How to pay less for your life insurance while securing a great product

If you are at a stage in your life where obtaining life insurance is important to you, it is likely that you will have a lot of other financial responsibilities too. Finding life insurance that will cover you for these responsibilities after you have gone, but is justifiable within your current monthly budget, is more important than ever whilst the economy is still at a low point. Finding a life insurance policy to suit your budget doesn’t mean that you need to make a sacrifice on the quality of the policy. There are several ways that you can reduce the cost of your life insurance policy without compromise.

Obtain quotes

Getting a range of prices and policy types is important whichever type of insurance you are looking for. It is no different with life insurance quotes. Be sure to check several different companies when looking for your policy. Don’t be fooled by comparison sites, 3 months free schemes or free gifts, as these are usually put in place to distract you from the small print of a policy.

List your Life Insurance Requirements

Compiling a list of figures and features that you need from your life insurance will help you to choose the right policy. If you have a special type of mortgage, you will need to make sure any mortgage life insurance policy you choose will cover your type of mortgage and fluctuations in interest rates if applicable.

Know your faults

Being aware of aspects of your health, lifestyle or financial situation that might affect your policy will help you to ensure you are covered and not paying more than you should be because of an abnormality in your situation. When looking for critical illness cover you may find a company that specialising in your health condition will charge less than a “one size fits all” type of policy.

Adapt your lifestyle.

If you are serious about getting the best deal on your life insurance policy, consider how a few lifestyle changes could reduce your risk to the insurers. Being a smoker is of course very bad for your health, and because of this your life expectancy will be lesser than a non-smoker and therefore you insurance policy will cost more.

Learn your life insurance types

Knowing about the different types of life insurance policies that are available will help you to be clever in your choice of policy types. Consider term life insurance, convertible insurance policies, investment life insurance or policies that allow riders, as these will all allow you to think ahead of the monthly payments and how much your insurance policy could back to you or your family later down the line.

A little research will go a long way, and taking the time over choosing the right life insurance policy will set you and your family up for life.

Tags: list, investment, financial responsibilities, little research, point, lifestyle

What can a landlord do when a tenant stops paying their rent?

that rental demand has increased by 15%. Despite this increase demand is still outstripping supply and according to their research an average of 5 people are competing for every one property.

With unemployment at around 8% (National Statistics Office, June 2011), banks enforcing strict lending criteria and general economic uncertainty, it is not surprising that demand for rental property is high. First time buyers can no longer benefit from 100% mortgages to purchase their properties, which leaves very little to inspire confidence. Ever-increasing living costs and spiralling inflation are added factors that cannot be ignored either. With new government initiatives only helping a small percentage of first-time buyers it is obvious why so many will have to rent for longer than planned.

This has left landlords with a positive outlook towards their investment properties with many of the cash-rich continuing to grow their portfolios. The demand for landlord insurance has therefore increased in recent years.

However, the life of a landlord is not always as easy as one may think. There are many reasons why problems might occur during a tenancy. One of the most common issues is tenants not paying their rent. Perhaps a perfectly good tenant might have lost their job and is finding it hard to pay the rent or a couple have split up half way through their tenancy agreement. In other circumstances, it’s fair to say that there are some tenants that were always going to be a problem no matter what.

When a tenant stops paying their rent they are not only in breach of their contract but they start to cause the landlord un-needed stress, mainly because chasing rent soon becomes a time-consuming process and the landlord may start to face financial difficulties. If this happens then the landlord should first write to the tenant and ask them to discuss the situation. The landlord should always try and resolve any issue with the tenant amicably, although clearly this isn’t always possible.

In many cases, the landlord may decide to terminate the tenancy agreement altogether. In such a scenario, a notice is served and then the court takes possession and finally ends the contract. This should be a last resort especially in cases where the financial difficulty may be a temporary one, such as the tenant losing a job etc. The landlord should try to offer and accept other modes of payment such as negotiating part payment terms for a temporary period until the tenant is able to find a new job etc. However, there may be cases where the financial situation of a tenant has changed drastically and receiving the arrears for the rent might not seem possible. In such cases, it is best for the landlord to ask a court of law to intervene and re-gain possession of their property so that they can let it out to a new tenant to avoid further losses. Because of the potential issues that may arise it is always advised that a landlord should speak with an insurance brokers about special cover that includes legal expenses and rent guarantee.

