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Category Archive Insurance & Protection

Bymapfinancesadmin

MAP Autumn 2021 Budget Highlights

Check out our highlights of the Autumn 2021 Budget from 27th October 2021 using the reader below.

2021-Autumn-Budget

If the above reader does not display correctly, you can access the guide by clicking here.

Bydylanharper95

Work with Us

If you are an Independent Financial Adviser or tied/restricted financial adviser who wants to work in the independent sector and be able to provide clients with a full financial planning service, we would like to talk to you.

We are looking for self-employed individuals who are generating an income of £100,000 or more and want to grow their business without the continual burden of regulation and change management that impacts so heavily on advisers today.

To find out more about the opportunities to work with Money Advice & Planning, please download our Recruitment Brochure, or alternatively, contact our Business Development Manager Ian Clisby on 07788 566 547 or email ian.clisby@mapfinances.co.uk.

Bydylanharper95

Life Insurance

Most people will (or at the very least SHOULD) have some life insurance, and bear in mind that this only pays out on death, whereas Income Protection Insurance (IPI) pays out if you cannot work, and pay-outs can go up to 2/3rds of normal income – so these are very good policies to have, but the only problem is, that people invariably never go for IPI – they go for straight life cover.

The whole purpose of insurance is to provide a lump sum (or an income) in the event of something happening, and that money should cover known liabilities or perhaps expected ones. Now for single people, it is my opinion that life insurance is almost a waste as it only pays out on death, whereas that person should be looking to take out Critical Illness insurance that would pay out on that person contracting a major illness. Income Protection Insurance is also valuable for a single person.

Couples should look to cover both parties and maybe slightly more for the higher earner. Now here life insurance is not a waste as the remaining spouse may very well have to face liabilities – and so will need some money to help with these. Family protection policies are also important if the main earner suddenly falls ill and dies. We normally recommend life cover of 4 times earnings, and that gives the family 4 years of peace of mind and give them a chance to get things organised in time.

The big contradiction in insurance is that most people – if they have insurance – it will be life insurance which in a lot of cases is wasted, whereas Income Protection Insurance which helps more people is least taken out.

This is where people need to sit down with their IFA who can guide them through the BEST type of insurance for them and also the right amount of cover as well. It would be a waste if you had the right policy but fell far short of what you need. AT MAP – we can tell you what the best policies are, and give you all the relevant prices, and then you decide what is affordable.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk

Bymapfinancesadmin

MAP Spring 2021 Budget Highlights

Check out our highlights of the Spring 2021 Budget from 3rd March 2021 using the reader below.

2021-Spring-Budget

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Bymapfinancesadmin

MAP Newsletter – Quarter 4 2020

Check out the latest financial insights for the final quarter of 2020 using the reader below.

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MAP Newsletter – Quarter 3 2020

Check out the latest financial insights for the third quarter of 2020 using the reader below.

If the above reader does not display correctly, you can access the newsletter by clicking here.

Bymapfinancesadmin

MAP Spring 2020 Budget Highlights

Check out our highlights of the Spring 2020 Budget from 11th March 2020 using the reader below.

2020-Spring-Budget

If the above reader does not display correctly, you can access the guide by clicking here.

Bymapfinancesadmin

MAP Newsletter – Quarter 2 2020

Check out the latest financial insights for the second quarter of 2020 using the reader below.

If the above reader does not display correctly, you can access the newsletter by clicking here.

Bymapfinancesadmin

Buildings & Contents Insurance

Buildings and Contents Insurance can be bought either together to incorporate insurance for both aspects named in the title, or in part, to provide cover for just a building or just the contents of a building.

This type of policy is designed to provide benefits as and when claims are made against the loss of or damage to a building or the contents therein. Claims must be sufficiently sizeable to warrant a pay-out and will be judged by an assessor from the insurer, to check its validity.

If purchasing buildings and contents insurance (as opposed to just one or the other) you will have one premium but two sum assured amounts; one for the building and one for contents. This is the maximum the insurer will pay out in any one claim. Therefore, the sum assured for the building will be considerably higher than that for the contents.

B&C insurance can sometimes be compulsory if putting a mortgage on a property and the lender requests it be in place as a condition of the loan. Otherwise, like any insurance, you have to make a considered judgement about whether you think it is likely you will have to claim during the life of your loan. If the worst happens and you have to call on your insurance, then it can be money well spent.

The policies have a fixed term of twelve months, and are reviewed annually by the insurer. At this point, it is normal for renewal terms to be issued and the insurer will write to the policyholder directly in this regard on each anniversary of the policy, offering the opportunity to alter the terms of the contract to suit their requirements.

The premiums can be reduced by not having any claims for a prolonged period and increasing your excess (what you pay before the insurer does). Alternatively, premiums can be increased based on the amount being insured – larger properties and individual items of high value will almost certainly increase the premiums – or if claims are made regularly.

Premiums can be paid either upfront for the year ahead or monthly.

Bymapfinancesadmin

Life Insurance

Life insurance, otherwise known as level term assurance, has a known level of cover that will be paid out in the event of death within a known period of time.

Premiums remain level throughout and should you survive the policy term, there will be no benefit. As this type of contract only provides cover in the event of death there is no surrender value, so if you stop paying the premiums at any time, your cover will cease.

Premiums are based on your personal circumstances but the main areas for consideration by an insurer are your age and state of health. The older you are, the higher the premium will be. Similarly if you have or had a serious ailment the insurer may seek to charge you more or in some cases be unwilling to cover you at all. Higher levels of cover and longer policy terms all increase cost as will the fact that an individual smokes.

Essentially, level term assurance is cheap cover on your life for the benefit of your family or for your business, but there are limitations to it.

As it is a fixed term, there is no flexibility and you will be unable to increase cover or extend the term. Should you therefore find yourself ill at the end of the term you may be unable to obtain further cover.

There is no investment element to the policy, and your sum assured will take no account of inflation.