Mortgage Brokers Gloucestershire
Mortgage Brokers Gloucestershire
Mortgage Brokers Gloucestershire
 
Protection


There are many forms of protection, some of which are mentioned in the adjoining pages to this section. Choosing the right one for you can depend upon a number of factors including tax, cost and the protection required.

You can use the information and tools on this site to gain a basic understanding of what is available, however this information is only an overview, only expert, independent advice following a full review of your circumstances will ensure you find a solution that provides peace of mind.

Protection can be used to protect income, loved ones and businesses and, in certain circumstances, can be arranged in such a way as to minimise the effect of tax.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Critical Illness Insurance

Not quite as certain as death...

But in some cases even worse. If nobody wants to think about death you can bet your bottom dollar no-one want to think about serious illness. Sadly, a good number of us will have to...take a moment to think of people that you may know that have been affected by some of the conditions listed below and unfortunately it is likely that most of us know someone that has been affected by one or more of these.

Cheery stuff I know, but the fact is that life goes on for many of those who suffer critical illnesses and our loved ones are likely to still need financial support, particularly if they are still young or financially dependent. Coming to terms with the loss of a loved one is bad enough, having them still around as a financial burden can put heavy strains or relationships, families and lifestyles.

Like life assurance, it is possible to insure against Critical Illnesses. Cover is payable on the conclusive diagnosis of  a specified critical illness. Some of the conditions covered in most benefits include:

Some forms of Cancer HIV Infection
Some forms of Heart Attack Kidney Failure
Some forms of Stroke Loss of Speech
Alzheimers Disease Loss of Limbs
Aorta Graft Surgery Major Organ Transplant
Benign Brain Tumour Motor Neurone Disease
Blindness Multiple Sclerosis
Coma Paralysis of Limbs;
Coronary Artery Bypass Parkinsons Disease
Deafness Terminal Illness
Heart Valve Replacement Third Degree Burns
Traumatic Head Injury Third Degree Burns

Also as with life assurance there are variations of the types of policy available and the most common are:

Level term asssurance - designed to pay out a sum of money if the policyholder should contract a critical illness during the policy’s term. The sum assured is guaranteed and remains unchanged throughout the term.

Decreasing term assurance (also known as mortgage protection cover) – where the sum decreases during the policy in line with the capital and interest repayments on a mortgage.

In general terms the cost of Critical illness cover is higher than life assurance (depending on age and medical history it can be 3 or 4 times more expensive), as it is more likely to pay out during the term. It is often cost effective to combine life and critical illness cover in the same plan.

Unlike life assurance, Critical Illness cover is particularly appropriate for those who have no dependants.

As with life assurance, the basic premise behind critical illness cover is simple, but there is more complexity in the detail, different levels of cover available, different definitions of the various conditions and so on. Very careful planning is required to ensure that you have the correct level and type of cover from this valuable product. If you need more advice contact us now.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Permanent Health Insurance

No-one likes being ill

Most people prefer not to think about long-term illness but official figures show that every year more and more people are absent from work for more than six months because of it. Forget about the big diseases, think backache, stress & other illnesses often not even considered as being life affecting from a sickness perspective. 

Not surprisingly the state offers only minimal help and eligibility for incapacity benefit is strict. Even if you qualify, benefits are not generous and they are taxable.

Permanent Health insurance (PHI) is also known as income replacement insurance, income protection insurance, long-term disability insurance, disability income insurance or personal disability insurance and is available from most insurance companies.

It pays a regular income designed to protect your standard of living if you suffer long-term sickness or injury. Benefit usually starts after an initial waiting period of 4, 13, 26 or 52 weeks and it is payable until you return to work, die or the policy term expires, whichever happens first.

It's called permanent because the insurer may not cancel the policy no matter how often you claim for benefit, although policies usually expire when the policyholder reaches 60 or 65. It might seem a simple purchase but no two PHI policies are alike because exclusions vary and cover differs widely. The most important thing is try and get a policy on “own occupation” terms. This means it will pay out if you are unable to pursue your own occupation.

If you suffer a disability or illness that enables you to return to work but only on reduced earnings, maybe as a result of going part-time or taking a lower paid job, your insurance company will probably pay you a reduced benefit.

The costs
A number of factors influence the size of premium you pay.

Occupation - Not surprisingly administration clerks will pay a lot less than deep sea divers. Companies will refuse to insure people in very high-risk occupations. If you change your occupation some companies will continue to provide cover while others may cancel it. It's vital you tell your insurance company if you start a new job - failure to do so could invalidate a future claim for benefit.

Waiting period - A policy with a 13-week waiting period will typically charge lower premiums than one with a 4-week wait and so on. The waiting period chosen should either tie in with the end of sick pay from your employer or your own savings.

Gender - Not much you can do about this one (without getting pretty drastic !) but statistics show that on average women are more likely to suffer ill health than men during their working lives. Therefore, premiums are higher for a woman than for a man of the same age and occupation.

Smokers - Non-smokers pay less.

Most insurance companies guarantee that the premium you pay when you take out the policy will never change unless you decide to increase the level of cover it provides.

Making a claim
Contact the insurance company as soon as possible - don't wait for any deferred period to lapse.

Because the aim of a PHI policy is to replace earnings lost through sickness or injury without reducing your financial incentive to return to work, all policies set a maximum income benefit limit. This used to be 75% of average monthly earnings in the year before disablement, minus state benefits and benefits from any other disability insurance. But now PHI benefits are tax-free, the usual maximum benefit is between 50% and 60% of a claimant's gross salary, plus state benefits.

When you are well enough to go back to work contact your insurer who will stop benefit payments. If you go back to work on a part-time basis or take a lower-paid job, your insurer may pay you reduced benefit.

If you need more advice contact us now.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Your home may be repossessed if you do not keep up repayments on your mortgage.

You can choose how we are paid for mortgages; pay a fee of 0.50% of the loan amount, or we can accept commission from the lender.



 

Contact BDM


Do you require expert mortgage advice?
Call us today on 01453 750 739
Email. brian@bdmfinancial.co.uk
We are always happy to help and assist you... 


Mortgages Gloucestershire | Mortgage Brokers Gloucestershire | Mortgage Advice Gloucestershire | Financial Advice Gloucestershire | Mortgage Brokers In Gloucestershire

Registered Address: 68 Peghouse Rise, Stroud, Glos, GL5 1UR . Registered in England. Reg No. 4997591

Call us today on 01453 750 739
Email. brian@bdmfinancial.co.uk