Buildings and contents insurance
Buildings and contents insurance will vary based on the type of property, its size, location and the property value. Wherever you live, it is always a good idea to have adequate insurance for your property and all its contents in case of emergencies. It is a common arrangement for mortgage companies to offer homeowners insurance with the mortgage, if you have one. Tenants tend to have buildings insurance arranged by or through the landlord, but still need to insure their own contents.
Therefore, it抯 worth remembering that you can buy buildings and contents insurance combined, or separately. Unless you are tied to your mortgage company to use their insurance company or policy, shopping around for the best deal is a sensible idea, as is a combined policy as this will usually be cheaper.
When insuring your home for buildings and contents insurance, many people are unsure as to how much to insure, and unfortunately, many people are underinsured. For the buildings element, the amount shown on the valuation report of property is the amount that needs to be covered. Many valuations will state the value of the property for rebuilding purposes ?this is the figure you need. If you don抰 have a valuation, you could always ask for one from a local estate agent by telling them you are thinking of selling. The main point is that if damage occurs and your home needs to be rebuilt, the insurance money should cover all work to completely rebuild the property.
Cover for the contents of your home is called contents cover. Special high value items may need to be listed separately, so check before accepting the policy, as it is exactly these items that are most valuable and therefore will be most costly to replace. Jewellery, bicycles and expensive electronics such as laptops etc are typical extra items not covered unless specified. Many homeowners give an estimated total amount to the insurance company for contents and ignore these major items, and can be underinsured as a result.
Buildings and contents insurance can come with 揂ccidental Damage and All Risks? These items can be added to your policy at an extra cost but they may be worth it. All risks means that any items regularly taken out of the home can be covered, regardless of where and how they are damaged. This might even cover damage from pets or children ?it抯 basically designed to cover high risk. But remember that anything extra added to the policy will raise your premium.
Apr 30, 2007
Pension Term Insurance
Pension term insurance
Pension Term Insurance is a type of insurance policy which uses your pension contribution allowance to save you money if you are a tax payer. This new type of insurance came into effect on 6 April 2006, when the Government allowed tax relief to be claimed on the term insurance premiums at the highest tax rate you pay - by linking the insurance policy to your pension allowance.
Pension term insurance works like this: assuming you are eligible to contribute to a stakeholder or personal pension ?and regardless of whether you actually do contribute or not - you can take out this type of life insurance policy. The Government has set new limits for how much you can place in a pension of?15,000 per year or ?.5 Million per lifetime.
You can use part of your annual limit to pay for life insurance instead of a pension, by taking out cover that counts towards your limit. So you could take out ?50,000 of pension term insurance and then you would only be able to place ?.25 into your pension. The result is you get to claim tax relief on your life insurance premiums ?which will be 22% for basic-rate taxpayers or 40% for higher rate taxpayers. You can use the allowance whether you抮e actually making pensions contributions or not.
There are a few limitations to pensions term insurance. You can only insure yourself, not yourself plus partner on one policy, and the underlying costs of cover will be slightly higher, but certainly less than the savings you are likely to make. Plus policy premiums are only automatically reduced by 22%, so higher rate tax payers need to claim the additional saving on their tax return.
Also, you cannot convert an existing policy into a pension term insurance policy, and cancelling an old policy and setting up a new one might cost more than you will save.
Because pension term insurance is a form of term life insurance, this means that the payments and cover will stay the same throughout the term of the policy. Plus the policy will be in effect for a set term or period of time, and will expire after this, and you will effectively lose your premiums paid if you have not made a claim.
Pension Term Insurance is a type of insurance policy which uses your pension contribution allowance to save you money if you are a tax payer. This new type of insurance came into effect on 6 April 2006, when the Government allowed tax relief to be claimed on the term insurance premiums at the highest tax rate you pay - by linking the insurance policy to your pension allowance.
Pension term insurance works like this: assuming you are eligible to contribute to a stakeholder or personal pension ?and regardless of whether you actually do contribute or not - you can take out this type of life insurance policy. The Government has set new limits for how much you can place in a pension of?15,000 per year or ?.5 Million per lifetime.
You can use part of your annual limit to pay for life insurance instead of a pension, by taking out cover that counts towards your limit. So you could take out ?50,000 of pension term insurance and then you would only be able to place ?.25 into your pension. The result is you get to claim tax relief on your life insurance premiums ?which will be 22% for basic-rate taxpayers or 40% for higher rate taxpayers. You can use the allowance whether you抮e actually making pensions contributions or not.
