Life Insurance Blog

Circumstances when life insurance companies don’t pay out

2009-05-22T09:12:00.002+01:00

With the continuing global economic crisis, there has been a lot in the press recently concerning the importance of life insurance at such a time and whether it is even certain that we’ll receive our money when we are due it. This is particularly relevant in the UK at the moment with the Janice Wild Vs Windsor Life case, but the aim of this article is to highlight that this is an isolated incident and that we shouldn’t lose trust in the UK life insurance industry as a whole. Typically though, there are certain times when policies will not pay out and I shall describe some of them here:

Death by Hazardous Activity
Hazardous activities or extreme sports are often hard to define, but it is usual for insurance companies to stipulate that should a policyholder die during some kind of dangerous recreation or pastime they will not pay out. Consequently, it is important that if you are considering a life insurance policy and enjoy any sport that necessitates any degree of risk: such as skateboarding, rock climbing and sky-diving – then you should be completely honest with your insurance company and ascertain whether you need extra or specialist cover at the outset.

Death by Suicide
Insurance companies will often refuse to pay out when the policyholder has committed suicide. It is typical of each life insurance policy to include a suicide clause which nullifies the policy if suicide occurs, usually, within two years in the US – whilst some state-wide policies have statutory suicide clause covering 1 year. Additionally, certain policies may reserve the right to reject a claim should the holder commit suicide at any time.

Death during War
It is typical of insurance companies to not pay out should the policy holder die during an act of war. This is simply because an event that is as unpredictable and extraordinary as war is difficult to calculate in risk terms. Consequently, the definition of “war” amongst companies is usually quite broad and might vary between each, but will likely include: civil and international war, declared and undeclared war, and any conflict between military organizations. It must be acknowledged that acts of terror confuses matters further and are regarded as acts of war by some, but not others.

Death in a Restricted Country
Life insurance companies may also refuse to pay out if the policyholder dies in what is considered a “Restricted Country”. These usually refer to places where disease or conflict leads to the deaths of many of the population. Similarly to death during war, it is too difficult for companies to judge the risk of an individual in such an unstable country. In circumstances where policyholders must travel to such destinations, a policy rider is usually purchased for the duration, and at an increased premium, in order to ensure the individual is covered.

On a health-binge? Why you should review your life insurance policy

2009-05-21T15:29:00.003+01:00

The global economic crisis is causing all of us to review our outgoings and to reconsider whether we really need to spend on items we used to take for granted such as life insurance. However, whilst many of us are eager to reject the idea of life insurance as a necessity at all, we all know that the best way to really save and benefit from the security it offers is to be a healthier person. So how healthy are you? And could you be benefiting from kicking some of those indulgent vices into touch?

Smoking
Whether you are a smoker or not can make a huge difference to the amount you spend on life insurance premiums. UK No Smoking Day occurs on the 11th May and highlights the many benefits of quitting, and aside from the obvious health implications, the financial ones via savings on your life insurance are also very great. According to The Guardian, stopping smoking for a year when you reach the age of 40 can result in premiums 50 percent lower than they would be for a continuing smoker. Taking actual costs into account, an individual could save over £100 a month.

Alcohol
Similarly, alcohol consumption can affect life insurance prices also. This information increases in significance when we consider how much is adequate to drink in health terms. The Telegraph reported last December that insurers were being forced to push up prices after increases in cases of liver cirrhosis, heart problems and cancers which may be linked to alcohol consumption – whilst statistically 20 percent of UK men and 30 percent of women are said to drink ‘hazardous’ amounts. 50 units, i.e. an amount that is considered harmful can result in £300 extra on premiums over a year. Yet, an article at bytestart.co.uk highlights the importance of re-taking a liver-function test should you cut down, as this will likely be taken into account during a life insurance review.