Tags: supply, property, positive outlook, court, financial difficulties, small percentage, confidence, investment

Downturn hits pensions savings

It has been suggested following recent research that the economic downturn and financial meltdown that has been seen over the past couple of years has had a serious negative impact on pensions savings amongst consumers in the UK. Many have found themselves struggling to make ends meet financially, and this means that they have had to make other financial sacrifices, which for some has meant their pensions provisions.

Scottish Widows, the pensions and life insurance provider, carried out the research and according to the results of the study there has been a fall of around 6 percent in pensions savings over the past year, with the total now falling to 48 percent. This is said to be the lowest it has been since 2006.

The study showed that 41 percent of people said that the reason that they had been saving less – or saving nothing in some cases – was due to the economic downturn. Women aged fifty and over were found to have been worst hit, and whilst 52 percent of women in this age group put enough money aside for retirement last year this feel to just 38 percent.

Officials from Scottish Widows said that the effects of the global financial crisis were only just starting to affect the pensions savings market even through the crisis began back in 2007. Many people were found to be failing to put any money aside at all for their retirement, including many of those that were nearing retirement age such as the over fifties age bracket.

An official from Scottish Widows said: “The whole nation is feeling worse off than a year ago and this is really starting to take its toll on pensions savings. While there are signs that the economy is recovering, the nation’s saving habits paint a very different story.”

Tags: investment, Pension, finance, scottish widows, retirement

Government moves to help the indebted

It seems that the government has decided to take drastic measures in order to help those in huge levels of debt according to a recent report. Read more

Tags: Lottery, debt help, debt relief orders, economy, report

Hikes in ISA limits result from budget

It was announced at the recent budget by Alistair Darling, the Chancellor, that ISA limits in the UK were being hikes, although savers will not see the benefits straight away. Read more

Tags: individual savings account, interest rates, society, ISA, added incentive, isa limit, cash isas, investment

Potential perks for A&L new customers

New customers signing up for a current account with the Alliance and Leicester could be in for a number of perks, after the building society launched what has been described as a current account war amongst banks by offering a range of incentives to get new customers to sign on the dotted line and open an account. Read more

Tags: order, current accounts, official, street banks, interest free overdraft, alliance and leicester, OFT court

Online banking ‘improves personal finance’

Eight out of ten consumers who regularly use online banking say it makes them better at managing their finances, according to research.

The survey from internet bank cahoot has found that 38 million Britons have used online banking.

People now spend more time conducting their financial affairs online than they spend on internet social networking sites, the study suggests.

Matthew Timms, cahoot’s managing director, said the credit crunch is making Britons take greater control of their finances.

He commented: “We’re flocking to internet banking, where we can instantly access and manage our finances at a time and location of our choice as well as pick up some of the best rates on the market.”

Last week, separate research suggested that one in five British men believes he is “careful” with his money.

In the survey, commissioned by Scottish Widows, more men said they identified with thrifty businessman Ian Beale from EastEnders than with any other soap character.

Tags: Grupo Santander, bank, business, character, internet bank cahoot, location, investment, britons

Repayment Vs Interest Only Mortgage

If you are on the lookout for a mortgage to purchase a property in the UK you could find yourself in something of a minefield, with a wide range of mortgages to select from, each offering a range of benefits to suit different needs and circumstances. However, all of these mortgages come under the umbrellas of either repayment mortgages or interest only mortgages. Read more

Tags: repayment mortgages, original mortgage, finance, debt, interest only mortgage, interest only mortgages, account, investment

NAPF: Pensions still seen as most important benefit

Workplace pension schemes are considered the most important benefit an employer can offer and it is expected that their up-take will increase in the future, the National Association of Pension Funds (NAPF) has said.

The Personal Accounts system is expected to be launched in 2012 and the changes in workplace pensions that it will bring about are expected to make them even more popular, according to the organisation.

