Jan
28

What is Car Insurance?

Car insurance is a legal requirement in the UK.  All drivers operating a vehicle on public roads must be insured to do so.  Heavy fines, severe penalties and sometimes custodial sentences are given to those found driving with no insurance, or an invalid policy.  Car insurance is a policy taken out to cover financial losses caused by accidents or damage.  There are different levels of insurance that can be bought, depending on the amount of cover needed by the driver.

Third party policies cover for loss or damage caused by another person to the policyholder’s car.  This means that if the policyholder was at fault, the insurance would not pay out for damage to their vehicle, only for any damage to the other party involved.  The policy would pay out for damage to the policyholder’s car however, if it was found to be the other party’s fault.

Third party fire and theft offers the same level of cover as a third party policy with the additional benefits of also covering for damage caused after a car has been stolen or damaged by fire. 

Fully comprehensive insurance will cover for damaged caused to the policy owner’s vehicle regardless of who was at fault.  A fully comprehensive policy will also include additional benefits such as a courtesy car, if the policyholder’s car has to be taken in for repair or inspection.  Depending on which insurance company is used (as they all have different features to offer their policyholder), a fully comprehensive policy may also cover legal costs for disputed claims, medical expenses for those who have suffered injury and loss of earnings for those unable to work because of the accident.

Ensuring the policy has the correct cover for the policy holders needs, can help to relieve the financial burden that can often arise after a car accident.

Jan
15

Buying Life Insurance Online

Buying life insurance online can be just as easy as it sounds. There are so many insurance companies competing in the market it is easier to sit and search for them than it is to phone them all. Online there are also several price comparison websites that can be used to quickly see which provider is offering the best deals, without the need to visit all the individual sites in turn.

If the potential policyholder knows exactly how much cover they want and the terms of the policy, then they can proceed online without problems. The paperwork will be sent to them to sign and they will be covered immediately. However, those who are unsure as to what they require may be best advised to contact the company offering the best deal, and speak to an advisor before committing to a policy.

Taking into consideration household finances, any dependent children and ‘hidden’ costs, such as funeral expenses and solicitor’s bills, should all be factors when deciding on the policy terms required.

Dec
07

Public Liability Insurance Explained

Public liability insurance is strongly advised for any business or employer that deals with customers or members of the public on the business premises.  This insurance policy covers your business against legal and compensation costs in the event of a member of the public being injured or having their property damaged while on the premises.  This form of liability insurance does not cover staff insurance, which should be arranged separately under an employers’ liability policy.  The insurance will cover any costs or damages awarded to a person injured, and for damaged property claims, plus further related costs. These may include legal expenses, costs and fees, and the costs of any hospital treatment or ambulance services that the National Health Service may claim back from you.

Although public liability insurance is not compulsory legal cover (except in the case of extreme sports or horse riding businesses), it is advisable to take out such a policy, not only to protect your customers but also so that suppliers and customers have confidence in your business.

The types of business that should take out this cover include sporting and entertainment companies that put on live events, or that deal with members of the public in some way.  Self-employed people may need to look into this kind of cover, for example, if they have members of the public coming to their home or business premises.  Even if your business has an exemplary safety record and adheres strongly to good H&S practices, it would still be advisable to take out a public liability insurance possibility to protect against the event and costs of a freak accident.

Nov
13

An Ageing Population And Health Insurance

Health insurance is a measure taken to guarantee healthcare when trouble arises, be it an injury requiring surgery, cancer, or heart problems, all of which are very common. Anyone can benefit from the fast and high quality health care that comes with a good health insurance plan, but it is of particular interest nowadays, with an increasingly ageing population. You may have heard about the number of elderly people increasing as time goes on – this is not only because the population in general is increasing, but because life expectancies are also increasing. The result is that more people are living longer, and we have a greater number of elderly in comparison to younger people. Health insurance helps an ageing population to have ready access to the healthcare needed to live comfortably well into retirement.