Obesity
Being obese to the point that it affects your health, and with levels of clinical obesity increasing faster in the UK than anywhere else, insurance companies are beginning to take note. Statistics form whatprice.co.uk look at the average 40 year old (at 12 stone) compared to an obese person of the same age and who will weigh 18 stone. Cover that is worth £100,000 would cost 50 percent more for the latter individual, but they may even be at risk at not being granted cover at all.

Whilst the recession is causing many of us to cut back on spend, and to re-assess the financial aspects of our lives, by acknowledging the savings made by those with a healthier lifestyle it seems that 2009 might be the best year to focus on our health habits as well as our money habits. And if you are healthier now than you have been since buying life insurance, review your policy and compare prices – and keep them informed even if you have just joined the gym. It might be worth more than you had realized.

Life Insurance – It Just Got Interesting!

2009-04-22T14:01:00.001+01:00

For the majority of our lives, the subject of life insurance has traditionally been one that each of us has probably wanted to ignore. It is often regarded as tedious, frustrating, dull, and not altogether essential – at least until you reach that age. On another level, despite its importance and the inherent sensibleness that is evident when an individual is seen to have taken out a policy, it is still very difficult to make the subject of life insurance seem interesting, positive and relevant – without seeming preachy.

Of course, all that is about to change. Drawing influence from a blog post at wnyc.org entitled: Life Insurance…Not So Dull After All, the interview contained therein highlighted the fact that, aside from what it might mean from person to person in regards to when/whether they should be thinking about it, life insurance on an industrial and business level is one of the most important factors in regards to the recession – and consequently one of the most discussable subjects for the press.

In that post, expert Aaron Elstein points out the likelihood of further bailouts for American life insurance (many insurers remain in a strong position) companies due to certain investments in bonds (i.e. mortgages) which have declined in value. In turn, such declining bonds will be sold at a loss and certain insurers will be losing money – and, in simple terms, may well struggle to pay out claimants without government aid. If that doesn’t sound like the makings of a John Grisham novel, further life insurance-orientated news stories seem like the stuff dreamt up by Hollywood scriptwriters.

The Los Angeles Times (and other places) reported on April 8th of the story of two middle aged women who’ve been arrested and accused of life insurance fraud on a grand scale. The women (aged 60 and 66, and thought to have worked with others) are said to have bought life insurance policies in the names of fictitious people, waited until the policies had matured, held fake funerals, and then received the payouts from their own beneficiary bank accounts.

The couple are facing several charges and are said to have carried out two fake insurance claims for individuals called Jim Davis and Lara Urich, leaving agents etc stunned at the lengths some will go to. The Times stated: “the defendants are accused of faking the cremation of a "Laura Urich" and collecting $5,000 in funeral expenses and $50,000 in insurance death benefits through two purported beneficiaries, according to court records.” Aside from being an important thing to consider when each of us reaches that certain time in our life – in 2009, it seems that life insurance could be the most intriguing subject of the time. And a great reflection of life in the 21st Century.

Centenarian Life Insurance: The future of the insurance industry?

2009-04-22T09:30:00.003+01:00

As the world population increases, it has become less of a surprise that economically developed countries have begun to experience the trend of an aging population. This has resulted in the increase of life insurance policies that are specially tailored to the needs of older people.

Such policies, usually sold as final expense insurance (but sometimes referred to as preneed or prepaid insurance), have been introduced by some insurers in order to give older members of the public the opportunity to buy insurance as they may not be able to afford a standard life policy. Final expense insurance policies typically offer immediate cover (although, a vesting period isn’t uncommon) which does not expire over a certain time, and the payout is usually used for funeral expenses such as travel and hearse hire.

The benefits of final expense insurance for customers, as well as companies eager to make themselves stand out from the pack, are quite obvious – so what does the future hold for the industry? According to a press release sent out by specialist life insurance company, Life Insure, they have embarked on an unprecedented move – to offer an insurance policy exclusively for those aged 100 or over.