Mark Brooks, a spokesperson for the NAPF, said: “There is a growing realisation that to enjoy a good standard of living on retirement, there is a need to have an additional pension…it is no surprise [workplace pensions] are still seen as the most important benefit.”

He said that tax advantages and employer contributions are two factors that make work pensions attractive to employees.

A recent survey by NAPF found that almost 49 per cent of respondents said they would feel greater loyalty to their company if a workplace pension was offered.

Tags: Association, important benefit."He, investment, respondents, employment, employer contributions

People should ask advisors about ethical investments, says UKSIF

Consumers considering putting their money into green and ethical investments should ask a financial expert for advice on the issue, the UK Social Investment Forum (UKSIF) has said.

This Saturday will see the launch of the first National Ethical Investment Week, which UKSIF hopes will help financial advisors improve their understanding of ethical finances so they can give their clients better information on the subject.

Penny Shepherd, chief executive of UKSIF, says people might make these investments because they want to encourage companies to behave more responsibly, or because they want to help fund solutions for a sustainable lifestyle.

“Our message to consumers is that there are a range of approaches – with the help of a financial adviser, understand what the range is and pick the one that works best for you,” Ms Shepherd said.

Figures from the Ethical Investment Research Service show that by the end of last year, a record £8.9 billion was invested in Britain’s green and ethical retail funds.

Tags: sustainable lifestyle, Social responsibility, uk social investment forum, ethical retail funds, financial expert, ethical investment research service, investment

Private accounts taken up for package rather than rate

Premier private bank accounts do not have a very high interest rate compared to high street banks and are often taken out for the additional benefits they provide, says an expert.

Samantha Owens, head of personal finance at Moneyfacts, said customers must have high balances to receive any credit interest, which would not be particularly high compared to other accounts.

However, she noted that people open premier private bank accounts because of the benefits they offer, such as investment advice and access to bank managers.

Commenting on who might find this type of account most useful, Ms Owens said: “People who are worth a lot of money, basically… They’re not really for people to just walk in off the street.”

Yet such accounts appear to be gaining in popularity, with Schroders reporting earlier this month that its private banking pre-tax profits were up 54 per cent with a net income rise of 11 per cent.

Ms Owens said that Coutts pays 0.15 per cent on a balance of £5,000 and offers free banking for customers who have over £2,500 in their accounts.

Tags: people open premier, investment, Private banking, bank account, Private accounts

HSBC matches rivals’ fixed-rate mortgages

Mortgage customers concerned about rising interest rates can breathe a sigh of relief as HSBC is extending its mortgage Rate Matcher offer to all UK homeowners.

Non-HSBC customers will be able to apply for the deal, available for the next five weeks, promising to match rates as low as 4.54 per cent for another two years.

Under the deal, which was originally only available to existing HSBC customers, the maximum loan will be £250,000.

“Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire,” commented head of mortgages at HSBC Martijn Van Der Heijden.

Customers will have to pay a fee which will depend on the interest rate and size of the loan requested, however the bank expects that 72 per cent of customers will not pay more than £999.

Many consumers may want to take advantage of this deal since the average fixed-rate mortgage deal is currently around 6.2 per cent, with very few deals below five per cent.

Tags: mortgage rate, term, investment, HSBC Martijn Van, Business Finance, maximum, rising interest rates, rivals

Consumers need to be ‘wary’ of introductory Isa offers

Consumers have been warned by a financial expert to tread carefully when considering introductory offers on individual savings accounts (Isas).

Bestinvest said that introductory offers emerge when an Isa product first launches, which means no one can know the track record of a fund manager or how well it will perform.

Adrian Lowcock, senior investment adviser at Bestinvest, said: “You have to be a bit wary of them, and know what you are getting into. We tend to recommend fund managers that have a proven track record.”

He added that that one way to get “good value” with a deal is to find an advisor who will offer a discount and charge a low rate of initial commission.

Figures released in November 2007 by HM Revenue and Customs showed that the amount of money saved in Isas has now reached £208 billion.

According to the BBC, the total value of Isas has risen sevenfold from £29 billion since April 1st 2000.

