Life Insured - Is Yours?
My wife and I have a new baby, and after chatting with friends, I thought I should probably take on a life insurance policy to provide an amount of money in the event of my death or my partner. A client and legal adviser, however, speaks of "whole life" insurance "term" policies, and to be honest, I am a little confused and I do not understand very well the merits. Can you help?
R Ellison, Balham, Washington
Life insurance companies love to tell us that we can never have enough insurance. However, if the whole life policy could be sure that you do not want or need.
Term insurance is the simplest form of coverage available and probably will be enough for you. It covers a fixed period - usually 25 years for a mortgage in 20 years, for example, until their children have left home - and when the policy is working, there is simply no premium payable.
Having your life insured through an insurance policy has become more popular over the past five years due to competition between insurers and offers new market, such as J Sainsbury, Asda and Boots. The monthly premiums of more than 20 years of $100,000 in a lump sum of his death, leaving only 7.35 dollars, with NFU Mutual for 29-year-old ex-smoker.
In your case, you can also choose a "family income" term if, instead of a lump sum, your family will receive an annual income - this is done through an annuity policy.
Whole life covers risks in another operating principle. You'll pay throughout your life, and because there is no deadline for the period of insurance, you will generally pay higher premiums because the insurance company covering the whole of his life - regardless of the time in May. "As a general rule, we can take this coverage with a partner who has a job and not return," says Peter Timberlake, a spokesman for the legal protection and general.
However, there is another important aspect of the life investment policy.
Part of your monthly premium is used to set up a small pot of investment which, in turn, is used in the long term to help keep premiums low for the duration of their lives. But this only works if the element of investment success. Brian Clark, technical manager of independent financial adviser Lifequotz, said that in recent years, the poor results in the stock market have dimmed the appeal of these policies, which increased the monthly payments.
That said, the whole life insurance offers price protection.
One might think that after a short run, it would be easy to get another if you want more coverage to protect his wife. But later in life, it is likely that the premiums are much more expensive - especially if it is not healthy.
Whole of life policy are not affected by age or become ill because premium costs are calculated on the purchase of the policy.
Regardless of life to buy coverage, consider that as part of inheritance tax (IHT) planning. Make sure your policy is written "in trust" - usually in the hands of the insurance for free - so the amount is not part of his estate to his death and can be used instead to pay any IHT liability.
Buy a new suit for work at a local store, I found what appears to be a good business: a zippered jacket, after a long was marked at 170 pounds, instead of 370 like the other books.
Delightedly gears in the box, I was told they were wrong, the price he and I could not be at this price.
He argued that, as set out in the store because it had the right to buy at the lowest price? Suffice to say, I left without the suit.
T Maxton, Smithton, CA
The myth of energy consumption, unfortunately, in this case a little different hidden truth: if the store has made a genuine error in the price - or, for example, a customer has gone unnoticed by the price tags - you can refuse to sell products at cost.
"You have no right to require the advertising of prices," said Tony Allen, a spokesman for trade rules. "[Here,] there is no contract between you and the store." Instead of giving property rights regarding the errors, the 1987 Act on Consumer Protection is there to protect against the promise that the stores of goods at, say, 20 pounds, when in reality it is much if they satisfy certain conditions.
The number of retailers beyond the call of duty to offer customers a good deal is now troubled waters, "says Allen. Many clothing stores and music merchandise return days later, even if it's only a matter of changing your mind.
