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A Crash Course in Tarot for Newbies #1
The Tarot is not just a divinatory tool, but it can also be utilized in the appropriately trained hands as a tool for providing counsel and advice with which we can navigate life. It is an antique form of divination that predates popular psychology,...
Helpful Hints for First-Time Home Buyers
Buying a house can be a daunting task, even for someone who has owned several homes. My husband and I recently purchased our first home together, and it was hard to find good advice that we truly found useful. We had to learn a lot on our own,...
Life Insurance: Why There’s No Need To Be A Desperate Housewife
Contemplating what may happen to your wife (or husband) and children if you die is not likely to be a thought you wish to contemplate. However, avoiding the issue may make life more difficult for your family after your death. Life insurance looks...
SOME INITIAL THOUGHTS ON CREATING WEALTH
Myth no 1: Millionaires work 10 times as hard as the ordinary man in the street.
Number 2: Millionaires are more intelligent and better educated than you and I.
Number 3: Honest people don't get rich.
Number 4: You need money to make money....
Women, Retirement and Social Security
Which of the following are reasons that Social Security is especially important to women:
a) Women are less likely to have pensions when they retire. b) Women live longer than men, increasing chances of outliving their assets.
c) Women have...
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Life Insurance: Why There?s No Need To Be A Desperate Housewife
Contemplating what may happen to your wife (or husband) and children if you die is not likely to be a thought you wish to contemplate. However, avoiding the issue may make life more difficult for your family after your death.
Life insurance looks set to make a comeback in the UK, after a period of neglect by consumers who were simply occupied with affording a home. The stabilising of the UK house market has made many consumers take a broader view to their personal finances.
LifeSearch (a life insurance broker), in the September issue of Money Observer, highlighted a few common mistakes people make when buying life insurance:
* Believing life insurance is relevant to everyone
Life insurance is only relevant to people who have financial dependents. If you have no financial dependents, it might be more appropriate to consider income protection or critical illness insurance.
* Paying too much for life insurance
According to Money Observer, research for Sainsbury?s Bank Life Insurance revealed that many people take life insurance policies from their mortgage providers and as a result could be paying too much.
* Opting to buy joint life insurance policies instead of single life insurance policies
The advice to married couples is to avoid taking out joint life insurance policies which pay out when the first spouse dies over the term of the policy, but not on the second. Single policies could provide additional cover by paying just an extra ?3-4 a month.
* Missing out on a trust
The Tax Man can claim up to 40% of your life insurance payout as inheritance tax. According to Money Observer, those with assets totalling ?275,000 or more (including a house) are especially prone to tax inspection. Writing your policy in trust is a way to avoid this and as a trust does not have to go through probate,
beneficiaries of the policy will receive the payment without delay.
* Only insuring the main earner
Whilst it is important to cover the main breadwinner, by neglecting to additionally insure the housewife or househusband may result in extra child care costs. Family income benefit (FIB) may be an appropriate policy to put in place.
* Opting for a lump sum over income
If your dependents are likely to require an income, then buying a policy that pays out a lump sum is a mistake. Many people invest lump sums for an income, but when they invest it, they have to pay tax. Family income benefit provides a larger payout ? tax free, though the majority of banks and building societies do not offer FIB, so ask an Independent Financial Advisor for recommendations.
* Not proving full medical records or detailing comprehensive medical history
Failure to disclose a complete picture of your health, no matter how trivial, could invalidate a claim later on.
There?s no excuse for not conducting your own homework, as there is an abundance of information available online. Sites such as moneynet, provide not only price comparison research on difference life insurance products, they also offer downloadable consumer product guides. Lowermybills proffers a similar service stateside.
Resources:
http://www.moneynet.co.uk/insurance/life-assurance/index.shtml
(Prince comparisons) http://www.moneynet.co.uk/life-insurance-guide/index.shtml
(Life insurance guide) http://www.lowermybills.com/
About the Author
Rachel writes for the personal finance blog Cashzilla. http://www.cashzilla.co.uk/
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