On first reading, the notion seems absurd but possible at the same time. For someone who writes about the insurance industry frequently, I have seen many interesting trends and gimmicks develop in this highly competitive market, and one insurance company offering cover for a small but growing target market does seem like quite a good idea. Suffice to say, I was a little disappointed to find that the policy does not explicitly exist in reality – and was most likely a PR stunt. This conclusion was further enhanced by the comedic tone of the release and the overly senile responses of the centenarians who attended the product launch. (‘Gary Foss was more concerned with taking a nap’!)

That said, the prospect did get me thinking. Whether such policies do or do not yet exist, it doesn’t seem too far fetched to believe that they will do soon enough. The fact that the population is aging is one thing, but as a marketing aid – being the first company to seriously offer centenarian life insurance will no doubt be a very positive step indeed. Not to mention a sign of changing times!

Life Insurance - A Short History

2009-03-12T12:11:00.009Z

With the recent economic meltdown, the insurance industry has become the subject of news reports and articles all over the world as the US government offers more and more bailout capital to fledgling companies. As I write this (2nd March 2009), AIG, including their subsidiaries American Life Insurance Co. and American International Assurance Co., have been given $30 million and this led me to write this article: A Short History of Life Insurance.

Whilst the act of insuring dates as far back to 5000 BC, life insurance is said to have originated in Rome with funeral expenses being covered by “Burial Clubs”. In his book, The Roman Cult of Mithras, Manfred Clauss describes the ‘Collegia’ whose primary function may have been ‘to provide a decent burial for their deceased members,’ at a time when many would have had limited financial resources.

Insurance all but disappeared in Rome as the civilization fell in 450 AD. However, in the East similar insurance arrangements have lasted since 1000 BC, such as ‘community insurance’, and similar ‘burial societies’ established by Buddhists. Such schemes were also established in England. These were called ‘friendly societies’ in which donations were kept for emergencies.

In late 17th Century, and against the trend of the rest of Europe, life insurance began being promoted – particularly in London. At this time of growing sea-expeditions and importing/exporting, Lloyd’s Coffee House (a café frequented by sailors, shipbuilders, and merchants) became the hub for reliable shipping news and communities of sailors who would insure cargoes etc.

Lloyd’s Coffee House

Today, Lloyds of London is still an important British insurance market. The developing English insurance model (that was further consolidated by Nicholas Barbon who opened a buildings insurance office after The Great Fire of London) soon became adopted worldwide.

The Great Fire of London

In the US, the first life insurance company available to anyone was established in 1761, though it wasn’t until the New York Fire disaster of 1835 that the public began to fully understand its importance. Public liability insurance arrived with the birth of the automobile at the end of the 1800s.

New York Fire disaster of 1835

By the turn of the 21st Century, the USA became the second biggest market for life insurance premiums after the EU. In late 2008, after the collapse of the US housing bubble, financial institutions began to feel the knock on effect of the “Credit Crunch”, the first being the mid-sized UK bank Northern Rock, followed by the subsequent bankruptcy of the financial services firm Lehman Brothers. This caused the governments of the US and UK to intervene with certain companies caught up in the crisis, including AIG who have recently reported the biggest net loss in history at $61.7 billion for their last quarter.

Life Insurance – There’s more to giving up smoking than just getting healthy

2009-03-11T11:41:00.005Z

March the 11th sees the 25th anniversary of No Smoking Day, a day of national recognition and support for those who want to try and give up.

Over the past 25 years the campaign has grown from an awareness day organized by a group of individuals with an interest in health, to becoming a fully registered charity in 1991, and onward to employing a full-time staff and becoming one of the best-known days of its type. In light of the ongoing global economic difficulties and the ‘credit crunch’, this year the campaign is more geared towards how smokers can save money if they give up – alongside the well-known health benefits.

So how can giving up smoking at this time help you save money?

The first financial saving to consider, is what you might save on a day to day, week to week, or year to year basis, if you were to give up smoking now. According to myfinances.co.uk, the average packet of cigarettes costs £5.67 in the UK.

If we assume that the average smoker gets through a packet a day, a week of non-smoking will save you £39.69, a month of non-smoking will save you in the region of £177.75 – yet over an entire year you will be set to save a massive £2,069.55.

