There's a great quote from Winston Churchill regarding insurance which weI've copied here:

"If I had my way, I would write the word "insure" upon the door of every cottage and upon the blotting book of every public man, because I am convinced, for sacrifices so small, families and estates can be protected against catastrophes which would otherwise smash them up forever. It is the duty to arrest the ghastly waste, not merely of human happiness, but national health and strength, which follows when, through the death of the breadwinner, the frail boat in which the family are embarked, founders and the women and children and the estates are left to struggle in the dark waters of a friendless world" 

Life Assurance

If you are thinking of taking out some life cover, make sure you consider the following:

  • Calculate how much your family would need - not just enough to cover the mortgage but to replace lost earnings. 
  • The type of cover you need
  •     Level, or inflation linked
  •     Decreasing over a specific term - such as a mortgage repayment
  •     Family Income Benefit which pays a monthly amount to the beneficiaries - this avoids a bereaved family having to invest the proceeds of any claim
  • Whether you need waiver of premium which means the insurer covers the premium if you can't work for more than a certain number of months
  • Placing the plan in trust to ensure any claim can be paid out quickly and without the risk of being subject to inheritance tax
  •     Remember to review the beneficiaries & trustees if you have put it in trust. (We had amend the beneficiary once for a client who'd divorced years before and his ex-wife was still the beneficiary!)
  • For a couple two single life policies typically offer significantly better value for money
  • If you're increasing your cover look to see if you have any increase options on your existing cover (it's typically called a Guaranteed Insurability Option and can be used on marriage, birth of a child or moving house)

Critical Illness

This is an easy one for dentists as you have to simply make sure that you're fully covered for a payout in the event you can't work as a dentist. This element of the critical illness is called Permanent Total Disability. We've done the research and can advise which insurers offer a competitive but comprehensive contract. Incidentally I understand that the re-insurers (most UK life insurance is now reinsured through other companies) are not likely to maintain this 'own occupation' definition for ever for dentists, so if you're thinking of getting it, do it now and if you can afford it make it level rather than decreasing. Then put it in trust. And consider all the above points under Life Assurance.

Click on the link to the right and read more about Critical Illness and watch Marius Barnard's movie to find out how this amazing product was introduced.

Download '19 Reasons Why You should use an IFA for Insurance | PDF' now