Scam Alert – Traded Endowment Policies

As more and more people try to take their existing assets and grow their wealth, more scams seem to come to the surface as well. People are usually out to make as much money as they can, and this leaves them open to being taken by deals that are just too good to be true. While traded endowment policies didn’t start out as a scam, they have definitely earned that label as returns fell and money was lost. In this article, we go over the concept of these plans, and why they’re such a bad idea in the first place.

A traded endowment policy is a premium insurance endowment policy. Like other products, they have not only cash value, but a maturity value as well. They are considered “participating”, which means that there are future bonuses. Unfortunately, no one knows what the bonus amount is actually going to be.

Traded Endowment Policies

They were a hot commodity about 8 years ago, because a lot of owners of these policies wanted to sell them off instead of having to turn them into the insurer. In other words, the secondary market allowed people to get a better deal, so that’s where they went.

Here’s where the problem comes in for UK people that felt like they were going to triple their money by investing in these policies: they were often mis-sold. If you’re told that something is safe by someone that you consider to be an authority, wouldn’t you take their word for it? That’s what many UK homeowners did, and it cost them dearly. All they wanted was to try to amplify their retirement savings, but many were left holding the bag. If you got a second mortgage in order to take advantage of this deal, then you basically multiplied your problems further. [Read more…]

Income protection insurance

One of the most valuable resources for protection your financial stability is income protection insurance. An income protection insurance policy ensures that you and your family have the financial coverage you require to maintain your standard of living in the event of an illness or injury that leaves you unable to work for a period of time. The tax-free benefits of your policy can help you keep up with the costs of food, housing and other vital needs until you’re fit to return to work.

Income protection insurance, or IPI, fills an important need for working adults to maintain an adequate income in spite of illness or disability. While state-funded protection benefits may replace a percentage of your lost salary, these funds typically do not cover the realistic cost of supporting a spouse and children. Income protection insurance gives you the supplemental funds you need to live comfortably during an extended absence from your job.

Benefits and Limitations of Protection

In exchange for your premiums, income protection insurance provides tax-free income for a period of time stated in your contract. If you become unable to earn an income because of an illness or injury, IPI pays out benefits monthly or weekly to cover your living expenses until you are able to return to your job, or until the end of your coverage period. If you retire or pass away during the course of your coverage, benefits to you and your family must be replaced by your pension or other retirement funds, or by life insurance benefits.

IPI coverage

The tax-free status of IPI coverage means that you are not subject to normal income taxes. However, your premium payments do not qualify for tax relief, and tax relief from other benefits may be reduced or eliminated whilst you are receiving insurance benefits. If you are covered by IPI through your employer, your employer’s payments for your policy may be claimed as a business expense. This tax benefit may encourage employers to consider offering IPI protection as a benefit of employment.

Income protection benefits are only payable to policy holders who have become unemployed due to an illness, accident or disabling injury. These insurance policies do not cover job loss due to a voluntary resignation, termination or a lay off. Before you purchase a policy, review the list of exclusions carefully so that you are aware of any restrictions on your cover. For instance, many policies exclude income loss due to drug or alcohol abuse, self-inflicted injury, pregnancy, war or criminal activities.

The length of time that you may continue to receive benefits is restricted by your insurance policy. This limit ensures that you have the motivation to resume work once you’re fit to return to your job. If you change careers in the interim, your benefits may be reduced, modified or eliminated, depending upon the risk level of your new profession. While you’re unable to earn your current salary, IPI allows you to fulfill your obligations to your mortgage lender and other creditors, as well as meeting your household’s basic needs.

Income Protection Insurance Rates

In general, IPI is an affordable form of salary protection for healthy adults. Your age, the risk level of your occupation and hobbies, your health status and lifestyle factors such as tobacco and alcohol use may affect your insurance rates. If you have existing health concerns, such as heart disease or diabetes, you may have higher rates or be denied protection by some insurance companies.

