Finance Blog » Finance and insurance

Money Saving Personal Health Insurance

hortoris — Fri, 27 Jan 2012 09:28:43 +0000

The good news is that in the UK you are able to benefit from the National Health Service and our welfare state.
The bad news is that there are some reasons you may still wish to insure your health.

Why You May Want Health Insurance

NHS waiting times may be too long and you may personally want the option of receiving treatment quickly.
You may prefer the choice and perceived standards that are available in a ‘Private Hospital’ with more bespoke comforts.
You may want a personal choice of hospital and/or specialists
If you need compensation for a period of ill health or to cover the extra costs of being treated even in an NHS environment then there are policies to compensate.
The whole family may need to be allowed to bypass lengthy NHS waiting times and receive appointments and treatments quickly.
Sporting injuries and homeopathic cures may be better provided for by insurance than the NHS.
Dental accident insurance covers some of the risks to your teeth that an NHS practice will wish to charge for.

Types of Health Insurance

Cover for private diagnosis, consultations, tests and scans, treatment and for aftercare is a full service health insurance package.
Many providers offer a menu of choice from the above services. You may opt for consultations only or just treatment or variations depending on the insurer/service provider
Group health cover is often provided by employers or companies to help motivate their staff and get them back to work quickly if they fall ill.
Critical illness cover will be restricted to cover for listed illnesses and pay a lump sum of monthly income after confirmed diagnosis.
Travel insurance generally has health insurance benefits for those who need to pay for treatments whilst abroad.
Hospital funds are forms of saving that pay out lump sums for hospital stays or treatments such as dentures and glasses.

Saving Money on Health Insurance

The biggest saving is by not spending anything on health insurance. Throw yourself on the NHS like 92% of the UK population.
Second alternative is to self insure. This is to buy private treatment from your own funds when the need is urgent. This can work well for using ‘consultants’ and physiotherapists.
The larger your agreed excess and the more the acceptable exclusions the cheaper your policy should be.
Shop around there is a range of providers and products on offer. Match your likely needs and cover, try not to go for a high a spec policy.
Joining your employers scheme can get the benefit of buying in bulk. If the employer is willing to foot the bill yo get away almost free except it is a taxable benefit in kind.

Our Comments on Health Insurance

Providers include AXAPPP, Aviva, Bupa, Simplyhealth HSA, Healthcare, WPA, Benenden Healthcare and PruHealth.
Policies can also be bought retail through brokers or companies such as Tesco.
It is easy to over insure, paying for something you will not use even if needed. 999 emergency calls will most frequently be NHS
All policies have exclusions, some are many and various and widely scoped.
Many policies are provided by hospital groups that may restrict your treatment choices.
See Insurance for the over 50′s

Finding the Cheapest Insurance Quotes

Tejvan R Pettinger — Sat, 19 Nov 2011 23:35:34 +0000

Tips for Getting Cheapest Insurance Quotes

Don’t assume your current provider will be the cheapest for next year, always check a variety of providers once a year.
A few weeks before your term ends check on an insurance comparison site for the best quote.
The time taken to search a new deal will nearly always be worth the savings you make. Insurance firms rely on customer inertia to make their profits – This means charging loyal customers more than new customers. Don’t let them charge you a higher price. Make sure you move to the cheapest deal.
Ask your current provider to match your new quote.

Compare the Market

Compare the Market is a site designed to provide the easiest way to find the cheapest insurance quotes. The site is easy to use and automatically enables you to search the leading insurance firms. This is much easier than visiting each insurance site individually. Generally, it takes less than 4 minutes to search the different insurance firms. There is no cost for using the price comparison services. – (The firm will gain a small % from the Insurance firm, who sell a product through them)

Compare the market offers most types of different insurance including; car insurance, pet insurance, van insurance, home insurance and Travel insurance

The Site offers a variety of other resources for reducing bills and getting best deals. This includes resources on switching utility providers. I recommend checking an online search provider once a year to make sure you take advantage of changes in prices and new discounts offered. It is one of the best and easiest ways to reduce your electricity bills.