It is fair to acknowledge that not everyone who wants to give up smokes £5.67 worth of cigarettes everyday, but during these times of belt-tightening and cutting back, the prospect of saving over a thousand pounds after a year of non-smoking must sound tempting to anybody.

However, savings from giving up smoking don’t stop with the cost of cigarettes. As life insurance companies become more and more competitive whilst frugal customers threaten to cancel their policies, now is the best-time for non-smokers to benefit from slashed monthly premiums in comparison to their smoking peers. Savings of up to 50 percent on payments can be made for non-smokers, whilst comparison website moneysupermarket.com estimate a 30 year-old male smoker will spend over £8,000 more on life cover than a non-smoker of the same age.

The financial benefits of giving up around the 11th March go even further though. With the growth of No Smoking Day year on year, many businesses, including supermarkets and shops, have tried to get a piece of the action. Supermarket giant, Asda are discounting prices of nicotine patches and gum in an offer to help their visitors stop at this time. It certainly seems that, in terms of saving money from stopping smoking, March 2009 may well be the perfect month to give it a try.

Life insurance, the last thing on our minds

2009-03-02T15:26:00.004Z

Not only is today’s economic crisis causing us to cut back on non-essentials, but as a consequence, it is also forcing us to ask how important these non-essentials are.

So where are us Brits cutting back when it comes to our monthly spend? And when it comes to some of the things we’ve been idly paying for until now, are we in danger of forgetting how essential these things actually are?

According to firstrung.co.uk, in a recent survey 42 percent of those asked said that should they be forced to cut back on one monthly payment, they would stop paying into their savings accounts. Additionally, from a survey of families carried out by creditchoices.co.uk, 37 percent would claim to reduce their savings, in a move to seemingly ignore the consequences this could have for the future.

That’s not to say that we are not also cutting back in less essential areas. In the same survey just over half of people asked said they would stop spending money on leisure activities and holidays. However, this is not only due to the fact that we have less credit due to the crunch, but also because the price of raising a family has increased at a significant rate recently – 4 percent in a year, and a full 38 percent in the last five years.

This is where the respective meanings of ‘essential’ and ‘non-essential’ seems to be getting a little foggy, for it doesn’t seem illogical to me that I would consider paying for a holiday as not essential. However at the same time, the statistic of just 52 percent of families choosing to cut back in this area suggests there is a great portion of people who would disagree with me.

Similarly, whilst I would consider life insurance to be closer to the ‘essential’ end of the payment spectrum (especially where raising a family is concerned), there are a fair amount of people who are eager to stop those payments despite the risk to future security. Interestingly, there is a significant difference between those asked in the ‘individuals’ survey discussed by firstrung.co.uk, compared to those asked in the ‘family’ survey by creditchoices.co.uk. The former survey reports that five percent would neglect their life insurance policies, whilst 23 percent are said to be reducing or cancelling life insurance in a family situation.

So is this percentage difference because of the greater need for families to cut back in more areas, or because of a gradual change in what we as a nation prioritize when it comes to spend? Essentially, do we feel more obliged to have a holiday now than we did in the past? It’s a complex question, but it seems to be a worry to some in the business who are also arguing that long-term financial security such as life insurance is more important now than it has been in the past. To those people, even the thought of cutting back in such an area does not seem sensible at all.

Life Insurance for Storm Chasers

2009-03-02T12:20:00.005Z

Storm chasing is the recreational pastime of seeking out extreme weather conditions with the aim usually being to satisfy a personal interest by photographing or videotaping the phenomenon.

Storm chasers gather near approaching storm

Although storm chasers rarely get paid for the activity, and are usually meteorologists or scientists acting in their spare time, the countless amount of documentary evidence they have produced has often gone on to benefit researchers, governments, and the authorities. So, if not affecting life insurance directly, do storm chasers receive higher premiums?