Tags: sevenfold, value, investment, november, bbc

Ethical consumer investment increases by 18% says survey

Up to 85 per cent of consumers expected to put their savings into an individual savings account (Isa) before April will use an ethical investment scheme new research claims

According to a survey from the Co-operative, this figure has increased from the 67 per cent who said they would invest ethically in the same survey last year.

The latest results show that nearly 80 per cent of respondents believe that ‘green’ investments can perform as well, if not better than mainstream markets.

Zack Hocking, head of investments at Co-operative Insurance, said: “While ethical investment still represents a small amount of the overall market, evidence strongly suggests that growth is set to continue.”

Mr Hocking added that the Co-operative expects increasing numbers of consumers to invest ethically as the deadline approaches.

Meanwhile, according to moneyextra.com, a survey from Nationwide estimates that savers in the UK could be paying more than £230 million extra in tax by not taking advantage of their yearly Isa allowance.

Tags: GBP, amount, expects increasing numbers, investments, head of investments, yearly isa allowance, investment, figure

Consumers must get into saving discipline

Consumers need to “get into the discipline of saving”, according to an independent financial advisor.

Colin Jackson, director of Baronworth Investment Services, has said that once a consumer gets into saving, it becomes part of general financial overheads.

“If you decide that you really must save every month it’s no good saying that you’ll put £10 in a building society account every month, set up some sort of saving scheme where it’s paid by direct debit,” he recommended.

Another tip for effective saving would be to work out what money is being put away for.

Mr Jackson advised that consumers should use a building society account for a holiday. An Isa would provide greater tax-free benefits if the money was being saved for retirement purposes.

Recent statistics showed that total UK personal debt at the end of October 2007 stood at £1,391 billion. The growth rate has increased to 9.7 per cent for the previous 12 months.

This equates to an increase of £122 billion.

Tags: investment, rate, personal debt, part, colin jackson, consumer

RICS states only rich can afford to be landlords

Officials from the Royal Institute of Chartered Surveyors have stated that in the current economic climate only the rich can afford to become landlords, with investment properties being made inaccessible to many people because of the high level of deposit that many lenders are now demanding.

According to reports the level of deposit required on buy to let properties has increased by 500% since 2002, with the average deposit needed now being around 30% of the property value, equating to an average of around £65,600.

In the first quarter of 2002, according to the report, only around 8% or an average £10,100 was needed to invest in a buy to let property. RICS officials state that the high level of deposit needed means that many potential buy to let purchasers have been put off or simply cannot afford to get their foot on to the buy to let ladder.

However, the Institute states that the situation could ease somewhat next year, with interest rates likely to fall and house prices likely to drop or remain stable. This could see an increase in the number of consumers deciding to invest in buy to let.

One economist from the Royal Institute of Chartered Surveyors stated: “It takes more capital than ever to set up a buy-to-let investment. Would-be investors who have missed out on the impressive returns of previous years are now finding the hurdles to property investment are higher than they imagined. However, existing landlords should be able to use the equity in their past investment properties to fund the deposit needed for new ones, and this should ensure that demand from the buy-to-let sector does not dry up entirely.”

Tom Smith
18th November 2007

Tags: landlord, Mortgages, surveyors, equity, deposit, buy-to-let, investment

Students urged to check cover

Students departing for university this month have been urged to check that their parent’s home insurance policy provides enough cover before buying their own specialist insurance policy.

Insurer Cornhill Direct explained that many parents do not realise that their home contents policy will usually offer sufficient cover for their children at university, making it unnecessary to buy a stand-alone student policy.

Mike Bishop, of Cornhill Direct, said: “We know from insurance claims we receive from parents that the university lifestyle can leave students vulnerable to theft from their rooms.

“These days, students take a lot of electrical kit to university such as laptops, Mp3 players and mobile phones, so they do need to be insured.”

A survey of 1,000 students also revealed that almost a third of students spend more time drinking and socialising than studying, although 41 per cent admitted that they do often feel guilty about this.

Home insurance policies from Cornhill Direct, Nationwide, HSBC, NatWest, More Than and Norwich Union direct all over cover for possessions in temporary student accommodation.

