Independent Financial Advice in The City of London
a) Income Protection
What would you do if you suddenly and unexpectedly had to stop working because of a serious illness? Would you and your family be able to financially survive without your income? For most of us, the answer is no.
For this reason, you should give serious consideration to income protection insurance. Our expert team will guide you through the maze of options, risks and benefits of taking out income protection insurance which is especially essential for those who are the main earner in a family or are self employed.
Policy Types
There are a number of different types of policy that are available to you depending on your needs and circumstances.
Income protection Insurance (which is often referred to as Permanent Health Insurance or PHI), is similar to Accident, Sickness and Unemployment (ASU) insurance in that it is designed to replace your income should you become incapacitated and therefore be unable to work. There are several fundamental differences between the two plans, however.
Income protection insurance policies are designed to provide you with a replacement income in the event of a long-term sickness or disability. Payments are usually made when you cannot work because of illness or injury.
ASU insurance policies will also protect your income against illness or injury. However, the difference between the two types of policies is that ASU plans also protect your income if you are made redundant by your employer.
A critical illness cover policy will pay you a lump sum to provide for your financial needs if you are diagnosed with a specific critical illness that meets the policy definition of the insurance company with whom you are insured.
Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least one month after becoming critically ill, before the policy will pay out.
b) Health Insurance
The average wait time for an outpatient appointment with the NHS in England is nearly 7 weeks. Many people instead opt to take out a private health insurance policy, which will cover the cost of private medical treatment in the case of curable or short-term medical conditions.
Private Health insurance provides the policyholder with the guarantee that treatment will be available as soon as they fall ill or injure themselves.
Private health insurance should not be regarded as an alternative to the NHS but it will ensure that you get medical care more quickly, at a time and place that suit you.
Some of the advantages of having private health insurance over relying on the NHS are as follows:
1. You have your own choice of doctor/hospital
2. Shorter waiting times for elective surgery
3. You are treated in a private ward
4. Luxuries, such as a TV or phone
5. Peace of mind
6. Assurance that you and your family, especially your children, will be seen quickly when they are ill or injured.
The health insurance cover you receive will depend on the type of policy that you have taken out and any restrictions that may have been imposed by the Insurer or perhaps even by yourself (to keep the costs of the health insurance low).
Usually health insurance cover will provide funds for your consultations, tests and any operations you may need. You will have the benefits of a private room and no waiting lists. Furthermore, you should be able to choose where you would like to be treated and when.
To ensure that you get the most competitive policy on the market that has the maximum level of cover, contact us at Evergreen Financial and we will assist you.
c) Life Cover
Life insurance can be a useful way of cheaply and effectively providing for your loved ones in the event of your death.
Planned well, a life insurance policy can be used as an extra source of capital for your family to use as they wish on your death or be used for example as a vehicle to pay off any sums outstanding on your mortgage.
It can also remove the worry of paying for funeral costs or indeed any potential Inheritance Tax liabilities.
Life insurance is a contract between you as a policy owner of the life insurance policy and the insurance company as the Insurer. The Insurer agrees to pay a sum of money on your death, more strictly speaking on the death of the Insured, who in fact could be a different person to the policy holder.
When the Insured person dies, the money under the terms of the life insurance, a lump sum usually, is paid to the persons nominated by you before your death.
In return, the policy owner agrees to pay a sum of money to the insurer, usually every month throughout the term of the policy, called a premium. In rare circumstances, this could also be paid as a lump sum at the outset.
There are many different types of life insurance policies. To ensure that you get the right policy that meets all your needs and objectives, it is imperative that you take good sound financial advice. Please contact us to discuss your needs and requirements. As Independent Financial Advisers (IFAs), we are able to source the whole market to find the most suitable product for you.
Broadly speaking, there are two main types of policy:
Level Term Insurance – The policy benefits remain unchanged throughout the term of the plan.
Decreasing Term Insurance – This type of plan is most suitable for those with repayment mortgages. The policy benefits fall each year in line with the amount being repaid on the outstanding loan.
Life Insurance - Did you Know?
It is worth noting at the outset that an overwhelming majority of UK consumers are unaware of the existence or the workings of some of the types of life insurance policies. Even worse, most people take out life insurance without ever discussing their situation with an Independent Financial Adviser.
Often, the subject is first raised at the time of mortgage planning, and a policy is taken out on the spot with a bank or mortgage broker, without any check as to value for money.
A few minutes spent discussing your needs with an Independent Financial Adviser - one who can advise on appropriate products and access the entire marketplace on your behalf, could save you £,000's over the years!
You may be paying too much!
It is also not widely known that life insurance rates are currently more competitive now than probably any time in the past. That means, for those who purchased a life policy say, three or more years ago, it is entirely possible that a new policy purchased through Evergreen Financial Limited, on a like-for-like basis, could produce worthwhile savings.
When the monthly saving is multiplied by twelve for a yearly figure, and then by the number of years left to run on the policy, the resultant saving is likely to be more than worth the effort of half an hour's form filling!
Please call us on 020 7631 9572 to discuss your requirements.