Tornadoes are the icing on the storm chaser’s cake, and although spotting one is not the most important goal of chasing, to be able to track and monitor the unpredictable nature of tornado for a significant period of time is considered a great achievement.

Subsequently, the areas of the world (most notably, the mid-south east of the US) that experience frequent tornado activity are popular destinations for storm chasers. Risk-wise, although not as powerful as hurricanes, they are certainly more frequent (approximately 1000 per year). Therefore it is standard procedure in these areas to check whether your homeowner’s insurance covers tornado damage and to expect higher premiums because of it.

Thunderstorms are much more likely to be successfully ‘chased’ than tornadoes. Interestingly, despite the arguably high frequency of thunderstorms, the average chance of an American being struck by lightning is 1 in 576,000, yet expectedly, the chance for a chaser to be struck is far greater.

So far no storm chasers have died, and it seems that the old adage of the car being the safest place to be has proved quite true as those that have been struck have been outside in close vicinity to wire fences and pylons that have conducted unexpected strikes.

Hurricanes, although rarer than the above, are no-doubt more dangerous and combine all the risks of the above. As a result of this, high risk areas are prone to needing hurricane insurance and this can include most of the US.

A typical storm chasing vehicle

Many of the most awe inspiring chaser photos are of flash floods and coastal areas during a hurricane as a cause of high precipitation and wind. This leads to the biggest risk for chasers, it not being the storm itself, but driving through severe wet weather (core punching) which can include heavy rain or even hail and making it incredibly treacherous for any driver. To date, the only recorded chaser death was caused by a car accident.

Visit the Official Storm Chaser website for more information on storm chasing.

Life Facts

2009-03-02T11:28:00.003Z

Ironically, more money is spent each year on alcohol and cigarettes than on Life insurance.
Not the most interesting fact but you might like these facts of life....

01) Triangular sandwiches taste better than square ones.

02) At the end of every party there is always a girl crying.

03) One of the most awkward things that can happen in a pub is when your pint-to-toilet cycle gets synchronised with a complete stranger.

04) You’ve never quite sure whether it’s ok to eat green crisps.

05) Everyone who grew up in the 80’s has entered the digits 55378008 into a calculator

06) Reading when you’re drunk is horrible.

07) Sharpening a pencil with a knife makes you feel really manly.

08) You’re never quite sure whether it’s against the law or not to have a fire in your back garden.

10) Nobody ever dares make cup-a-soup in a bowl.

11) You never know where to look when eating a banana.

12) Its impossible to describe the smell of a wet cat.

13) Prodding a fire with a stick makes you feel manly.

14) Rummaging in an overgrow garden will always turn up a bouncy ball.

15) You always feel a bit scared when stroking horses.

16) Everyone always remembers the day a dog ran into your school.

17) the most embarrassing thing you can do as schoolchild is to call your teacher mum or dad.

18) The smaller the monkey the more it looks like it would kill you at the first given opportunity.

19) Some days you see lots of people on crutches.

20) Every bloke has at some stage while taking a pee, flushed half way through and then raced against the flush.

21) Old women with mobile phones look wrong.

22) Its impossible to look cool whilst picking up a Frisbee.

23) Driving through a tunnel makes you feel excited.

24) You never ever run out of salt.

25) Old ladies can eat more than you think.

26) You can’t respect a man who carries a dog.

27) There’s no panic like the panic you momentarily feel when you’ve got your hand or head stuck in something.

28) No one knows the origins of their metal coat hangers.

29) Despite constant warning, you have never met anybody who has had their arm broken by a swan.

30) the most painful household incident is wearing socks and stepping on an upturned plug.

31) People who don’t drive slam car doors too hard.

32) You’ve turned into your dad the day you put aside a thin piece of wood specifically to stir paint with.

33) Everyone had an uncle who tried to steal their nose.

34) Bricks are horrible to carry.

35) In every plate of chips there is a bad chip.

36) Knowledge is knowing a tomato is a fruit; Wisdom is not putting it in a fruit salad.