The deferred period, or the length of time between the loss of unemployment and the pay out of your benefits, may affect your rates, as well. As the insured, you have the ability to decide how long you can afford to wait before you begin to receive your weekly or monthly payments. When you consider income protection insurance, consider how long your current savings would last, or how much financial coverage your state-funded benefits would provide before you would require IPI benefits to maintain your standard of living.

Comparing quotes for income protection insurance is fast and convenient when you search for affordable cover online. Compare quotes from multiple providers to find coverage within your price range. The cover you receive may make the difference between whether you can meet your financial obligations as you recover from a disabling illness or accidental loss of physical function.

Income protection insurance gives you and your loved ones greater peace of mind, knowing that you have the resources to cope with a financial crisis. An accidental injury or illness can strike any healthy adult. With IPI, you can rest assured that you will be able to provide for your family and maintain the costs of your household in the event of a disabling injury or a sudden decline in your health status.

Wedding Cancellation Insurance

Weddings are a once-in-a-lifetime’s event, that women have planed since their childhood. For grooms, getting married is a rite of passage that marks the steps that a boy takes to become a man. Without a doubt, weddings are perhaps one of the most special occasions that two people can share in their lifetime.

Weddings can be a complex event to coordinate, arrange services for, and to pull off. Investing in wedding cancellation insurance is the perfect way to safeguard the financial investments that go into planning a wedding. Wedding insurance is a cover policy that protects the financial investments for items like nonrefundable deposits, damages to property or possessions, theft and vandalism, and many other incidents that may occur leading up to a wedding.

Wedding Cancellation Insurance – What Does It Do?

Wedding cancellation insurance is insurance coverage that helps to protect the financial investment that goes into planning and orchestrating a wedding. Most wedding insurance cover policies are offered in a range of coverages usually in increments that range between ?5000, and ?50,000.  There are wedding insurance policies that offer coverage at higher levels.  Weddings are considered big events, regardless of their size. They are very complicated and complex events to plan, orchestrate, and eventually pull off.

There are a lot of deposits that must be made. There are a lot of outside vendors and suppliers that must be relied upon to do their jobs. There is a great deal of money that goes into producing a wedding. There are a great many factors outside of anybody’s control that can go wrong. Insurance cover for weddings is designed to give peace of mind to those people who have to invest in a wedding.

Wedding Cancellation Insurance

Wedding Cancellation Insurance – What Does It Cover?

Insurance coverage is limited by the maximum amount of the policy. When choosing insurance cover for weddings and other important occasions, make sure that the maximum coverage amounts is adequate for the function that the policy will cover. For weddings, it is important to make sure that the dress, rings, the wedding transportation, the wedding cake, flowers, and any other deposits that may be required, be covered under the policy.

An important question to ask is what happens if a supplier is unable to meet their obligations at the last minute. To find a suitable replacement may cost extra, and it is important to know if that extra charge is going to be covered by your insurance policy. [Read more…]

What is professional indemnity insurance and do you need it?

Professional Indemnity Insurance is protection for companies and contractors who give advice or offer a professional service to other businesses.

Most mistakes made in the workplace are only small and easily rectified, however some can have much more serious implications. Professional Indemnity Insurance is there to help protect you and your company should you become implicated in a case as a result of a mistake.

In many industries it is a legal requirement to hold Professional Indemnity Insurance, and in others it is required in order to adhere to with the regulatory bodies that govern it. Even if you are not directly required to hold Professional Indemnity Insurance it is becoming more and more challenging to survive without it, as many clients will now insist that every supplier they work with has PII in place.

professional indemnity insurance

Professional Indemnity Insurance will cover you for the following instances up to the limit of your policy:

  • Professional neglect
  • Negligent statement or actions
  • Breach of confidentiality
  • Libel or Slander
  • Loss of documents

This means that should a mistake arise under one of the above circumstances, the amount of compensation awarded against you, and costs incurred for corrective work you have to complete and associated legal costs would all be covered, up to the limits of your policy.