Tags: specialist insurance, insurer, Than, union, lot, investment, Mike Bishop, Mp3 players

BTL “stabilises” prices

Although borrowing costs are rising due to the five separate interest rate rises in the past year – which some say could lead to house market turbulence – the continuing strength of the buy-to-let market is providing much-needed stability.

That is the contention of Paragon, whose Buy-to-Let index for July was released today.

According to the index, rents have risen by just over three per cent over the past three months, boosting the annualised growth rate to 12 per cent.

This comes at a time in which the general housing market is widely recognised by analysts to be slowing.

Chief executive of Paragon Group Nigel Terrington, commenting on the new index, said: “Buy-to-let provides housing for young people, who otherwise would be forced to buy and be stretched beyond their means. It would result in dramatically higher levels of repossessions in the housing market.

“As owner occupiers are increasingly struggling under the weight of higher borrowing costs, buy-to-let landlords can provide accommodation for the growing number of young people who want a flexible lifestyle or who aren’t yet ready to step on the property ladder.”

Figures covering the first half of the year from the Council of Mortgage Lenders (CML) have also recently revealed that the buy-to-let market took up 12 per cent of total mortgages in Britain – a record amount.

Tags: rate, property ladder, Youth, Real estate economics, cml, investment, Nigel Terrington, landlords

Barclays must suspend penalty banking charges, judge says

Barclays Bank must not take penalty overdraft charges from their customers until the High Court has reached a verdict in the test case, it has been reported.

Judge Abraham, of Luton County Court, adjourned the case of Nadine Fry before the outcome of a test case in the High Court was revealed.

According to The Times he told the court: “until the expiry of the stay, no further penalty charges or interest on penalty charges should be debited to the claimants account by the defendant”.

Personal banking customers have been reclaiming bank charges recently as part of a widespread consumer revolt against the extra fees.

Barclays alone has repaid nearly £90 million in charges this year.

A spokesman for Barclays Bank said: “All county court judges are saying different things. This is why the banks are going to the High Court to get some clarity around this issue.”

The High Court’s ruling is expected in February 2008. A ruling in favour of customers could result in the end of free banking and losses of £10 billion for the banks.

Tags: luton, ruling, revolt, personal banking, court judges, county court, investment

NS&I pulls out of treasurers accounts

National Savings & Investments has announced that it will no longer be running Treasurer’s Accounts, which are designed for non-profit organizations and charities to make deposits.

The move means that around one thousand organizations and charities will have to find alternative accounts with other companies. No further Treasurer’s Accounts can now be opened with NS&I, and from August 10th no further transactions other than account closure can be made on existing accounts.

Launches in 1996, the number of Treasure’s Accounts and the amount of money invested in them has declined over the years. In 2003 there were 992 of these accounts running with NS&I, with total investments of £67 million. This has now dropped to 932 accounts with total investments of £61.3 million. Officials from NS&I state that it is necessary to make this move, as it is more cost effective for them to now concentrate their efforts on personal savings accounts.

Peter Cornish, director at NS&I, said: ‘The Treasurer’s Account has been in decline for some time which has prompted our decision to close the account. Banks and building societies offer similar accounts for non-profit-making organisations so there are plenty of alternatives available in the market place.’

He added that to continue offering this sort of account a substantial investment would need to be made, and that because of this it was no longer worth the company taking on these accounts.

Amongst those that have Treasurer’s Accounts with NS&I are various charities, and a range of clubs and societies, including youth groups, church groups, and other non-profit organizations. The accounts were thirty day notice accounts, with minimum investment levels of £10,000 and maximum investment levels of £2M.

Tom Smith
26th May 2007

More information: Treasurer’s accounts no longer available

Tags: bank, non-profit, accounts, alternatives, closed, investment

Youngsters buying to let

The buy-to-let (BTL) market in the UK is beginning to be dominated by people aged between 26 and 35 years.

It has traditionally been a market for older people but new figures from Mortgage Trust show that the youngsters are catching up.

Around 26 per cent of new investors who own one property are aged between 26 and 35, while the same age group also makes up 16 per cent of BTL investors with up to three properties.

