Insurance Example 1

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Home Insurance

home-insuranceGet the peace of mind that comes with having your buildings and contents covered with a home insurance policy that pays out on a new for old basis (excluding household linen and clothing), simply put — we'll meet the cost of buying new replacement items so you're not left out of pocket.

 

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The services we provide are covered under the Financial Services Compensation Scheme.

 

Take the stress away from things that go wrong in the home, make sure you have the contact details of your trusted local maintenance company. If you're located in or near London we recommend Home Cure Plumbers. To know more about the services that they offer call 0203 504 4000

 

Types of Insurance


Business Insurance

Mobile Phone Insurance - click here to find out how you can protect your phone
Professional Indemnity
Legal Expenses Insurance
Motor Fleet Insurance
Directors and Officers Indemnity
Property Owners Insurance
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Commercial Landlords Insurance - find out more about how to protect your properties
Liability Insurance
Manufacturing Insurance
Warehouse, Wholesalers & Merchants Insurance
Contractors Plant Insurance
Construction Insurance

 

Life Insurance

All of the policies we compare are explained in the simplest of terms allowing you to understand the pro’s and con’s of the insurance policy and make an informed decision based on facts. We have a range of options and policies for you to consider from lump pay sum outs when a loved one passes away to regular income plans for terminally ill events.

 

Case Study

Mr Brown wants to provide financial security for his wife (who is not working) and his two young children. He wants the cover to continue until the children have become independent, so wants a policy to run for 15 years. The lump sum has to provide a reasonable income for them to supplement the modest State benefits (the widow's benefit plus child allowances) they would receive, and he reckons a sum of £120,000 would be needed. At his age of 33, this amount of cover over 15 years will cost £138 p.a. gross, reduced to £131.35 by tax relief at 17.5%.

The important factor in protection planning is the concentration on income requirements, not the apparently large capital sums provided by the policy. If money can be invested to yield, say, 10% before tax, then a sum of £120,000 will produce an annual income of £12,000, but this will be subject to income tax. If the dependants have no other income, the amount of tax paid will depend on the personal allowances they can claim; in Example 1 around £1300 of tax would be payable. This would leave a net income of approximately £134 a week - not an excessive figure given today's cost of living.

Clearly if the wife is also contributing to earnings this must be taken into account. Here each partner should ideally be insured for a sum sufficient to produce at least the equivalent of their net earnings, since apart from the regular outgoings that will need to be covered, there will also be extra costs of domestic help with young children. As we shall see, there are policies more suitable for this purpose than level term by itself.

Level term assurance may be useful in many other circumstances, however. Covering personal debts is one example. Today, many loan agreements such as personal loans and hire-purchase contracts contain automatic life insurance since the prospect of claiming a debt from a debtor's dependants is not relished even by the most stony-hearted moneylender. In some cases it may not be included, however, and it is always worth checking this when arranging such loans. Other loans raised for personal businesses are unlikely to be protected in this way, and here term assurance can be a very sensible precaution.


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Term Assurance

Approximate annual cost (gross) of £500,000 of term assurance for stated periods at ages shown.

Age (years) Term (years)

5 10 15

30 £1114.00 £1115.00 £1117.00

35 £1115.00 £120.00 £125.00

40 £125.00 £130.00 £140.00

45 £135.00 £150.00 £165.00

50 £160.00 £180.00 £11100.00

55 £11100.00 £11130.00 £11170.00

The rates shown are those applicable... see: Term Assurance

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