Very few people will be aware of the existence, let alone the relevance, of a recent piece of legislation; the Bereavement Support Regulations Paper. This piece of legislation significantly changes the help and support available to the widowed parent of a family unit; undoubtedly affecting the quality of living that family faces.
Currently a widowed parent can receive a ‘tax free bereavement lump sum’ of £2,000 and then a monthly payment of £487.71 per month until their youngest child leaves school. If one parent died when the youngest child was a new born this could be for up to twenty years. From 6th April 2017 the system is changing. Whilst existing claimants will be unaffected, going forward the tax free bereavement lump sum will increase to £3,500, but the monthly payment is falling to £350 per month, and can only be claimed for up to a maximum of eighteen months.
It has been estimated that this means that in 91% of cases families will receive support for less time than currently, and that 75% of them will be worse off; by up to £12,000. This means that there will be huge pressure on the surviving parent to get back into work, quite possibly before they and their children are ready. The easy way to protect you and your family against this eventuality in by taking a ‘Family Income Benefit’ protection policy…
Katie Pisanu, Protection Sales Director at One 77 Mortgages, said; “I was shocked when I heard about the looming changes in legislation reducing the help available to bereaved families. Protection is always something that people don’t think about that carefully believing ‘it won’t happen to them’, but sadly all too often things do happen, and you can protect you and your family for a comparatively small monthly payment. For example we can arrange Family Income Benefit cover for our clients for as little as £5 a month, and I would strongly urge people to have the conversation with us.”
At One 77 Mortgages we offer a fee free ‘Protection Review Service’ to anyone who would like advice on Protection. We are able to review any existing arrangements a client may have to discover if these are right for them, whether there is a better level of cover out there, and whether any additional cover is advisable which can be done using a multi-benefit policy; a policy that encompasses not just life assurance but additional elements which could include Critical Illness Cover, Family Income Benefit or Income Protection Cover. We are also able to advise on the various facets of Business Protection.