Why do I need Insurance?
Your insurance policy will pay
out a sum of money when an event
that you are insured against
causes a loss of some sort.
Primarily you need insurance
whenever:
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An
event could happen to
you and you would not
be able to afford the
outcome, for example the
filing of a lawsuit against
you. |
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Whenever
the law says that you
must have it, for example,
motor insurance. |
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You
want to provide for someone
in the event of your death,
who couldn't manage financially
without you. |
The state does provide a limited
number of insurance benefits
but they are low and require
that you pass a number of tests
before qualifying for them.
What affects the
level of my Insurance Premium?
Insurance companies base their
premiums on a whole range of
factors. Data and statistics
related to these factors are
analysed until the risk associated
with almost any situation is
known. It is based on this calculation
of risk that an insurance company
charges you, the higher the
risk the higher the premium.
This is why it is often very
difficult to compare your insurance
quote with someone else to see
if you are getting a good deal.
Everyone has different circumstances
and thus will have different
quotes.
What
do I need to look for when buying
Travel Insurance?
There are two main aspects to
check when purchasing travel
insurance, the amount of cover
offered and the scope of the
cover. Insurers generally express
the amount as the maximum amount
that could be received. Below
is a general idea of what you
could expect.
Medical cover at least £1m,
personal liability £1-2m,
legal expenses £10-25,000,
personal belongings £1,000,
and cancellation £3,000.
The scope of the cover is just
as important, especially if
you are going on an activities
holiday, or one where you expect
to do sports that may be considered
dangerous. Certain things may
not be included such as off-piste
skiing, or skydiving. Policies
differ dramatically in how they
cover such activities.
Can I reduce my premiums
by increasing the security of
my house?
It is possible to qualify for
a discount on your house insurance
premiums by increasing the security
of your home. This deters burglars
and thus makes your house a
lower risk in the eyes of the
insurer. The sort of things
an insurance company will take
into account are approved locks
on all external doors and windows,
an alarm, and an active Neighbourhood
Watch scheme in your area. The
alarm must be designed and installed
by a company that meets the
requirements of the National
Approval Council for Security
Systems.
If increased security measures
have enabled you to get some
form of discount on your insurance,
then you must ensure that whenever
the house is empty, they are
used. If not, and your house
was broken into, the insurer
would have reason to challenge
the claim. Remember if you can't
find the answers to your specific
question please contact
us with your question or
to arrange an appointment to
discuss your personal circumstances.
What is the
point of taking out a mortgage
protection payment policy?
As indicated elsewhere, there
are two types of mortgage protection
policy. If you've got dependents,
a life insurance just in case
you die will keep the roof over
their heads. Of course, if you're
single you don't need to since
the lender can just sell the
property to get its money back
(providing you are not in negative
equity). On the other hand,
did you know that there were
nearly 25,000 repossession orders
in Q3 2009 alone. Many of these
are for those cases where the
homeowner could not keep up
the repayments because he was
out of work. So, if you become
redundant or unable to work
through injury or illness, a
policy to pay your monthly mortgage
expenses is just the thing.
* Source: http://houserepossession.co.uk
I'd heard
that the State will pay my
mortgage interest. Is this
right?
Potentially, yes, the state
may help you with the interest
payments for your mortgage
if you suffer a sudden drop
in income. This does not include
capital repayments, and the
availability of this benefit
depends on your circumstances.
Financial protection products
can guarantee that your mortgage
payments (interest and repayment)
will continue to be met if
you are unable to work due
to accident sickness and or
unemployment. For more information
click here
or please call.
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Hedgelands Financial Services,
Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
Hedgelands Financial Services is a trading name
of Honister Partners Ltd. Honister Partners Ltd
is an appointed representative of Sage Financial
Services Ltd, which is authorised and regulated
by the Financial Services Authority. Sage Financial
Services Ltd is entered on the FSA register (www.fsa.gov.uk)
under reference 150452. The information and content
of this website is intended for UK consumers only
and is subject to the UK regulatory regime. The
FSA do not regulate will writing services and some
forms of mortgages and tax planning services. Honister
Partners Ltd Registered Office 1 Nicholas Road,
London W11 4AN. Registered in England and Wales
no. 06923303. |
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