Not only does PII protect you and your company from the financial implications of compensation, it is also there to help you keep the negative impact of a court case to a minimum as experienced legal aid can go a long way to reducing any damage to your reputation.

Types of business that often take out professional indemnity include accountants, IT consultants, business consultants, journalists, architects, financial advisors, engineers and many more.

Please click here for more information on professional indemnity insurance.

Pet Insurance Is a Great Way to Save Money and Protect Your Four Legged Friends

Are you thinking about insurance right now? Probably not, but that’s what we’re here for, right? You need to make sure that you’re thinking about all of your options when it comes to great insurance for the entire family. Naturally, for most pet owners that would extend to you and your four legged members of the family. Yet is pet insurance really something that you need to consider? The jury is actually out on it, if you’re looking around the world of personal finance. Some people feel that pet insurance is absolutely worth it, and they will defend it to the teeth. However, you have to think about how often you’re going to use it. Pet insurance isn’t something that’s always standard across the board. This means that your veterinarian might not take the insurance at all. That would still leave you having to cover the bill.

What’s worse is that if you have to suddenly get emergency care, you might not have time to find the provider that’s going to accept your pet insurance. This means that you could still be reliable for a pretty hefty bill. Even if you can get reimbursed it can take a while for all of the paperwork to go in. You don’t want to try to handle everything on your own though, and pet insurance when it works very well.

Pet Insurance

It’s going to be up to you to find a pretty nationwide form of pet insurance through a career that has a lot of partnerships around the country. If you try to go with a super cheap policy, it might not be accepted as universally as you might like it to be.

You also have to realize that if you don’t pay the premiums, you’re not going to have the coverage. While this might sound obvious, you might be surprised how many people seem to forget that. You always want to make sure that you’re pursuing all of your different options out there. Don’t just give up thinking that you can’t find affordable pet insurance. You also want to make sure that you’re looking based on your actual pet. Don’t just think all pet insurance is the same across the board. You want to go with insurance that specifically covers the animal that you have in question. For example, do you really want to take out a pet insurance policy and find out that they don’t accept birds? That’s a “gotcha” that could cost you a lot of money.

Be aware that pet insurance doesn’t help you buy all of the supplies that you need for the overall maintenance of your pet. Medications that they need as a result of illness can be covered, but again…check the fine print of a policy before you assume everything is right as rain. This is why comparing quotes online is really the best way to go.

It’s a little way to take care of the pets in your family, but it’s not without its problems. As long as you’re willing to do true research, there’s really no way that you’re going to go wrong with this. Good luck!

Unemployment Protection Still matters – Check It Out

Are you looking and worrying about losing your job? If you have enough time to prepare, you can invest in something that can make it easier than ever before to really get a handle on your finances and move on to a better job later on. This would be unemployment protection. Now, some circles of the media feel that this is insurance cover that’s a real waste, but we don’t think so at all. The truth is that if you really want this type of protection you can certainly find it. It’s just a matter of deciding what you’re going to do and then following through with it.

Keep in mind that unemployment protection kicks in when you’ve been made redundant. If you’ve been fired, it’s on you to find a job on your own. But with so many companies looking at downsizing, it might be in your best interest to get this coverage anyway.

Unemployment Protection

You want to start by looking at the waiting period on the policy. Obviously, this is an insurance product. You’re not just going to be allowed to make a claim early on. You’re going to have to actually wait a little bit. Usually 90 days. You also want to look at the maximum amount of your salary that they’ll actually cover. This can be as high as 85 percent, but the higher the percentage — the more money that you’re going to have to pay in terms of premiums.

The deferred period is a little different — it’s the amount before the monthly benefit gets paid. If you have savings, then you can select a longer deferred window so that your premiums come down. But if you need it fast — like four weeks from the date you lost your job — you’ll be able to get that. It’ll just cost you a lot more money.

You will also struggle to find insurers that are willing to cover 80% of your salary — usually 50-60 percent is much more common. You also want to look and see how long they’ll actually cover you. The longest policies that we’ve seen go up to a year. You might not think that’s a long time, but it’s better than the alternative.