There are a few limitations to pensions term insurance. You can only insure yourself, not yourself plus partner on one policy, and the underlying costs of cover will be slightly higher, but certainly less than the savings you are likely to make. Plus policy premiums are only automatically reduced by 22%, so higher rate tax payers need to claim the additional saving on their tax return.
Also, you cannot convert an existing policy into a pension term insurance policy, and cancelling an old policy and setting up a new one might cost more than you will save.
Because pension term insurance is a form of term life insurance, this means that the payments and cover will stay the same throughout the term of the policy. Plus the policy will be in effect for a set term or period of time, and will expire after this, and you will effectively lose your premiums paid if you have not made a claim.
Inheritance Tax Planning
As more and more people own their home, and house prices continue to rise, the number of people affected by Inheritance Tax continues to rise. At the moment Inheritance Tax (IHT) is only payable if the value of the deceased's estate is more than £275,000. The Inheritance Tax rate is currently 40%. The £275,000 threshold can quickly be breached after including the value of your property, possessions and investments.
If the estate (regardless of value) passes simply to your spouse or civil partner (even if seperated, though not divorced or if your civil partnership is dissolved) while you both have permanent homes in the United Kingdom then there is not Inheritance Tax liability. Well known other exemptions are gifts or transfers made more than seven years before death and some other gifts e.g. wedding presents and gifts to charity, political parties and some museums and universities.
Your personal representative or the estate's executor or administrator is liable for paying the inheritance tax due within six months of the date of your death, failing which interest will be charged on the liability.
If your estate is liable to exceed the Inheritance Tax threshold there are options open to you to manage your estate's inheritance tax liability. IHT Planning will likely make use of different kinds of trusts and early transfers of property and assets to take advantage of the seven year rule. Efficient use of your allowances will enable you to ensure that as much of your estate as possible is directed into the hands of those you choose avoiding inheritance tax liability where possible and legal.
Inheritance planning is a complex area of taxation law and the use of a professional inheritance tax adviser is advised. You should ensure that you have a will and that it is kept up to date reflecting your directions for the distribution of your assets. Making a will is an integral part of inheritance planning and specialist advice is recommended, especially if your estate is large.
If the estate (regardless of value) passes simply to your spouse or civil partner (even if seperated, though not divorced or if your civil partnership is dissolved) while you both have permanent homes in the United Kingdom then there is not Inheritance Tax liability. Well known other exemptions are gifts or transfers made more than seven years before death and some other gifts e.g. wedding presents and gifts to charity, political parties and some museums and universities.
Your personal representative or the estate's executor or administrator is liable for paying the inheritance tax due within six months of the date of your death, failing which interest will be charged on the liability.
If your estate is liable to exceed the Inheritance Tax threshold there are options open to you to manage your estate's inheritance tax liability. IHT Planning will likely make use of different kinds of trusts and early transfers of property and assets to take advantage of the seven year rule. Efficient use of your allowances will enable you to ensure that as much of your estate as possible is directed into the hands of those you choose avoiding inheritance tax liability where possible and legal.
Inheritance planning is a complex area of taxation law and the use of a professional inheritance tax adviser is advised. You should ensure that you have a will and that it is kept up to date reflecting your directions for the distribution of your assets. Making a will is an integral part of inheritance planning and specialist advice is recommended, especially if your estate is large.
Inheritance Tax Planning
As more and more people own their home, and house prices continue to rise, the number of people affected by Inheritance Tax continues to rise. At the moment Inheritance Tax (IHT) is only payable if the value of the deceased's estate is more than £275,000. The Inheritance Tax rate is currently 40%. The £275,000 threshold can quickly be breached after including the value of your property, possessions and investments.
If the estate (regardless of value) passes simply to your spouse or civil partner (even if seperated, though not divorced or if your civil partnership is dissolved) while you both have permanent homes in the United Kingdom then there is not Inheritance Tax liability. Well known other exemptions are gifts or transfers made more than seven years before death and some other gifts e.g. wedding presents and gifts to charity, political parties and some museums and universities.
Your personal representative or the estate's executor or administrator is liable for paying the inheritance tax due within six months of the date of your death, failing which interest will be charged on the liability.
If your estate is liable to exceed the Inheritance Tax threshold there are options open to you to manage your estate's inheritance tax liability. IHT Planning will likely make use of different kinds of trusts and early transfers of property and assets to take advantage of the seven year rule. Efficient use of your allowances will enable you to ensure that as much of your estate as possible is directed into the hands of those you choose avoiding inheritance tax liability where possible and legal.