Online Insurance Quotes at Compare the Market

Cheapest Is Not Always Best

Compare like with like – that means ‘the terms’ of the insurance should be the same
Check the policy and the fine print before buying only on price.
If all things are equal go with a name who has a reputation to protect
On some car insurance if you have a claim for a write-off the insurance policy is then cancelled! not the cheapest then if you have to start again.

This is a sponsored post.

Who are Baby Boomers

hortoris — Sat, 22 Oct 2011 15:47:27 +0000

What Is a Baby Boomer

If you were born born between 1946 and 1964 you qualify as a baby boomer.
Baby boomers were born during the demographic Post-World War II baby boom.
You would have been brought up in the post war years particularly enjoying the freedoms during the 1960′s and 70′s.
In 2011 baby boomers will be between the ages of 56 – 65

What Sets Baby Boomers Apart

Five or six decades of improving living standards have been enjoyed by baby boomers.
Cultural changes have been significantly to the benefit of baby boomers. More freedoms, more leisure more travel and more choice exemplified by entertainment and music from the 1960′s and after.
Western economy baby boomers have enjoyed a seemingly unbroken run of good luck.
In the UK free university education, high employment levels and good NHS medical services
Many were in at the start of the house price boom and benefited from cheap housing with tax breaks.
Even approaching retirement their good fortune continues with early retirements, and final salary pensions for many.

Baby Boomer Finances

Many baby boomers are part of an inheritance generation. Their frugal parents built up value in property and relied on careful expenditure in retirement leaving an inheritance for their children.
Baby boomers hold a large part of the countries economic wealth and are spending more freely than earlier generations.
Asset rich, through savings and pensions many baby boomers anticipate a long and wealthy retirement unlike their children who may suffer from the economic issues surrounding an aging population.
Issues may arise to fund future health matters and fill gaps in pension provision.
Having enjoyed several decades as active consumers baby boomers may need to become more pragmatic on expenditures.
Many new financial products are aimed at the baby boomer market and as long as they apply ‘caveat emptor principles’, baby boomers look set to benefit.
Inheritance tax planning may be the only key issue for this generation to resolve.

Insurance Over 50 and Later in Life

hortoris — Thu, 16 Jun 2011 07:54:34 +0000

Who decreed that the over 50′s warranted special insurance?
It’s marketing Jim but not as we know it (apologies to Star Trek)

From all the adverts you would think Insurance over the age of 50 was going to be a doddle. As ever, there are many risks to consider and a multitude of ways of covering or insuring that risk.

Insurance Products for Later in Life

Long Term Care is potentially very expensive. Residential homes may cost less than nursing homes but even regular home visits can eat into income and capital reserves without insurance.
Medical care for joint replacements, heart problems or other issues needing hospitalisation can disrupt retired life. With waiting times for some operations far too long it is worth considering private health care insurance.
Travel and holiday insurance becomes more expensive with age and pre-existing conditions.
Home Insurance for buildings and contents is offered by some specialist brokers for the over 50′s. The premiums may be quite low as the risk profile is lower. (Lower claims from older folk who may be at home more often).
Funeral Plans take care of funeral costs and arrangements in advance. They are easy to understand and arrange and by pre-paying you beat inflation by freezing funeral costs at today’s prices. The Co-op and Age Concern run these plans.
Over 50′s Plans are a life assurance product that pay out a lump sum on your death. Unlike pre-paid plans, your family will have to arrange your funeral.
Saving, Endowments and Inheritance Tax Planning schemes are often targeted at the over 50′s.

Guaranteed Over 50′s Plans.

Intended to be low cost saving substitutes, ‘only 20p a day’ runs one advert.
Premiums should be fixed as is the guaranteed payout.
May be suitable to pay for a funeral but more flexible than a funeral prepayment.
Sold aggressively using aging celebrities like Michael Parkinson.