Unemployment can strike at any minute. The job market has become so competitive that it’s very difficult to find a job. Companies are getting pickier and pickier about who they really want on their teams, which means that you’re going to have to work even harder to get things done. Now is the perfect time to make sure that everything is lining up the right way. Good luck!

Thinking About Your Home – Don’t Forget Buildings and Contents Insurance

If you’re going to make sure that your home is completely protected, you have a lot of work to do. The reality is that you can’t just stop at a good security system. You need to look into insurance protection that really gives you the chance to start over if the worst happens. That type of insurance is referred to in the industry as building and contents insurance. It’s more important than ever, especially as the economy begins to get worse. Here’s what you need to know.

You see, you get to go with an insurance package that will protect you when it comes to repairs due to fire, flood, and other natural disasters. The structure is covered, as well as the internal contents of the building. That’s the part that usually gets left out. When you’re buying your dream home, you n ever expect anything bad to happen. However, when things really start getting bad, you start wondering how you’re actually going to make all of the pieces fit together. You can have a really hard time getting things off the ground, when you really think about it. You have to be able to protect yourselves from all sorts of different scenarios. Being able to quickly replace items in the event of a fire is very important. It gives you a chance to start over without really feeling like you’re going to have to scramble to figure out where to get the money. Generally speaking, natural disasters tend to set a family back financially. You can protect yourself against this by investing in insurance now.

Contents Insurance

It can be awkward to find insurance an investment, but that’s what it really is all about. It’s about making sure that you have a backup plan in case the worst happens. Instead of having to shell out thousands of pounds, you can just pay your excess and keep going. If you have enough in your savings account to cover that, you can get your insurance claim paid out very quickly.

Going online for buildings and contents insurance is a good idea. Of course, you don’t want to just think about insurance in terms of price. This is a good way to get ripped off because you weren’t looking at the terms. Generally speaking, the cheaper the policy, the more restrictions are actually involved. You would do a lot better making sure that you’ve considered just about everything involved with your policy.

Some people will try to scrimp on this policy, thinking that a natural disaster couldn’t sweep through and take away everything they love about their home. However, you don’t want to play those odds at all. It’s too easy to wake up to all of your property destroyed, along with the things that you really can’t replace. Look into a great policy now before the worst happens.

You can always get separate contents insurance if you feel like you’re going to need more coverage than what you would get with a bundled package. It’s completely up to you, but you’re going to need to go do the research on your own. Good luck!

Going broke from a mis-sold PPI – It’s up to you not to jump into that situation

So much has gone on since the discovery that Payment Protection Insurance was widely mis-sold to millions of credit consumers throughout the country. For years people have gone broke because of the amount they paid to the insurance policy that never really helped them. Although it was introduced as a safety net for debt repayments in times of sickness, accident, or redundancy, it became more of a burden for a great majority of consumers as banks took advantage of the product and devised schemes to sell it even through breaching regulations.

PPI claims have begun to flood into financial institutions for the past several years. Complaints were made to banks that PPI has been totally useless to them and some were lied to when they tried to claim for cover – told that if they use PPI for the repayments of their debt as they were unable to for the meantime, their credit scores will be affected. What a scam!

mis-sold PPI

Then again, as the High Court ruled that those consumers who were wrongly signed up to the policy will have to be properly compensated, you’ll realise that you now have the opportunity to change the situation. It’s now up to you if you want to let yourself go broke by not taking heed of this chance.

Making PPI claims is not as complicated as some people said it was. In fact if you choose to make a claim by hiring an expert or do it yourself, you’ll follow the same process and go through the same turnaround time. Investigations to prove the mis-selling would usually take 6 or 8 weeks, given that the evidence presented is sufficient enough and the situation is less-likely to be complicated.

