Life insurance is intended to provide financial security for your partner and family in the event of your death. we offer comprehensive advice on correctly setting up life insurance policies and ensuring that it will act in the way you intended it to do so at a time of need.  As independent insurance advisers, we can search the whole insurance market to find the products that best meet your needs at the most competitive premiums.


Life insurance has four main forms:

Mortgage protection – usually set to decrease in line with your mortgage amount and term.  Usually, critical illness is attached, as this is the most cost effective way of having what would otherwise be a prohibitively expensive illness cover.

Family Protection – usually set to provide an amount of money which remains the same throughout the selected term, to ensure your family can maintain their lifestyle once the mortgage payment is made or to replace lost retirement provision due to early death or simply as a legacy.

IHT protection - set to cover a known IHT liability on death with no specific term.

Business Protection – set to allow business partners/company to purchase the value of your share in your business from your estate or to cover the costs of replacing key personnel.

Adequate life assurance makes sure that those left behind aren’t left with large debts.  There are so many different kinds of insurance and so many life assurance companies with similar offerings that it is often one of those things that we forget about but:

  • Do you know what cover you actually have?
  • Is it still appropriate for your current situation?
  • Is it decreasing or level?
  • Guaranteed premiums or reviewable premiums? (Guaranteed premiums cannot be increased by the insurance company during the term)
  • Should it be in a trust?

While it is rare to have too much life cover, care must be taken that life insurance wouldn’t take your estate over the inheritance tax band reducing the sum assured by a 40% Inheritance tax charge, this could be dealt with by simple trust forms and a financial adviser can help you ensure the right planning is in place, whatever happens.

A little known aspect of insurance is that no one provider can be the most competitive for all ages or lifestyles.  Often, particularly, if life assurance has been taken out with a tied provider, without a market comparison, you may well be paying a lot more than necessary or indeed have been penalised by a ‘premium health rating’ that another underwriter would be more lenient with.

The most important aspect of protection is that you need a level of cover that is appropriate for your circumstances at a price you can afford.  Having life cover over the amount of your mortgage loan is also desirable, as this protects your loved ones from the worry of other expenditures in life and can also help to ensure your dependants have sufficient income replacement where pension funds have not had time to grow sufficiently.

Life Insurance to cover inheritance tax

If there is a known inheritance tax liability then an insurance policy can be taken out to cover the liability to protect the beneficiaries.  There are two ways of doing this:

A whole of life:  A whole of life policy insures the total liability, where the date of liability (death) is an unknown, a whole of life policy can be affected which will ultimately pay out on death.  There are three forms of whole of life policy a"guaranteed policy" “maximum life cover” and “balanced life cover”

  • "Guaranteed Policy" is a fixed premium fixed and fixed sum assured with no investment element.

  • “Maximum life cover” is initially cheaper as most of the premiums go towards life cover.  However, there will be a 10-year review at which time the premium will increase, sometimes substantially.

  • “Balanced cover” is initially much more expensive but is unlikely to increase in price at the review as part of the premium is invested in going towards increased costs as you get older.


  • Seven-year rule/ gift intervivos policy:  If a gift is given this value will not leave the estate for 7 years, which leaves a potential liability over this period.  A 7-year insurance policy covering the tax liability of the gift will cover the tax liability immediately.  A gift intervivos policy will reduce in line with the 7-year rule making the insurance policy cheaper – however, this only works on gifts over the nil rate band, any gift up to the nil rate band must be insured on a 7-year level term.  This because when gifts are assessed, they are used to fill up the Nil Rate Band first where taper relief is not a factor – therefore only gifts above the Nil Rate Band receive taper relief.



Typical life only insurance costs for £100,000 over 20 years with guaranteed monthly premiums

Mortgage protection – decreases in line with a mortgage.

Non-smoker age 20:   £5.00        Smoker age 20:   £6.70
Non-smoker age 30:   £5.30        Smoker age 30:   £7.20
Non-smoker age 40:   £7.60        Smoker age 40:  £13.00
Non-smoker age 50:  £16.66       Smoker age 50:  £34.00


Family protection – remains the same throughout the term.

Non-smoker age 20: £5.40          Smoker age 20: £7.40
Non-smoker age 30: £6.00          Smoker age 30: £8.80
Non-smoker age 40: £10.40        Smoker age 40: £18.20
Non-smoker age 50: £23.80        Smoker age 50: £49.40


Typical life AND critical illness insurance costs for £100,000 over 20 years with guaranteed monthly premiums

Mortgage protection – decreases in line with a mortgage.

Non-smoker age 20:  £11.00       Smoker age 20:  £14.00
Non-smoker age 30:  £14.00       Smoker age 30:  £19.00
Non-smoker age 40:  £27.00       Smoker age 40:  £47.00
Non-smoker age 50:  £76.00       Smoker age 50: £143.00

We are an Independent Financial Advice firm (IFA) in Bingham and Woodthorpe Nottingham offering financial advice and mortgage advice in the surrounding areas of Newark, Grantham, Lincoln, Sheffield, Leicester and Derby. Our aim is to offer clear, simple, sensible advice and an excellent, open and shared ongoing process of advice and life planning, with very competitive and transparent fees and a highly personalised service to all our clients across Nottingham and the areas surrounding Nottinghamshire and across the East Midlands.

Our advice includes Pensions, Investments, Mortgages, Life Insurance, Critical Illness, Income Protection, Private Medical Insurance, Equity Release, Long term care

Our Independent Financial Advisers are always happy to meet at our clients' preferred location and time and to have detailed initial discussions with no obligation.

Please contact us by calling 01949 836173 or email us on This email address is being protected from spambots. You need JavaScript enabled to view it.