BRAND ADVICE

Life insurance, marriage and partnerships

Choosing the napkins or the vintage of the dessert wine for your wedding might get more attention than the financial aspects of the partnership, but if you’re planning a life together, getting the money matters sorted out can aid a smooth ride for years to come.

In the unlikely event of the earner's untimely death, the family could be left in dire straights, unable to pay their mortgage or bills, without some form of insurance protection. Of course, the same will apply to couples who have set up home together, but chosen not to marry.

Although marriage has a number of specific benefits in the taxation of inheritance and capital gains on property, there is no specific tax benefit on life insurance for married couples.

However, life insurance can help the family member left behind to cope with the exceptional cost of funeral expenses, as well as paying off a mortgage. The insurance can also cover one-off costs such as hefty inheritance tax bills.

As with most insurance there’s an array of policies on the market; which is right will depend on your circumstances.

Term life insurance runs for a specific period and can be used during the term of a mortgage or while children are growing up. Premiums are specified and the policy pays out in the event of the policyholder’s death during the term but there is no payment when the policy comes to an end.

Convertible Term insurance allows the policyholder to convert to more sophisticated whole of life or endowment polices without providing a health report.

Decreasing Term and Mortgage Protection insurance have a fixed premium and decreasing sum assured (but they are usually cheaper than level term).

Increasing term insurance allows policyholders to increase their protection as career progress offers higher salaries. In the event of the policy holder’s death this can help the family to continue living in their current circumstances. However, premiums also increase.

Family Income Benefit insurance give a regular income to dependants during the remainder of the term should the policyholder die while the policy is active. Critical injury insurance often falls under the same banner.

Whole of Life Insurance is the most expensive option in terms of premiums, but will offer a pay-out on the death of the policy holder, as well as covering the risk of death during it. It can therefore act as a form of investment as well as insurance. Like other forms of saving it can be linked to the stock market, which can give high returns, but with a risk you won’t achieve them. Or policies can be linked to more reliable investment vehicles, without the top level of rewards.

Although not the most romantic side of getting married, the peace of mind which can be offered by life insurance can contribute to a long and happy union.

Sainsbury’s offer a range of financial services including personal loans, dog & cat pet insurance, life insurance and savings accounts. Visit www.sainsburysbank.co.uk for quotes and more information.