At BCK Wealth Management, we take a holistic approach to our client’s financial needs, and always consider both elements of Wealth Management, which are:
- Wealth Protection, and
- Wealth Creation
While it is undoubtedly important for all individuals to create wealth in a tax efficient way, it is of equal importance to ensure that this wealth is protected. The key focus here is to protect both the income that you have already earned, and that which you will potentially earn in the future. This in turn ensures that yourself and your dependents are protected in the event of loss of income due to death or disability.
Life Assurance is a policy that pays a specified lump sum to your dependents in the event of your passing away. This can mean that outstanding loans can be cleared and that your surviving spouse and dependents can maintain the lifestyle to which they have been accustomed to. We would recommend that all our clients have sufficient life cover to:
- clear all existing loans in the event of their passing away, and
- ensure that their dependents have a lump sum sufficient to replace any lost income until such a time as ones dependents are all financially self sufficient.
- Address any tax liabilities that may occur as a result of inheritance tax (CAT)
- For companies - ensure that the company does not suffer financially from the absence of a key member of staff
- For company directors – make sure that in the event of one of the directors passing away that his/her spouse receives prompt and sufficient payment for the shares they have inherited, and the other company directors have the necessary funds to buy the shares from the surviving spouse
Income Protection Cover
Income Protection is a policy that is designed to replace your income in the event of your being unable to work due any injury, illness, or disability. It is possible to insure up to 75% of your income, and the premiums paid also qualify for tax relief. Once you are unable to work for a period lasting longer than the specified deferred period, a claim can be made, and once successful, benefits will be paid until you either return to work full-time, or retire. We would recommend that all our clients, where possible, are adequately insured against loss of income, as this would have a dramatic effect on your families lifestyle as well as mortgage repayments, savings, insurances, car loans, etc.
Specified Illness Cover
Specified Illness Cover is similar to Life Cover in that it pays a lump sum in the event of you being diagnosed with a specified illness such as Cancer, Stroke, Heart Attack, Parkinson’s Disease, etc. Specified Illness cover is more specific than Income Protection, as a claim can only be made upon the diagnosis of specified illnesses, whereas a claim can be made on an Income Protection Plan if you are unable to work due to any injury, illness, or disability. We would recommend that all our clients consider Income Protection ahead of Specified Illness cover where appropriate, with a level of Specified Illness cover in place to cover all outstanding loans also.