Inheritance planning is a complex area of taxation law and the use of a professional inheritance tax adviser is advised. You should ensure that you have a will and that it is kept up to date reflecting your directions for the distribution of your assets. Making a will is an integral part of inheritance planning and specialist advice is recommended, especially if your estate is large.
If the estate (regardless of value) passes simply to your spouse or civil partner (even if seperated, though not divorced or if your civil partnership is dissolved) while you both have permanent homes in the United Kingdom then there is not Inheritance Tax liability. Well known other exemptions are gifts or transfers made more than seven years before death and some other gifts e.g. wedding presents and gifts to charity, political parties and some museums and universities.
Your personal representative or the estate's executor or administrator is liable for paying the inheritance tax due within six months of the date of your death, failing which interest will be charged on the liability.
If your estate is liable to exceed the Inheritance Tax threshold there are options open to you to manage your estate's inheritance tax liability. IHT Planning will likely make use of different kinds of trusts and early transfers of property and assets to take advantage of the seven year rule. Efficient use of your allowances will enable you to ensure that as much of your estate as possible is directed into the hands of those you choose avoiding inheritance tax liability where possible and legal.
Inheritance planning is a complex area of taxation law and the use of a professional inheritance tax adviser is advised. You should ensure that you have a will and that it is kept up to date reflecting your directions for the distribution of your assets. Making a will is an integral part of inheritance planning and specialist advice is recommended, especially if your estate is large.
Unsecured Loans in the UK
Unlike a secured loan, an unsecured loan does not require you to have property to use as collateral for the loan. This type of loan is not secured against your assets, it is therefore more of a risk for the lending institution and more stringent criteria are used to assess applications. It is important that the lender can see evidence of a good credit history and earnings sufficient to meet regular loan repayments.
Lenders include high street banks and building societies but you may find that specialist lenders are able to offer a loan to you where the high street branches are unable to due to their less restrictive criteria or through their specialism in a particular type of borrower, e.g. the self employed, company directors, tenants, students or people with mortgage arrears, an adverse credit history and County Court Judgements (CCJ's).
Without onerous requirements for arranging security an unsecured loan is relatively quick to arrange and funds can be made available often within 24 or 48 hours of being accepted by the lender. The terms of the loan will reflect the risk profile of unsecured loans however and characteristically will allow lesser amounts to be borrowed and a higher rate of interest. An unsecured loan will usually have a fixed term and a fixed interest rate and is generally repaid monthly. Some lenders allow payment holidays and some will allow penalty free early repayment. Remember to shop around for the best unsecured loan deal.
An unsecured loan is therefore suitable for those looking to borrow up to around ?5,000 and who have a good credit history and obvious ability to make repayments. As the size of the loan is generally smaller than that of a secured loan the term of the loan will often be shorter, usually up to 5 or 10 years.
While security over your home is not required lenders often prefer homeowners to other borrowers. It may seem that an unsecured loan is less risky to the borrower as the loan is not secured against their house. In reality you should, as with any loan, be vigilant to meet your payment obligations because court proceedings used to recover outstanding balances will inevitably take your assets into account.
An unsecured loan can be used for a variety of purposes including for example buying a car, going on a holiday, home improvements or debt management and consolidation.
Lenders include high street banks and building societies but you may find that specialist lenders are able to offer a loan to you where the high street branches are unable to due to their less restrictive criteria or through their specialism in a particular type of borrower, e.g. the self employed, company directors, tenants, students or people with mortgage arrears, an adverse credit history and County Court Judgements (CCJ's).
Without onerous requirements for arranging security an unsecured loan is relatively quick to arrange and funds can be made available often within 24 or 48 hours of being accepted by the lender. The terms of the loan will reflect the risk profile of unsecured loans however and characteristically will allow lesser amounts to be borrowed and a higher rate of interest. An unsecured loan will usually have a fixed term and a fixed interest rate and is generally repaid monthly. Some lenders allow payment holidays and some will allow penalty free early repayment. Remember to shop around for the best unsecured loan deal.
An unsecured loan is therefore suitable for those looking to borrow up to around ?5,000 and who have a good credit history and obvious ability to make repayments. As the size of the loan is generally smaller than that of a secured loan the term of the loan will often be shorter, usually up to 5 or 10 years.
While security over your home is not required lenders often prefer homeowners to other borrowers. It may seem that an unsecured loan is less risky to the borrower as the loan is not secured against their house. In reality you should, as with any loan, be vigilant to meet your payment obligations because court proceedings used to recover outstanding balances will inevitably take your assets into account.
An unsecured loan can be used for a variety of purposes including for example buying a car, going on a holiday, home improvements or debt management and consolidation.
Subscribe to:
Posts (Atom)