Unusually for the financial world, Short-Term Income Protection (STIP) is actually a descriptive product name. This policy provides you with a tax-free income to cover your outgoings in the event of accident, sickness, or unemployment – this is why it’s sometimes referred to as ASU insurance. You’ll receive an agreed monthly amount over a short period, usually 12 months. ((Some policies go up to 2 … [Read more...]
Is it worth getting Critical Illness Cover?
Once known as Dread Disease Cover (yes, really), Critical Illness Cover pays you a lump sum if you’re diagnosed with a serious condition that’s stated in your policy. This payout is tax-free, so could be useful for paying off debts such as mortgages, covering major outgoings, or making adjustments to your home. It’s often sold with a life insurance policy and recommended to people with large … [Read more...]
Do you need life insurance?
Life insurance is one of those gloomy topics that isn’t much fun to discuss. However, it could make a big difference to your loved ones should you expire sooner than expected. If you have a non-working partner or young children, how would they manage without your salary? Depending on the type of policy, life insurance can be relatively inexpensive. The peace of mind it can offer, though, is … [Read more...]
How We Learn About Money
When were you taught about money? Probably you weren’t. Many of our financial habits emerge from the messages we absorbed growing up. We observe how family members behave around money and believe this is ‘normal’. As you’ll know from other experiences, these early ‘lessons’ are incredibly powerful and hard to unlearn. Childhood events are greatly magnified and dominate our thinking, often … [Read more...]
Will inheritance tax affect me?
Inheritance tax used to be something that concerned only wealthy people. Now that even modest homes can be worth seven-figure sums, more people are starting to pay attention. Although less than 4% of estates ((Source: Office for Budget Responsibility.)) are liable for this tax, this figure is increasing. Perhaps unsurprisingly, half of all inheritance tax is paid on estates in London and the South … [Read more...]
Financial Myths No. 2 – My property is my pension
Given the extraordinary house price inflation over the last decade, you’d be forgiven for thinking that your home will be enough to fund a long retirement. These days, owning a semi in Penge can make you a millionaire, at least on paper. But is property a reliable investment? And can it really provide you with a pension through equity release? You might think you can use your home like an ATM, but … [Read more...]
Open Up: The Power of Talking About Money by Alex Holder
Who knows how much you earn? One person? Two? Maybe nobody apart from Human Resources. Research shows that nearly 50% of couples have no idea of each other’s salary. As Alex Holder explains in Open Up, we often believe our salary and assets define us. These are the true indicators of our success, status, and power. Revealing that magic figure gives someone an easy way to judge our worth. And this … [Read more...]
Where there’s a will, there’s peace of mind
Would you like to leave all your worldly goods to Uncle Nigel? That’s what might happen if you don’t create a will. A will is a legally-binding document that stipulates who you want to inherit your estate. Although a will can save an awful lot of suffering for those left behind, only 40% of the population currently has one. If you die without a will, the rules of intestacy determine how your … [Read more...]
Financial Myths No. 1 – I can retire on the State Pension
Back in 2017, a survey by the FCA revealed that around 15m people in the UK are relying on the state pension to fund their retirement. They had no other provision to keep them in old age. Many had left it too late to make alternative provisions, but others admitted they found pensions too confusing and this had prevented them from making informed decisions.Nobody wants to think about their … [Read more...]
Should I put my money in Premium Bonds?
The British aren’t renowned for being an optimistic race. Yet 22 million of us have invested £79 billion in Premium Bonds, a scheme that offers low odds on winning even a modest prize. So, what’s the attraction? Is this really a good way to boost our savings or chances of retiring early?In this post, I’ll explain how Premium Bonds work, how the potential rewards compare with other forms of … [Read more...]