Life Insurance Terms Glossary

2009-02-17T14:37:00.012Z

When choosing your life insurance policy you will come across a host of bewildering terms. The following brief glossary is intended to help you steer your way through at least some of the maze.

Critical Illness Cover
Either as an add-on to a term life insurance or as a standalone insurance, critical illness cover will offer you and your dependents protection by paying out a lump sum (or occasionally a regular income for a pre-determined period) should you be diagnosed with a specified critical illness during the term of the policy.

Convertible Term Assurance

This is a type of life assurance that provides the policyholder the benefit of converting a normal, level term insurance to include a whole life, investment or endowment insurance element, which effectively provides a form of savings or investment that matures when the policy comes to term.

Decreasing Term Assurance

Over the course of the insurance term, the guaranteed sum assured steadily decreases. This type of insurance is traditionally used to cover the declining balance of outstanding repayments on a mortgage loan. Most lenders will insist that some form of life assurance is in place to protect their lending in the event of the borrower’s death.

Family Income Benefit

These insurance policies pay a regular – and tax free – fixed monthly or annual income to your family in the event of your death within the agreed term of the insurance. They are especially attractive to policy holders with young families and can be arranged as an add-on to a term life insurance or as standalone insurance.

Guaranteed and Reviewable Premiums

Policies with these types of premium are just as they say on the label: the cost of premiums can either be guaranteed throughout the term of the policy (and are sometimes called level premium policies) or they can vary as the rate of inflation varies, by linking the price of premiums to movements in the Retail Price Index.

Income Protection

This type of insurance covers payment of a proportion of your salary for a given time if you are temporarily unable to work because of sickness or injury. The length of time payments are receivable depends on the policy term – commonly two years, or up to age 60 or 65.

Increasing Term Assurance

This is a convenient way to compensate for the adverse effects of inflation over the term of the insurance by providing for an increasing value in the sum assured.

Indexation

Index-linking allows both premiums and the sum assured to be increased in line with the Retail Price Index.

Level Term Assurance

This is the simplest, most straight forward, no-frills life insurance. You pay the agreed premium and the insurer in return agrees to pay a fixed, guaranteed lump sum if at any time you should die during the term of the insurance.

Mortgage Protection Assurance

This is a form of life assurance intended to ensure that your mortgage is fully paid off in the event that you died before you had had the opportunity to pay it off.

Renewable Term Assurance

This arrangement gives the policy holder an option to renew the insurance at its expiry date and continue without having to provide a medical report.

Terminal Illness Benefit

As the name suggests, this is very similar cover to that offered by critical illness cover, as described above. In this case, however, payment is made in the event that the policy holder is diagnosed with a terminal illness within the term of the insurance.

Total and Permanent Disability

Similarly total and permanent disability cover offers protection in the form of a lump sum (or occasionally regular monthly) payment if the policy holder suffers a total and permanent disability during the term of the insurance.

Trust

A Trust is a way of putting something valuable (in this case your life insurance policy) aside to ensure the money goes to the people you want it to when you die. If the policy isn't owned under trust it automatically becomes part of your estate, thus increasing its exposure to inheritance tax. Putting the policy in the name of a trust can help to avoid inheritance tax.

Waiver of Premium

This can be offered as an optional policy cover that providies continued life insurance coverage without further premium payments if the policy holder becomes unable to meet their premiums due to injury, sickness or unemployment.

Terminal Illness cover

This type of cover also pays out if you are diagnosed with a terminal illness (terminal illness benefit does not typically apply in the last 18 months of the policy, and life expectancy must typically be less than 12 months).

Life Assurance

Interchangeable with Life Insurance (see def.) Life cover that provides a guarantee or promise of cover in the case of certain event that will happen e.g. death.

Life Insurance

Interchangeable with Life Assurance (see def.) Life cover that provides guarantee or promise of cover in the case of certain event that might happen e.g. death.

Death in Service

Lump sum cover provided by an employer. This is in the event of an employee's death whilst in employment. Typically a multiple of salary e.g. 4x salary.

