Further Uses of Life Assurance - Women

Many people tend to think of insurance as a man's province, and few women take as much interest as they should in insurance arrangements. Yet, as we saw in Section 6, women live on average four years longer than men, so the chances are that most wives will spend a few widowed years in later life. It is by then usually too late to buy insurance. Every woman should review her financial needs regularly throughout her life, and this, in particular, includes life assurance. Does the single woman need life assurance? Does her cover need modifying when she marries? What happens if the marriage breaks up? What happens if her husband dies prematurely? What should a woman do if it appears she is unlikely to get married? These are some of the questions that every intelligent woman should ask herself at some stage, and this Section explains what should be done.

Let us start with the young single woman. If she expects to marry in the near future, then life assurance is not her most immediate need. We have already seen that life assurance is a long-term matter, and to qualify for income-tax relief, premiums on most policies must be payable for at least ten years. A single woman intending to marry within, say, five years would probably do better to concentrate on saving with a building society. Her money is secure, earns interest, and can be realized when required at comparatively short notice. In addition she will be in a good position to obtain a mortgage from the particular building society with which she invests. Those not expecting to marry within about ten years are in a different category. Here a ten-year with-profits endowment policy (Section 6) or one of the investment-type policies covered in Section 8 are more suitable. These ensure regular saving, qualify in most cases for tax relief on the premiums, and provide at maturity a useful nest-egg which could, if necessary, pay for the cost of the wedding, or be used as a deposit for a house.

A few insurers offer policies specially designed for the young unmarried woman. Usually there is a basic with-profits endowment policy for a twenty-five year term, together with a number of options. On marriage, the wife can either transfer her policy to her husband, regardless of his health, or keep her own policy going, surrender her policy for a cash dowry, or take out another policy on her husband's life. If she has not married by the time the policy matures, she then receives in cash the sum assured plus accrued bonuses. If this type of policy sounds attractive, make sure that the particular one you want to buy qualifies for tax relief on the premiums.


Women

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Further Uses of Life Assurance Marriage

Many people tend to think of insurance as a man's province, and few women take as much interest as they should in insurance arrangements. Yet, as we saw in Section 6, women live on average four years longer than men, so the chances are that most wives will spend a few widowed years in later life. It is by then usually too late to buy insurance. Every woman should review her financial needs regularly throughout her life, and this, in particular, includes life assurance. Does the single woman need life assurance? Does her cover need modifying when she marries? What happens if the marriage breaks up?... see: Further Uses of Life Assurance Marriage