April 10, 2012 at 9:49 am #14233AnonymousInactive
The stories of Yvonne and Sue, who were kind enough to allow some of their details be described, are very typical of most people that I advise. The main two reasons are; 1. They are not sure what exactly they should have in place for their specific circumstances, and 2. There wasn’t enough research done when they commenced plans and so they are paying over the odds for what they have.
So what do you know about your own circumstances? Just in the area of protection, you should know the following:
How much life cover should you and your partner have? (personal and mortgage protection?)
How much specified illness cover should you have?
How much income protection should you have? (and be allowed to have?)
Exactly what cover do you have?
What type of cover do you have? (Is it joint or dual, level, reducing or indexing, is illness cover accelerated or stand alone, is there a conversion option?)
How much does it cost?
If you know all of the above, it only takes minutes to see if you are paying too much and could be spending far less.
If you don’t know all of the above, you really should review and learn. It can take less time than a Coronation Street omnibus episode!
Contact me if you have any questions or to arrange an appointment.
Dave.April 11, 2012 at 9:18 am #121625
Reading that, I’m actually embarrassed by how little I knew before we had a review! At the time, I didn’t even know which company we had our cover with or how much we were paying 😳
Definitely worth having a look at 😉April 12, 2012 at 9:56 am #121642
Nothing to be embarrassed about Sue (once you realise what you don’t know and do something about it.) I bring my car to a mechanic because although I know some of the basics of how it runs, I would never dedicate the time needed to be a qualified mechanic!
People should just know the basic points above that are important for their family. It doesn’t cost anything to have it reviewed but it is usually valuable time spent.April 12, 2012 at 10:42 am #121653MaryEMember
I dont really know any of the above, must look into it all. 😳 😳April 13, 2012 at 9:00 am #121671
One of the reasons most people don’t know all the details is for that very reason, they say "they must look into" it but often don’t put enough importance into reviewing what’s in place to protect them and their family’s future. It’s understandable with busy lifestyles and so much else to do that must be done by a certain time, that’s why these areas often get put on the long finger.
The best time to review important details like these is always now because if you push it back, you’ll keep pushing it back.
Main thing to realise is that it doesn’t take long to go through and could be either saving you money or correcting types of plans.
Dave.April 13, 2012 at 1:59 pm #121683
A slightly different question, my sister just asked me can a housewife do her own pension?April 14, 2012 at 10:31 am #121706
Sue, Pensions are done as individuals, not couples, so if you’re sister is not earning a source of taxable income, she is not eligible to contribute to a pension. If someone is either empoyed and not in a company pension or they are self employed, they can contribute to a pension and get tax relief on their contributions. The amount you are allowed contribute as a % of earnings increases as you get older but if the earnings are nil, then that prevents contributions. The key phrase is "earned taxable income", so if someone had income from rental property or maintenance for example, they still cannot contribute to a pension. Feel free to get her to call me if she has any more questions.
Dave.April 16, 2012 at 9:39 am #121742
Wow! The guy in her bank was suggesting she should do a pension for herself! I’ll let her know 😉April 16, 2012 at 11:10 am #121745
The "guy in her bank" was probably told to ask everyone about pensions this week, without having a clue as to eligibility (won’t be the first time!).
Because of the tax incentives on pensions, the rules are very strict about who and how much can be contributed.
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