This rise in numbers appears to be a fairly recent phenomenon, with the number of 26 to 35-year olds with up to three BTL properties rising from 14 per cent in the last six months alone.

“Traditionally buy-to-let has been perceived as something for the more mature investor,” commented John Heron, managing director of Mortgage Trust.

“However, recently we have been witnessing an increase in the number of younger professionals choosing to make a considered and long term investment in property.

“We are seeing a new generation of young people who are preparing for the future by making long term financial plans. New landlords are looking at an investment that will see them safe for the long term – possibly even into retirement,” he added.

As many younger people struggle to put money into a pension scheme, investing in property and then renting it out is a great way to ensure financial security for the future.

Tags: new figures, long term investment, future, increase, investment

Happy birthday Banking Code

Today (March 16th) marks the 15th anniversary of the UK Banking Code.

The code is voluntary but sets out the standards for good banking practice which financial institutions should use as guidelines when dealing with customers.

Once a financial institution has subscribed to the code its compliance with what is set out in it is monitored by the Banking Code Standards Board and the code itself is monitored by regulators and consumer groups to ensure that it is up to date and fair.

This regulation, says the British Bankers’ Association (BBA), is what makes the code so strong.

“Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service,” said Angela Knight from the BBA.

“As one of the three trade associations sponsoring the Banking Code we are proud to be celebrating its 15th birthday.

“The members of our three trade associations include banks, building societies and credit card issuers so we see the issues that are affecting our customers and we see how the industry responds. The Banking Code gives us a way of setting real obligations and real benefits for customers,” she added.

The code, which is jointly owned by the BBA, the Building Societies Association and Apacs, the UK payments association, is formally reviewed every three years.

Tags: Angela Knight, Economy of the United Kingdom, payments association, anniversary, finance, british bankers association

Buy-to-let is growing

The buy-to-let market is set to grow in 2007, with the latest figures showing that around one fifth of mortgages will be taken out on homes which will then be rented.

According to Birmingham Midshires, the UK’s biggest buy-to-let mortgage lender, the coming year is likely to see a surge in lending for buy-to-let properties.

The lender carried out a survey of around 2,000 Britons and found that people of all ages are now looking to buy a property as an investment.

It found that 40 per cent of people in their 20s want to invest in a buy-to-let property at some point during 2007, while a quarter of single parents also want to do the same.

“The buy-to-let market has grown consistently over the past decade. When you consider the returns available, in terms of both capital appreciation and rental yield, it’s easy to understand why property investment continues to grow in popularity,” said Tim Hague from Birmingham Midshires.

“A growing number of people see property as an important part of a balanced investment portfolio.”

The buy-to-let market has consistently out-performed other investment opportunities in recent years and, with weekly rents having increased by 1.3 times the rate of inflation in the past ten years, it is understandable why many people are choosing to buy in this way.

Tags: britons, buy-to-let market, investment portfolio, Birmingham, Business Finance, investment, point

Brits missing out on ‘current account revolution’

The majority of people fail to switch their current account, despite being able to take advantage of better offers.

Research, carried out by Abbey, shows that 60 per cent of Britons have held the same current account for at least ten years, with 18 per cent having never switched.

The bank says this is despite seeing interest rates with some banks soar and is the result of misinformation on the customers’ part.

Abbey looked into the reasons behind the lack of movement and came back with some surprising results.

Of those asked, 65 per cent said that switching account is too much hassle, although research shows that 90 per cent of switchers found it either ‘very easy’ or ‘fairly easy’.

Almost half (49 per cent) said that they thought all current accounts are similar, this is despite the fact that the difference between the best and worst credit interest rates is 5.9 per cent.

Abbey also found that 16 per cent of people think that it is impossible to move your overdraft to a new account. In fact, overdrafts of £5,000 or less can be matched, with some banks offering an interest-free period.

“Myths and misinformation are stopping people from joining the current account revolution,” said Steve Shore, head of banking at Abbey.

“The difference between the best and worst rates is significant, and customers can greatly benefit from switching to a better rate.”

Tags: new account, investment, overdraft, bank, hassle