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: little research, point, investment, health lifestyle, list, lifestyle, financial responsibilities, life insurance policy

Banks may offer more competitive deals than brokers

A recent report has shown that banks in the UK may be offering more competitive mortgage loan deals directly rather than through brokers, which means that consumers that go through a broker could find that they end up paying more than they would if they went directly through a lender in some cases.

Direct providers and banks are said to be offering highly competitive mortgage loan deals to try and stay a step ahead of rival providers, and this means that going through a broker could end up being more expensive. However, brokers have stated that if consumers choose to bypass them they could end up missing out on a range of specialist deals.

Some mortgage lenders such as the internet banking giant First Direct, which is part of the HSBC group, have decided to bypass brokers altogether for their deals. Officials from First Direct have said that there is no need for the company to go through brokers when they are able to offer such competitive deals direct to the consumer.

However, brokers claim that there are a number of reasons why consumers should go through a broker rather than direct to a bank, such as the diminishing number of people that now qualify for banks’ deals, and the fact that whilst a particular bank may be offering the best rate at one point this can quickly change.

One broker said: “First Direct and HSBC may have the best deals today but this can change and, besides, the number of applicants who will actually qualify for the banks’ criteria of three times income, a squeaky-clean credit record and large deposit, is fast diminishing. The reality is that most cases are not this easy and will require the expertise and contacts of a mortgage broker.”

Tags: finance, Mortgage broker, Business Finance, broker, point, consumer, bank, fast diminishing

Getting your dream home whilst house prices are down

For most homeowners the fact that property prices have been plummeting over the past year is not good news, as many people who saw the value of their homes rocket in the past decade have now seen equity levels coming back down by significant levels as house prices have spiralled downwards. However, the house price falls are not bad news for everyone, as those looking to purchase a property can now get their dream home for far less than they would have paid last year, making tens of thousands of pounds difference in some cases, and with higher priced properties even more. Read more

Tags: South-West, point, cash, Barnes, house prices

Base rate may have been in line for bigger cut

The minutes of the latest Monetary Policy Committee meeting have suggested that the latest base rate cut of 1.5 percent could actually have been even bigger, as there was room for the MPC and the Bank of England to consider a rate cut of more than 2 percent based on inflation projections. The Bank of England announced earlier this month that the base rate was being cut by a massive 1.5 percent, which was the biggest cut since 1981 and took the base rate down to just 3 percent. Read more

Tags: base rates, larger cut, point, Inflation report, bank of england, excess, MPC members, bank of america

Marked rise in repossession levels

A recent report has shown that the rise in repossession levels in the UK is resulting in around one hundred and twenty families a day being evicted from their homes. In the second quarter of this year it is said that one hundred and twenty families a day were losing their homes to repossession, which reflects a 70% rise compared to a year earlier. Furthermore, industry officials have predicted that this figure will continue to rise as the nation edges every closer to a deep recession and the global financial crisis continues to take a hold. Read more

Tags: repossessions, point, base rate, rate, credit, day

70 working days needed to pay off average debt interest, survey claims

People who borrow money using personal loans and credit cards need to work for an average of 70 days per year just to pay off the interest their borrowing accrues.

That is according to Unbiased.co.uk, which has proclaimed March 10 “Debt Freedom Day” to draw attention to amount of money consumers are having to pay just to service their debts – let alone pay them off.

Last year’s Debt Freedom Day fell on February 1, and this year’s date reflects the dramatically increased amount of unsecured borrowing British consumers are taking out.

Although credit card borrowing has fallen slightly from last year £55.6 billion to £54.9 billion from 2006 to 2007, the value of personal loans taken out has risen to £9.8 billion from £2.6 billion last year.

Combined with the effect of the credit crunch – which has pushed up the rates of interest charged on personal loans by an average of 0.5 per cent in the last year – debt and interest have soared.

Unbiased chief executive David Elms warned: “While Debt Freedom Day is of course a hypothetical point in the financial calendar, people should pay attention to it. In the current economic client is has never been more important for people to realise just how much it costs to service their debts and to ensure they have adequate funds available to do so.”

