Life Insurance

Why take out Life Insurance or Critical Illness?

The importance of life insurance or critical illness benefit may vary at the different stages of your life.

As a minor (under 18 years of age), you will have no financial commitments and few responsibilities. Protection insurance is not appropriate at this stage.

As you grow older you will progress through the stages of life – first job, moving out of the family home, living with a partner, buying a house, having children, buying a bigger house etc.etc..

Your requirement for life insurance and critical illness benefit will increase with added responsibility. It would be important for any debt (loans or mortgages) to be repaid on your untimely death and also to provide any loved ones left behind with sufficient money to continue living to an acceptable standard. Without sufficient insurance, the family home may have to be sold, with further upheaval at an already traumatic time.

Furthermore, you may suffer a critical illness that meant that you were unable to continuing earning the same amount of money that you have become accustomed to earning. Without protecting yourself adequately, you may have to sell your home and your life style may change to an unacceptable standard.

The cost of Life insurance and Critical Illness benefit will vary according to your age, whether you smoke, your medical history etc.etc… There is one factor that is certain though – the younger you are when you commence the insurance, the cheaper it will be, with many policies guaranteeing not to increase the premiums as you become older.

So act now as you never know what might happen tomorrow………..


Life Insurance Facts

Life insurance would be used to ensure that on your death, a lump sum is paid to either a specified beneficiary or to your estate.

This may be taken with a view to repay a debt, mortgage or loan and / or to provide a lump sum to enable your loved ones to maintain their current lifestyle after the inevitable loss of income.

Life insurance can be arranged on either a sole name basis or on a joint basis with another person.

Life insurance can also be arranged on either a “level term” basis, where the amount insured remains the same during the term of the insurance, or on a “decreasing term” basis, where the amount insured reduces over the term of the insurance – this would typically be used to protect a repayment mortgage.

There are further options that can be chosen on application:

“Waiver of Premium” this would “pay” your premiums in the event you were unable to work due to accident or illness.

“Increasing benefit” is an option that would allow you to increase the level of cover in the future, resulting in an increase in premium.


Critical Illness Benefit Facts

Critical Illness benefit pays out a tax free lump sum on the diagnosis of any one of a number of serious illnesses that would vary from one insurance company to another.
In general, they would include:

· Cancer
· Stroke
· Heart Attack
· Kidney failure
· Multiple Sclerosis
· Rheumatoid Arthritis

It can be used to repay a debt (mortgage or loan) or replace income during a lengthy period of illness.

The benefit does not have to repaid even if you make a full recovery and return to work!

Be aware of the high statistics in relation to being diagnosed with a critical illness:

1 in 3 men aged 30 will have a stroke, cancer or heart attack before their 65th birthday!

1 in 5 women aged 30 will have a stroke, cancer or heart attack before their 65th birthday!

BUY TO LET

With other investment returns continuing to fall, or to be less certain, the market for Buy to Let seems to be continuing to thrive, despite the general "slow down" in the housing market.

The concept of borrowing someone elses money, and having a tenant's rent pay for the mortgage interest, to make you money is certainly extremely sensible!

Tailored Mortgages specialise in this field and some key information follows with an example of how you can increase your wealth at the end.


BUY TO LET Mortgages are available with only a 10% deposit and sometimes with NO proof of rental / earned income!!

Tailored Mortgages charge NO BROKER FEES!

Many landlords refinance their existing properties to release capital to buy MORE properties!

Recession proof? – If interest rates rise, more properties will be repossessed, therefore there will be an increased demand for rental property, driving up the rental received!

We provide a full advice service – from a new landlord looking to purchase their first property, through to the experienced landlord with a substantial portfolio!

We can give advice on the best type of property to purchase, to ensure that you maximise your return!

In certain circumstances – buy WITH NO DEPOSIT!!




BUY TO LET EXAMPLE

Property purchase price £100,000
Mortgage £ 90,000

Interest cost / month 450
Additional costs 25

Total monthly cost 475

Rental received 500 / month

You will find that you will not make much (if any) money on a monthly basis – your return will be received in the capital growth.

With a 5% annual increase in property values:

£100,000 property after 5 years will have increased to @ £128,000

Your share will have increased from £10,000 to £38,000

That represents an increase in your capital of 380% in only 5 years !!!