Living longer increases the risks of succumbing to certain diseases. For example, dementia is one disease strongly associated with old age. When dementia or other illnesses strike in old age, people can find it very hard to find the comprehensive care that they need. Often, round the clock care is needed, and this can be hard to find with just the NHS. In retirement, income is much lower than it was before, and this means that an individual can also find it hard to finance his or her care. Health insurance helps by setting aside money for such eventualities. Especially for those with a family history of dementia, health insurance is a good way to ensure that you are cared for should the disease strike. Dementia and Alzheimer’s are some of the most common mental degenerative diseases in the UK; so covering for these can pay off in the long term.

Advances in medicine mean longer life spans, so it is best to ensure that the extra time is spent in the best health possible. In turn, medical insurance helps to extend the lifespan optimally, and gets rid of the uncertainty of receiving adequate care. It can be taken out by people of any age to make their retirement as comfortable as possible.  Obviously the older you are when you apply the higher will be the premium.

Nov
06

Term Life Insurance – what is it?

Adequate life insurance cover provides the ultimate financial peace of mind, and it makes great sense for anybody with a family or dependants to take out a policy. 

Term life insurance is the most straightforward type of life insurance policy, and is generally the cheapest.  It only pays out in the event of the policyholder’s death during the length of the agreed term, which will have been written into the terms of the policy.  For example, it could be anything from five to 35 years.  Upon the event of the policyholder’s death, one or more beneficiaries will receive a lump sum or alternatively receive the payment in increments.  This is known as Family Income Benefit (Protection), and is designed to ensure financial stability for the deceased’s family.  With some policies, bonuses are added to the final lump sum payment from a term life insurance policy.

Term life insurance policies may be renewed at the end of the term, but bear in mind that this will increase the premiums that you will pay.  It might be wiser to consider taking out a Permanent Life insurance policy instead, which will pay out in the event of your death at any time. This might be a costlier option, but it does have the benefit of guaranteeing that your loved ones will receive a payment on the event of your death. 

There is also an option known as Decreasing Life Term insurance – often linked to mortgage payments (if you have a repayment mortgage). As the name suggests, payments decrease over time, and it is sometimes called Mortgage Protection Life insurance or simply Mortgage Term insurance.  Another option is to take out an increasing policy, which means that the premiums and benefits of your cover will rise as the years go on.  It is worth noting that life insurance policies do not cover all eventualities; suicide will be excluded from some policies. 

As with all financial matters always read the small print before signing on the dotted line.

Oct
28

Unusual Home Insurance

If your personal situation is unconventional, obtaining house insurance quotes can be frustrating.  Fortunately, this situation is recognised by some insurers, and specialist policies have been developed to assist you.

Specialist Flood Insurance

About five million people in the UK live in areas of flood risk.  If you have been flooded in the past or live in a designated flood zone, home insurance can be difficult to secure.  Sometimes mortgages are issued dependant on the aquisition of flood insurance.  For home owners in this position, specialist flood insurance is available.

Holiday Home Insurance

If your holiday home is left unoccupied for over thirty days continuously, you may find insurers reluctant to cover you.  Specialist holiday home insurance is available for this situation.

Non-Standard House Insurance

If your dwelling is of unusual construction and does not conform to the normal bricks and mortar conventions, you may struggle to get standard home insurance.  If your home is considered to be of ‘non-standard construction’ you will need specialist insurance.  Don’t worry, there are products out there tailored to suit your home perfectly.

Renovation Insurance

Renovation insurance covers household renovation projects.  You can get protection against fire, flood, accidental damage and other disruptions to your project that could impact your finances.  Don’t assume standard buildings insurance covers you for this type of project; in most cases it won’t.  Specialist renovation insurance is the safer bet.

Oct
23

Public Liability Insurance and Third-Party Liability Car Insurance

Public Liability Insurance

The various risks that are associated with running any type of business cannot be ignored.  Any injury or damage to the general public caused by the employees of a particular business is, under normal circumstances, covered under public liability insurance.  When injury or property damage is determined by the courts to be the fault of a particular business or the staff members of that business, the public liability policy covers court and legal fees, and other expenses related to the case.  It may also cover, or greatly contribute to compensating for, medical treatment under the National Health System.