Issues to be Considered
- Many offer free gifts or vouchers as an incentive. You pay for this in the premiums.
- If you die in year 1 or 2 of your plan payout may be nil or restricted.
- If you cancel your plan or stop paying your premiums you won’t get back any premiums you’ve paid and your cover will end. Otherwise you pay until you die.
- Premiums paid might be more than the cash sum paid when you die .
- Your amount of cover is fixed when your plan starts and doesn’t change. It won’t keep up with inflation.
- Payment normally goes to your estate. Inheritance tax could be payable if your total estate is worth over £325,000.

Whole Life Policies for IHT

Special policies to cover Inheritance tax (IHT) can be complex affairs.
Larger sums than the basic over 50′s plans are generally covered.
Policies should have a surrender value.
Policies are generally reviewable so you can increase the cover for a larger premium
The insurer can seek to increase the premium or cut the benefits because the investment is under performing against wildly optimistic growth forecasts.
The cost of the life insurance element of the plan can start eating into the savings element where the insurance premium is increased by age and was not fixed at the outset.

Comments From Finance Blog

Read and understand the small print. Get your understanding confirmed in writing.
If you doubt the product will deliver what you want do not buy it.
Only buy special over 50′s deals if you need the product!
Only buy over 50′s products if they offer the best overall deal on the market

Review of Travel Insurance 2011

hortoris — Sun, 29 May 2011 16:43:10 +0000

Risks are ever present and that is why we take out insurance. Recent events that make us more conscious of those risks include : Middle East political unrest; Volcanic eruptions particularly in Iceland; Extreme weather around the globe including fire, tsunami and tornadoes; holiday company crashes; pandemic and heath risks plus possible terrorist threats.

Personal circumstances may also change so it is worth reviewing your travel insurance from both a cost and a cover point of view.

Natural Events

Will you be insured if your flight is delayed or canceled due to ash clouds or natural disasters?
- The answer is a bit of a lemon. Air space closure cover is offered as an extra on some policies.
- On single trip insurance delayed flights generally pay ‘waiting at the airport’ costs but it may be restricted to £100 or less.
- Annual policies are slightly more likely to offer food costs whilst waiting at the airport if your airlines do not.
- Separate bolt-on cover for volcanic ash delays and cancellations may now be needed.
Check your policy and go to companies that offer the most generous wording.
If you have to cancel or abort your trip you will only be covered with air space closure cover and most insurers require check in to be able to claim under travel delay sections of policies.
If you are stuck abroad you will need written confirmation that your flight was canceled.
Under European law, if you are planning to fly from within the EU an EU-based airline it is obliged to let you cancel your booking and get a refund or rebook on a different flight.
With volcanic eruption being in the news it is worth noting that many insurance claims from the last eruption are still unsettled.

Political Events

There is no particular change to travel insurance to cover these risks.
Check with the foreign office before travelling to know hot spots, as the advert says ‘you know it makes sense’. ‘The Foreign & Commonwealth Office’s Travel Advice Notices aim to ensure that British travellers are well prepared before departure.’
Escaping from UK politics to live abroad may involve reconsidering all your insurance policies to cover your new circumstances.

Health and Age Travel Insurance Issues

Some travel insurers stop cover when you reach your 65th birthday. Others just bump up the rates.
Which magazine recently discovered ‘a 74-year-old would pay £383 for an annual worldwide policy with Rias. Yet a year later, aged 75, this would cost £707 – a price hike of £324.’
Shopping around is not as easy due to the reduced number of insurers but is still essential
Pay per day policies may suit those with pre-existing conditions. The base premium covers delay and cancellation then there is a cost per day that you remain away from home.
For those over 80 the options are minimal. The following may issue cover; Co-operative Insurance Home Option, Castle Cover and Age UK

Why Arrange Cover

A good policy will cover you for cancelling or cutting your holiday short in an emergency such as sudden illness or bereavement.
You can make a claim if your property is lost or stolen.
The main reason for travel insurance is to cover your medical expenses should you become injured or sick while on holiday.
Medical cover is a particularly important for anyone planning to visit the USA or a country with no state health service.
Carry an European health insurance card when you go on holiday within the European Economic Area. This provides the local national health equivalent and you can get a free card and information in the European Health Insurance Card advice guide.

