial headache you face when an illness or accident prevents you from earning a living can be severe. How would you maintain your present lifestyle in the weeks, months or even years in which you are unable to work?

    Even for those with savings in the bank, a long term illness or period of time out of work could mean real financial hardship if there was no cover in place.


    An Income Protection Policy will provide you with an alternative income should you suffer an illness or injury which prevents you from working.


    • You can cover up to 75% of your earnings

    • Choose when you want the payments to start (Standard Initial deferred periods of 0,4,13,26 or 52 weeks)

    • You can choose a guaranteed level premium option where premiums will remain the same even in the event of a claim.

    • As long as you have Income Protection your savings are not at risk.

    • Most employers pay sick pay only for up to one year, the income protection policies can be tailored to pay benefits till normal retirement age should you be unable to work for very long time.

    • Income Protection is even more important for the self-employed as you will not benefit from statutory sick pay which is around £89.35 per week currently for employed people in the event of illness and is only paid for up to 28 weeks.

    In summary Income Protection is designed to provide both you and your dependants with financial security. Don't be without it.

    I can generate a personalised tailored income protection no obligation report for you that will show how long it will take you to run out of your savings in case of being unable to work due to long term illness and will include certain other factors.