To start your claim, you will need to establish the existence of the policy alongside any of your finance agreements – be it on a credit card, loan, or mortgage. Check your documents for any reference to PPI and make copies of them, particularly those that indicate the amount paid to the policy and the duration of its existence. You will need to attach them as proof to your claim.

Then, put your claim in writing, stating how the mis-selling happened. In general, there are a lot of situations where mis-selling of PPI can happen. [Read more…]

With the NHS Available, Why Bother with Private Medical Insurance

It’s a blunt title, but we get this blunt question delivered to our email boxes quite often. A lot of UK consumers wonder whether or not it would even make sense to pursue private medical insurance. In a world where every single cost is going sky high, it’s a valid question. We sought to answer it the best way we could.

And the answer is mixed: it depends. It really does depend on where you are in life. If you’re someone that’s really thinking about branching out, getting things done, and protecting yourself from every angle then PMI might be for you. However, the cost seems to be the highest when you’re advanced in years. If you’re much older and in retirement, then PMI doesn’t make sense. You’ll have the same services that PMI would expose you to, but you might have to wait longer for them.

Private Medical Insurance

PMI is essentially about trying to get a better place in line than what everyone else is going to have to deal with, but it’s so much more than that. It’s about the quality of care that you wish to receive. If you know that you’re going to need medical tests that the NHS just won’t cover, you might want to look into PMI more than other people. However, you also get a consultant of your choice. If doctor choice is something that’s important to you, going into the private sector is definitely where it’s at.

We’re not knocking the NHS at all. There is a time and a place to look at the NHS, and it would be a bad idea to ignore it merely because you don’t feel that it’s necessary. The truth is that it’s very much a necessary part of our society. Even though UK consumers have two options, they have to go with the option that works for their unique situation. If you’re already stretching to make ends meet every month, you might have to just deal with the NHS coverage. However, if you know that you have the extra money, PMI could be the best thing you’ve had.

Here’s a few more tips to connect everything together. First and foremost, you really want to make sure that you’re looking at a policy that has a modest excess. The policy will be no good if you can never make a claim, as you already know. From here, you might want to look at any discounts that could come from paying multiple months at a time. Annually or semi-annually could lock in big savings.

You also want to look at any exclusions with the policy that might be a deal breaker for you down the line. The more information that you can get about your policy, the easier it will be to make good decisions. The ball is really in your court here with this, so don’t give up. Good luck!

Deciding Whether to Bother With Insurance

Insurance can be a lot of money and if you are already struggling financially, then it can be tempting not to have any. Some people have the cheapest insurance, some have the minimum and others do not bother. It is worth considering the consequences of this though.

You will find that if you have a mortgage then your mortgage company will insist that you have life assurance and buildings insurance. You will also be legally required to have car insurance if you drive. With paying out all of this already you may decide that you do not want any more insurance or if you have no mortgage you may decide not to bother with the life or buildings insurance.

It is important to think about the purpose of insurance. It is there to give your peace of mind. If anything happens then it will pay out the help you. For example, if your house burns down, then you will be able to get the insurance to pay out to rebuild it and pay to replace the contents. This is something that you are unlikely to be able to afford to do yourself. Life insurance will pay out to help your loved ones cover costs after you have gone.

Bother With Insurance
Although the monthly cost of the insurance can be a burden, you have to consider the consequences of having it. Some people will still think that it is not worth it. It will depend on whether you have dependents who would benefit from a pay-out for one thing and whether you could afford to replace something that is stolen or damaged. You may decide that mobile phone insurance is not worth it, but perhaps that buildings insurance is as you could afford to replace a phone, but not a house.

You may also feel much safer knowing that you have insurance. Knowing that if something happens that you will get some money to help can give you peace of mind, especially if you do have a family to think about. Protecting against a risk is always a gamble as you never know whether you will use it or not, but it can help you to feel more relaxed and that can be worth a lot.

You need to calculate whether you can afford to be without the insurance really. Think about the cost of not having it and whether it is best to have it or not. It is hard to predict the future but you need to consider what the risk might be and whether you think it is worth insuring against.