How to Arrange Cover

The best deals may be found by searching the internet.
Banks often offer travel insurance as a perk for using a premium current account.
You will probably be offered insurance when you book your holiday even if it is on a low cost airline. This is one way the operators and travel agents make money, so beware.

Sources

Which magazine

Foreign and Commonwealth Office

Mortgage Insurance Types and Cover

hortoris — Thu, 26 May 2011 15:58:33 +0000

Insurance is a form of protection created by spreading risk. So you insure your car against accidents or your assets against theft and damage. When linked to debt or mortgage there are several types of ‘mortgage’ insurance policy to consider.

Types of Mortgage Insurance

Mortgage insurance also known as mortgage indemnity guaranty is an insurance policy which is designed to compensates lenders or investors for losses arising from the default of a mortgage loan. It is sometimes practical to top slice the insurance cover when the deposit is too low.

Mortgage insurance is predominantly paid for by the borrower. Behind the financial smoke screens lender-paid insurance, reinsurance and some prime debt swaps have been used to spread risk.

Mortgage insurance protection promises to make repayments on your mortgage in the event of accident, sickness or unemployment (ASU) hitting your income. Other related expenditure such as buildings insurance can often be included in the policy.

Unemployment Protection Cover can also be referred to as mortgage payment protection and will provide you with an income to meet your outgoings. This insurance policy aims to pay out a monthly benefit if you are off work sick, have an accident or are made redundant.

Critical Illness life insurance cover is an insurance product, where the insurer is contracted to make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy. This can be used to repay a mortgage and reduce stress.

Term Life Insurance is normally used to cover an interest only mortgage only paying out on death during the period of a mortgage. Decreasing Term Life Insurance reduces progressively with a repayment mortgage as the amount outstanding reduces.

Issues to Consider

You are in the best place to take a view on these forms of insurance to fit your own circumstance. Factors to consider include the reaction of your employers to redundancy and sick pay. Who will suffer in each set of circumstance eg life cover may be more important when young children live at home.
Joint incomes can be covered but divorce or separation is likely to excluded in most policies.
Enforced time at home to look after terminally ill relatives may be included but not if there are pre-existing health issues.
A grant of a mortgage may be conditional on having some insurance. This was prevalent when I first took out a 95% mortgage when the 15% had to be insured against all risks to bring the lenders exposure down to a maximum 80%.
Reducing term life worked in my circumstance and luckily I needed no other cover.

Rules and Regulations

This part of the insurance industry is not heavily regulated so we suggest you deal with a reputable or substantial organisation. There are controls on mis-selling and several investigations are ongoing.
A normal condition of the policy is that ‘The Benefit Period’ is defined from the outset and is the length of time you can claim monthly payments. You can select the time period you want to be covered but the longer you want the cover the more expensive the premiums.
Most policies will have an excess or waiting period. You need to read and understand any exclusions in the policy.
If you are insuring Income Protection for loss of income due to ASU you may find the payout is ring fenced so you are forced to make the mortgage repayments first before other spending. Mortgage Protection may have the money paid direct to the lender.
Generally Government support schemes are hard to access and only ‘kick in’ after a waiting period.

Short Comments on Related Matter

Endowment mortgages build up capital to repay the loan at the end of the period. They are often provided by insurance companies and include some lender protection.
Buildings and Contents Insurance is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.’ Beware a partial loss in a fire can be very expensive to rectify, do not under insure but cover the full value of your home.
Caveat Emptor or buyer beware. The finance industry makes good profits and are expert at parting the unwary from their cash. If you have read this far you are starting to prepare yourself to take your own informed decisions.