When purchasing public liability insurance, it can be difficult to determine how much coverage you need.  To avoid under-insuring you should purchase more coverage than you think you are going to need to ensure adequate protection in the event of any type of accident.

Third-Party Liability Car Insurance

It is a legal requirement in the UK for anyone driving a motor vehicle on a public road to be covered by insurance.  Failure to have insurance can result in a heavy fine.  Third-party cover is the basic car insurance coverage for anyone who drives a car on the UKs public roads. Third-party liability car insurance covers a claim from any third party who suffers injury or damage to their vehicle, as a result of the actions of the insured driver.

Oct
02

Pet Insurance Choices

There are three different types of pet insurance. It is important to choose wisely, taking into account you and your pet’s situation, in order to arrange the appropriate cover.
Time and Benefit Limited

This policy insures any new condition up to a time and financial limit. Any one medical condition is insured and will be covered for a maximum of 12 months and up to a set financial limit. Once the costs for treatment reach the financial limit, or the condition has been treated for 12 months, the insurer will no longer pay out and the condition will be excluded from the policy. Other unrelated conditions will continue to be covered. Even if the policy is periodically renewed, the condition will still not be covered.
Benefit Limited

This policy insures any new condition up to a financial limit. Once costs for treatment of one condition reach the limit, the condition is excluded from the policy. As long as the policy is periodically renewed, there is no time limit on how long the condition can be claimed for until the financial limit is reached.
Lifetime Cover

This policy insures all new conditions up to a total limit each year. When the yearly limit is reached, the insurer will no longer pay out for any conditions. When the year is over and the policy is renewed, the limit is fully reinstated and claims can be made once again, even for on-going medical conditions. This is ideal for pets that have or are likely to develop long-term conditions, such as diabetes or arthritis.

Sep
27

Term Life Insurance Explained

There are several types of life insurance policies you are able to choose from when you need to ensure the financial stability of your family in the event of your death.  The most common policy taken out is the Permanent Life Insurance plan which provides lifelong cover.  In this case, the policy only matures and the insurance company will pay out when the individual dies.  Another type of policy is called Term Life insurance.  This type is a little different in that it only covers an individual for a certain number of years.  Once it has matured it can be renewed.  The type of policy you take can cover you from five to thirty-five years depending on how long you think you may need it.   

In the case of Term Life insurance, if it is taken out for a five-year period for example, the money will only be paid to the next of kin if the individual dies within those five years.  If they have not renewed their plan after the five years are up, and they then die, the money will not be paid out as the premium will be seen as already matured.  With Permanent Life Insurance, the payments stay the same throughout the policy until the holder dies.  With Term Life Insurance, the payments may stay the same or increase.  As with all insurance premiums, checking a number of quotes before purchasing a policy is recommended. 

Sep
14

An Introduction to the Types of Health Insurance Available

Most people are aware of the existence of health insurance, and many people have their own policy.  Health insurance is particularly important for self-employed individuals, those with financial commitments, and those who wish to seek private medical care in the event of illness.  However, just as important as actually taking out an insurance policy, is having knowledge of the different types of policy and the type of coverage that they provide.  All health insurance policyholders should periodically review their cover, to ensure that it is right for them.

The first type of health insurance is a co-payment plan.  This is most useful for those who do not expect illness, but want the peace of mind of a comprehensive health plan.  The insurance provider agrees to pay only a certain percentage of any claims that are made.  Payments will be relatively low, and will depend on the percentage of coverage required.

Cash cover plans are usually the most inexpensive health insurance, and mean that the provider will pay a lump sum when the policyholder makes a hospital visit.  They are however unlikely to cover operations in private hospitals, so it is vital to review the policy properly to ensure that it provides cover in the situations that you require.  Expert health cover providers will be able to assist.

Finally, comprehensive cover gives complete cover, and covers costs in medical emergencies and allows the policyholder to seek private medical care. 

If you are unsure as to which type of cover would be best for you, it is a good idea to seek advice from a financial adviser, or preferably an expert health cover provider. 

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