Posted by admin on May 28

Critical Illness Cover and Income protection are often compared against each other. There are, however, vast differences between the two.
Critical Illness cover is lump sum protection in most cases. The benefit is either decreasing in line with a repayment mortgage or level where the same amount of cover would be paid out within the term of the policy. The cover itself is defined in that only certain illnesses are covered which are clearly displayed in the key features document. The illnesses covered vary from provider to provider but it is worth comparing them as some providers will have up to 12 more illnesses covered than others.
Income protection is what it says it is. If you cannot work due to accident or illness then a replacement income is paid to you each month or week. The income is paid to you tax free and can increase each year in line with the retail price index. There are maximum benefits claimable which vary from provider to provider but generally the maximum is 60% of your original income before illness. This, of course, is tax free. There are very few exclusions to an income protection policy in that they pay out for any accident or any illness which stops you from working. The two highest claim areas are stress and back injuries.
So looking at the differences most people would ask which is better? Which one should I go for? The answer is both. Imagine an illness that stops you from working permanently.
The critical illness policy pays out a lump sum which could be used to pay for additional treatment, make alterations to the house, pay off the mortgage etc. The money won’t last forever but you cannot work and you have also lost an income. An income protection policy would continue to pay a replacement income up until the point of retirement, if you return to work, or death within the term, whichever is earliest. That replacement income could also be used to fund for a personal pension too.

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Posted by admin on Oct 22

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The world of finance is intriguing, full of opportunities and great rewards. However, many of the events that take place are such that they are not easily anticipated or managed. This leads many people to become reckless while others become complacent and these attributes are caused by the very nature of financial markets. No other walk of life is perhaps as filled with vagaries as is the financial markets. Clever financiers can make sizeable profits and they have to make use of financial mathematics as well as other mathematical tools of which statistics is a good example.

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Posted by admin on Oct 21

Commercial mortgages can be a very good way of expanding your growing business and spreading your payments over a long period. You can currently get interest repayments as low as 5.85%. When you also consider you can get up to a 90 percent loan to value and even 100 percent with additional security. What is even more encouraging is that you can take this out for up to a period of thirty years which means you can take the lean times as well as the good periods and not have to worry about losing liquidity. Many businesses use this type of financing to stabilise their business and take advantage the long term spread.
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