Yarner Trust

Why Is Income Protection Useful?

admin — Wed, 25 May 2011 10:23:06 +0000

Income Protection or IP is a specific type of insurance policy that pays out an income, tax free, if the policyholder becomes unable to work due to sickness or disability. The policy usually pays a benefit depending on an agreed percentage of your salary. This is generally between 50 to 60 percent. These policies begin to pay out after you have been out of work for a set period of time. This is called the “deferred period”. The policy will then continue to pay out until the policy term is completed. This varies, but usually means retirement. When deciding upon a deferred period, you can pick between 4 weeks, 13 weeks, 26 weeks or 52 weeks. Your choice is dependent upon how long your employer is willing to offer sick payment; as well as how long you can live on any savings you have accumulated. The longer the deferred period, the cheaper the policy will be per month. When deciding whether to invest in Income Protection it is helpful to assess your circumstances, and how these would be affected in the event of sickness. Some employers are willing to pay a percentage of their employee’s wages for an indefinite period of time – in which case, Income Protection probably wouldn’t be needed. If this isn’t the case, do you have enough savings to cover bills, rent, etc.? This is exactly the kind of situation that an IP would benefit as serious illness or accidents are never planned and can happen to literally anybody.

What is Mortgage Protection Insurance?

admin — Wed, 25 May 2011 10:22:37 +0000

Mortgage Protection Insurance (sometimes known as Mortgage Payment Protection Insurance or MPPI) is a form of insurance that covers your monthly mortgage repayments if you become unable to work or become unemployed. While MPPI is not compulsory when taking out a mortgage, it can be used as a specific condition on some loans. It is advised that all mortgage holders consider this kind of protection as unemployment can often come out of the blue. Even more so if you are financially stretched – unemployment could pose many problems, not only trying to pay the monthly mortgage, but other financial responsibilities too. The best kinds of Mortgage Protection begin to pay out after just one month or either sickness or being made redundant. They usually go on to pay for up to 12 or 24 months, depending on the specific policy. These time constraints are there with the expectation that someone will have found a new job or recovered from whatever illness in that time. There are some situations to be aware of that MPPI will not pay for. Such as medical conditions you were already aware of, regardless of whether it was found by a doctor or not, from the date the insurance was taken out. Also medical conditions that last more than a year or come back during the primary 12 months of the policy are not covered. While pregnancy is not covered, medical complications during pregnancy are paid out. Other reasons why insurers will not pay out include losing a job by resignation, voluntary redundancy or dismissal due to misconduct.

The Different Types of Income Protection

admin — Wed, 25 May 2011 10:22:08 +0000

Income protection (IPI) is designed to protect earnings should you become unable to work because of sickness or an accident. Should either of these instances occur, policy holders would be paid an amount of benefits to help during their non-working period. There are various kinds of income protection available: A Renewable IPI is a policy that can be renewed after a period of time, often to allow for an increase in potential payment. This is determined by the set premiums for a person of a certain age in a specific job. To begin with, this type of policy is usually cheaper, with the cost rising in correlation to the policyholder’s age. A Reviewable IPI is the same as a fixed policy, however the premium value is checked and perhaps changed (usually decreasing) every so often. These changes not based on the age or occupation of the policyholder, but instead the insurance company’s general rates. For this reason, premiums are generally a little less costly than for a regular policy. An Increasing IPI is designed to grow in relation to inflation, as opposed to ordinary policies that suffer somewhat of a loss when inflation occurs. The rate at which the policy increases is determined by a pre-agreed percentage, an indexed rate or a rate established by the policyholder and insurance company. Due to the benefits of such a policy, the premiums generally get larger. Some employers offer a Group IPI for its employees. This differs to the other kinds, as it would end along with termination of employment.

What Does Mortgage Protection Mean?

admin — Wed, 25 May 2011 10:21:10 +0000

When anybody loses his or her job, the main concern is money. Bills need to be paid regardless, especially ones as important as a mortgage. This is often the biggest outgoing of a salary, so in turn, the hardest to pay during unexpected unemployment. This is where Mortgage Protection comes in. The insurance policies designed to help in these situations are called Mortgage Payment Protection or MPPI for short. Mortgage Protection is usually offered by mortgage providers during the initial taking out of the mortgage. Whilst it can seem to be an unnecessary “extra”, it is in fact quite important, and sometimes compulsory dependant on your loan provider. With unemployment becoming a major problem in today’s job market it is really important to ensure you can pay for certain expenses, even in the worst case scenario. With payments being released just a month after losing a job, Mortgage Protection is definitely the best way to secure your house. These payments can continue up to a year, or in some instances, two years. The length of time is set this way as it is feasible to expect someone to have found a new job or recovered from illness during this time. Be sure to check the conditions of an MPPI before signing. Most will not pay for pre-existing conditions, even ones undiagnosed by a doctor. Illnesses or conditions lasting more than a year are not covered, nor are reoccurring issues during the first 12 months of the policy. Pregnancy is not classed as an illness or condition, so is not paid out for either, however medical complications arising from pregnancy are.

Income Protection for the Self Employed

admin — Wed, 25 May 2011 10:20:40 +0000

Income Protection insurance for self employed individuals has always been a topic of great controversy. The problem occurs when insurance companies try to establish just how much to pay out to a self employed person. Most freelancers or self employed individuals experience noticeable increases and decreases in their pay, sometimes rather extreme. To ensure an appropriate amount is being paid the person in question may have to go through a lengthier process than usual should they become sick or injured. The amount to be paid is typically based on the gross profits, before tax and after trading expenses have been removed for the last 12 months leading up to illness or injury. These Income Protection policies differ from regular policies in a couple of ways. Firstly, as mentioned, the way in which the policy is calculated. But secondly, the length of the policy’s payment period. Self employed policies usually last only three years. This is due to the often erratic nature of self employed earnings. Having some form of Income Protection when you are self employed is incredibly important. Employed individuals often have certain benefits that automatically put them in a more secure position should anything happen to them. For example, a lot of employers offer sick pay – a percentage of a employee’s wages for a set length of time. While this is not always a permanent benefit, some employers do offer this with no time limit. As a self employed person you only have yourself to fall back on, making Income Protection especially important.

Prestige car hire

admin — Thu, 12 May 2011 14:33:16 +0000

Prestige car hire is now becoming more frequent with business owners and tourists wanting to travel around the UK in the most luxurious cars in the market. With this there is competition from the main sports car hire companies and therefore the prices can often be quite reasonable. Whether you want to impress a lady or potential business partners there is always a reason for hiring cars of such high value. The style of the Bentley or power of the BMW are always attractions both men and women cannot seem to ignore. The amazing this is that all that is required for prestige car hireis a valid UK or European driving licence and cash to pay for the rental. Insurance and MOT and all other costs are normally included in the package for car hire and extras are normally highlighted prior to driving off from the forecourt. Book online and normally the best deals and discounts are available.

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admin — Tue, 26 Apr 2011 20:16:36 +0000

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