Life insurance: why there?s no need to be a desperate housewife.
Contemplating what may happen to your wife (or husband) and children if you die is not likely to be a thought you wish to contemplate.
However, avoiding the issue may make life more difficult for your family after your death.
Life insurance looks set to make a comeback in the UK, after a period of neglect by consumers who were simply occupied with affording a home.
The stabilising of the UK house market has made many consumers take a broader view to their personal finances.
LifeSearch (a life insurance broker), in the September issue of Money Observer, highlighted a few common mistakes people make when buying life insurance:
* Believing life insurance is relevant to everyone
Life insurance is only relevant to people who have financial dependents.
If you have no financial dependents, it might be more appropriate to consider income protection or critical illness insurance.
* Paying too much for life insurance
According to Money Observer, research for Sainsbury's Bank Life Insurance revealed that many people take life insurance policies from their mortgage providers and as a result could be paying too much.
* Opting to buy joint life insurance policies instead of single life insurance policies
The advice to married couples is to avoid taking out joint life insurance policies which pay out when the first spouse dies over the term of the policy, but not on the second.
Single policies could provide additional cover by paying just an extra ?3-4 a month.
* Missing out on a trust
The Tax Man can claim up to 40% of your life insurance payout as inheritance tax.
According to Money Observer, those with assets totalling ?275,000 or more (including a house) are especially prone to tax inspection.
Writing your policy in trust is a way to avoid this and as a trust does not have to go through probate, beneficiaries of the policy will receive the payment without delay.
* Only insuring the main earner
Whilst it is important to cover the main breadwinner, by neglecting to additionally insure the housewife or househusband may result in extra child care costs.
Family income benefit (FIB) may be an appropriate policy to put in place.
* Opting for a lump sum over income
If your dependents are likely to require an income, then buying a policy that pays out a lump sum is a mistake.
Many people invest lump sums for an income, but when they invest it, they have to pay tax.
Family income benefit provides a larger payout ? tax free, though the majority of banks and building societies do not offer FIB, so ask an Independent Financial Advisor for recommendations.
* Not proving full medical records or detailing comprehensive medical history
Failure to disclose a complete picture of your health, no matter how trivial, could invalidate a claim later on.
There's no excuse for not conducting your own homework, as there is an abundance of information available online.
Sites such as moneynet, provide not only price comparison research on difference life insurance products, they also offer downloadable consumer product guides.
Lowermybills.com proffers a similar service stateside.
Resources:
Life insurance product comparisons
Life insurance guide
Lower My Bills
.
Life insurance: why there?s no need to be a desperate housewife.
Contemplating what may happen to your wife (or husband) and children if you die is not likely to be a thought you wish to contemplate.
However, avoiding the issue may make life more difficult for your family after your death.
Life insurance looks set to make a comeback in the UK, after a period of neglect by consumers who were simply occupied with affording a home.
The stabilising of the UK house market has made many consumers take a broader view to their personal finances.
LifeSearch (a life insurance broker), in the September issue of Money Observer, highlighted a few common mistakes people make when buying life insurance:
* Believing life insurance is relevant to everyone
Life insurance is only relevant to people who have financial dependents.
If you have no financial dependents, it might be more appropriate to consider income protection or critical illness insurance.
* Paying too...
Life insurance > Life insurance: why there?s no need to be a desperate housewife.
Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
Life insurance is typically taken out to offer valuable financial protection for your family in the event of your death, upon which a payment is made to your financial beneficiaries, heirs or family members. The extent of this payment will depend on your insured sum and earnings. Life insurance and life assurance may be interlinked in advertisements, though bear in mind the two policies are different. Life assurance is a form of financial protection which is also an investment, as you should always get a pay-out at the end of the term of the policy. Life insurance on the other hand is simply financial protection for your family, avoiding the issue of debt in the event of your death.According to an article by the Fair Investment Company, the British life insurance industry shrank to almost half the size of the pensions industry last year and according to the Association of British Insurers, less than 50% of UK households hold a life insurance policy.In their most recent newsletter about...
Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
Life insurance > Life Insurance ? Wise Investment In Personal Finance Or Excessive Caution?
A Guide To Affordable Term Life Insurance
Term life insurance provides you with a more affordable opportunity to ensure you mortgage payments in the unfortunate event of your death. Even though they are offered for a limited time-period, but you can always match them up with your mortgage payment cycles of 10 or 20-year contracts. For the budget conscious, this definitely seems to be a smarter alternative for a low cost death benefit.
Insurance companies offer cheap term life insurance policies with different contract time periods, conversion credit during the first five years and transferable waiver of premium.
Affordable alternatives are available through comparison-shopping at various online insurance intermediaries' websites.
Other than being a cheaper option, term life insurance is better in other aspects when compared to a mortgage life insurance. There are much personalization options available for a term life insurance policy. The proceeds from a term life insurance go directly to the...
A Guide To Affordable Term Life Insurance
Life insurance > A Guide To Affordable Term Life Insurance
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If you have been inactive for a long time, consult with your doctor before you attempt any exercise program. Set a practical, sensible goal, one that is reachable for you. If you cannot exercise every day, do not worry, any physical movement is better than...
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Many professional organizers don't leave either home or office without one tool. What is it? Drum roll please??The answer is a labelmaker. "Most organizers favorite tool is the electronic labelmaker," confirms Diane Hatcher, president of Timesavers Professional Organizing Services, Cooper City, Florida (www.timesaversusa.com). "I particularly use a Brother PT65. It's a portable labelmaker.
And almost everybody that sees mine wants one." So why the love affair between professional organizers...
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Life insurance > Office Organization: How to Use the Tool Professional Organizers Love
Affiliates: The Legal Way to Start Making Money The Extended Version
There are two ways of making quick and continuous (they keep paying you) money on the net. Refer something (affiliate) or make something from your ideas (e-books) What are Affiliates? Companies pays for telling others about their products, but only if someone buys something from them. Just check the bottom of any online store or dealer that you like and see if they have a referral or affiliate program. If you can't find a good affiliate program try http...
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Life insurance > Affiliates: The Legal Way to Start Making Money The Extended Version
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It came as no surprise Friday when shares of A.G. Media Group (OTC:AMGJ.PK) soared 80% above Thursday's closing price. Christian Traders - http://christiantraders.com, the internet's fastest growing faith-based online investment community, first alerted members to A.G. Media last fall and has since conducted several live interviews with management via the international radio show "Prosperity for God's People".Christian investors are faced...
Life insurance Investors Put Their Money Where Their Faith Is
Life insurance > Investors Put Their Money Where Their Faith Is