Tags: Credit Cards, economics, GBP, taken out, point, Unbiased

BIBA: Christmas holidaymakers should insure valuables and gifts

People planning to travel during the festive season have been urged to be extra careful to insure all of their valuables, including Christmas gifts.

According to the British Insurance Brokers’ Association (BIBA), holidaymakers should ensure they have adequate cover, especially as doing so is unlikely to break the bank.

However, Graeme Trudgill, technical and corporate affairs executive for BIBA, expanded on the point saying: “What you might have already is, under your home insurance, a personal possessions extension.

“In which case, you’re going to get a much higher limit under your home insurance than you are on any travel product, but also you don’t have to then have that section of the travel insurance policy.”

Research carried out on behalf of Halifax Travel Insurance last year showed that a staggering 2.5 million people leave Britain at Christmas taking with them £727 million worth of presents.

Furthermore, it found, average personal baggage claims go up by an impressive 48 per cent from its annual average of between £560 and £830.

Tags: personal baggage, season, point, case, personal possessions, holidaymakers

Rock plight highlights need for building societies

The difficulties of financial firm Northern Rock have underlined the difference between banks and building societies, it has been claimed.

According to Britannia, building societies are a the safer alternative and that could mean that the popularity of the institution could rise.

Commenting on the crisis Emma Taynton-Young, a spokesperson for Britannia building society said: “The recent market has actually strengthened the difference between banks and building societies, and we find it very easy to explain the difference now because it’s shown the effect of the opposite business model to ours.”

She added: “So in a way, yes, building societies are the safer option, and I think this answers the point as to whether the Northern Rock crisis will provoke a rise in the popularity of building societies.”

The firm also claims that the heavy restrictions placed on building societies contribute to the amount of confidence consumers have in them as institutions.

Tags: crisis emma, rise, Social economy, point, difference, britannia building society

‘No turning back’ for entrepreneurs

A large proportion of people in the UK who have struck out on their own would not want to return to doing a 9 to 5 job, according to a new study.

Research carried out by Abbey found that 77 per cent of entrepreneurs in Britain would never want to work for someone else again.

Those working in the East Midlands were the most satisfied with being their own boss, as 91 per cent wouldn’t go back to their former employer. More than half of those in Wales, however, would return to their old job.

“Running your own business can be tough but rewarding,” said Ian Wilson from Abbey.

“The benefits of running your own business obviously outweigh the negatives. Once people have taken the plunge they are unlikely to want to return to their old lifestyle no matter what problems they may encounter.”

As well as potentially challenging financial circumstances, entrepreneurs could face hurdles from a social point of view as well.

A spokesperson from the National Federation of Enterprise Agencies warned: “Running a small business can be a lonely occupation, especially to someone who has become accustomed to the world of employment and big organisations.”

Tags: social point, matter, Enterprise, National, employment

Barclays share prices fall

Rumours surrounding emergency loans allegedly taken out by Barclays Bank from the Bank of England have resulted in the bank’s shares taking a tumble. The UK banking giant recently saw its shares fall to their lowest level in two and a half years. In August rumours began when the bank is said to have taken two emergency overnight loans from the Bank of England. The bank has defended its actions, stating that the loans were due to technical difficulties, but with the crisis that hit Northern Rock still fresh in the minds of many it was inevitable that Barclay’s actions would eventually affect its share prices. Read more

Tags: loan, bank of england, United Kingdom, head of global retail and commercial banking, finance, point, recent additions, worth

Early 30s in most debt

People in their early 30s, known as the Friends generation, borrow more money than any other age group.

New research shows that they have the highest borrowing, including mortgages, and are more likely than other generations to miss repayments.

A study, carried out by Alliance and Leicester, shows that the Friends generation, named after the popular US sitcom, have an average unsecured debt of around £5,863.

That stands at 29 per cent above the national average and the fact that they often miss payments means that the situation is getting worse.

Alliance and Leicester does point out that the age of the Friends generation does not help their cause as many are now seriously making moves to settle down.

This means many are buying their first home, with 63 per cent currently owning a property.

“The early 30s are a transitional age where careers are taking off and before family responsibilities kick in,” explained Chris Rhodes from the bank.

“Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full.”

Things look much better for the so-called Club 18-30s generation, with fewer people in this age range having consumer debt.

It is not all rosy however, with student loans having a major affect on this generation’s finances.

“The picture for the under-30s is dominated by student loans,” continued Mr Rhodes. “A hangover of student debt is constraining their appetite for other borrowing and delaying their ability to get on the housing ladder.”

Tags: appetite, point, student loans, consumer debt, affect, chris rhodes

Homeowners anxiously await MPC’s decision

The Bank of England’s monetary policy committee (MPC) is to announce on Thursday whether it will raise, lower or maintain the base rate of interest.

While most analysts have predicted that the interest rate will have to rise another quarter point before this summer, analysts are in disagreement about whether or not April will see a rate rise to 5.5 per cent.

Stephen Smith, director of housing at Legal & General, said: “Borrowers will be waiting to see if they are going to be in the red or the black in the base rate roulette next week.

“Rates are still at a relatively low level compared to 70s and 80s and many people would struggle with today’s debts at yesterday’s prices. Whilst the boom and bust has flattened out since the turn of the Millennium, borrowers are still facing a probable hike in rates in the near future.”

Mr Smith warned that June and August were likely to hit those with mortgages hardest, since they were the most likely months for a base rate rise. He compared them to Park Lane and Mayfair on a Monopoly board as “you just want to get through them without having to pay out more money!”

The Council of Mortgage Lenders predicted that recent interest rate rises would start to have an affect on the value of homes and that while prices would still go up by seven per cent, this would be a marked deceleration compared to previous years.

Fionnuala Earley, Nationwide’s chief economist, also predicted that a rate rise would not curb the rising level of value in the property market, adding: “The UK housing market will remain fairly firm in the short term, partly because of the momentum built up in the market that will take a few months to work through, but also because of supply constraints.”

If an interest rate rise does occur on Thursday, homeowners with a £100,000 mortgage would find themselves £15 worse off per month.

Tags: bank of england, level, quarter point, rise, Nationwide's chief economist, base rate rise, Fionnuala Earley

London card holders redeeming £349

More and more people are using credit card reward schemes to make some money, with Londoners the best at taking advantage.

According to research by Goldfish credit card around 83 per cent of card holders in the capital have a loyalty scheme attached.

The study found that between November and January alone, 39 per cent of Londoners redeemed an average of £349 on their cards.

Most people saw this money in the form of vouchers, cash back or travel rewards, meaning card holders were given the extra bonus of having to spend it on a personal treat rather than clearing debts.

Although Londoners have been enjoying their rewards with vigour, it is a different story in the north of England, with fewer people claiming their rewards.

“Credit card reward schemes are a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points,” said Patrick Muir from Goldfish credit card.

“Savvy spenders should consider cards that offer them a tangible benefit or reward for their spending.”

The research also showed that women are more likely to hold a rewards-based credit card but men are more likely to claim the rewards.

Tags: point, benefit, scheme, way, Savvy, rewards."Credit card reward, london

Rics urges Hips postponement

The Royal Institution of Chartered Surveyors (Rics) has called for the introduction of home information packs (Hips) to be postponed.

The information packs, due to launch in 100 days, will give future buyers information estate agents might not see fit to disclose at the point of sale, such as local searches, sales statements and leasehold documentation as well as an energy performance certificate revealing their future home’s level of energy efficiency.

They are intended to encourage greater transparency in the selling process and slash the high number of sales which fall through each year.

Under current government plans, the information packs will become mandatory from June.

But Rics spokesman Jeremy Leaf insists comprehensive reform measures are needed to “sweep up all the problems with home buying and selling”, not just stop-gap solutions.

More seriously, Hips in their current form are irredeemably “depleted”, with “most of the stuffing removed”, he claims.

Meanwhile, the director general of the Association of Home Information Pack Providers (AHIPP) Mike Ockenden has staunchly defended the information packs, arguing that they would “greatly reduce the needless stress associated with buying and selling homes in this country”.

Tags: future buyers information, sale, home buying, year.Under current government, country, buying, government

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