Whole of Life

Whole life insurance is the most common variety of permanent life assurance, providing a guaranteed amount of death benefit and a guaranteed return on cash values. Premiums are also fixed and guaranteed not to increase.

Financial Services Derectory UK - UK Directory of financial services and indepent financial advices.

How do I protect my families money?

2009-01-30T11:00:00.003Z

Here are 10 things you can do to protect your families wealth from the simple creating a will to the less obvious like discounted gift schemes.

1.Make a will
Without a will, the State decides who receives money and assets in your estate. When this happens in England and Wales, your spouse takes the first £125,000 as well as your personal possessions and an interest for life in half the balance. The rest goes in equal shares to your children.

By making a will you could, for example, transfer some of your assets to children, grandchildren or others after your death within the £300,000 nil-rate band which would mean these bequests were IHT-free. All transfers between spouses are IHT-free but simply passing all assets to the surviving spouse means the IHT allowance of the first spouse to die is wasted and an extra £120,000 extra tax may be paid when the second spouse dies.

You could also use your will to set up a family trust but recent legal changes may mean your will needs updating. It is important to revise your will whenever your circumstances change - for example, when there is an addition to the family.

2.Change ownership of your home
Couples usually own their home jointly, meaning you both own the entire property. You should change ownership to become tenants in common so that you each own half of it.

David Rothenberg of accountants Blick Rothenberg explained: 'If you own it jointly, the house automatically belongs to the other person when you die. "By severing the joint tenancy you can give your share away to someone else when you die."

It is simple and cheap to do. A lawyer should charge around £100 to do it. But it is very important to consider the risk such a bequest might present to the security of tenure of the surviving spouse.

3.Equalise other assets
Equalise your estates. By having most of your cash, savings and assets held jointly or in one name only, the other person will not be able to use up their IHT allowance in their will.

Accountant Charlotte Black of Brewin Dolphin said: "If everything is held jointly it causes a problem as there is nothing to pass on when the first person dies."

Where husbands and wives or other members of civil partnerships trust each other sufficiently to equalise assets, they may even achieve immediate tax savings through making more use of the personal allowance for income tax - currently £5,225 per person aged under 65 - and capital gains tax - £9,200 per person during the tax year which ends on April 5, 2008.

4.Give with warm hands
You can give money and assets away before you die but there are strict limits under the IHT regime. Each person can give away £250 a year to any number of people as well as £3,000 in total annually to different people.

If the £3,000 allowance wasn't used last year you can give away another £3,000 this year. So, for example, couples who have made no use of this gift allowance can give away £12,000 in total this year.

There are no limits on the amount you can give away regularly out of your income, but it must not reduce your lifestyle.

Mr Rothenberg explained: "The Revenue is getting quite tough on this - so it's important to keep records of your expenditure as your income has to remain sufficient to cover your expenses. And record what you've given away."

5.Put your life cover in trust
When you die your life insurance will automatically pay out to the beneficiaries without having to go through the IHT regime if it is held in trust. The death benefit passes directly to them without being counted towards your estate. The life company - or, for example, the insurer which issued a with-profits endowment - will give you a form to complete to do this and it is usually free.

6.Check your pension arrangements
Employers' pensions are normally written in trust meaning any death-in-service lump-sum payment passes directly to whoever you nominate. Pension benefits for a widow or widower do not affect IHT though they will be subject to income tax.

Personal pensions should be written in trust, too, so that the pension pot can pass tax-free to whoever you wish. This must be done before you have to buy an annuity at 75 and cannot be done if you are in poor health - so it makes sense to consider action sooner rather than later. For example, as Mr Rothenberg said: "You can't change it if you are at death's door."

7.Consider tax-efficient investments
Several investments are free of IHT after they have been held for two years. These are shares quoted on the Alternative Investment Market (AIM), forestry land, farming land - provided you farm it, rather than rent it out - and partnerships or shares in a private business.

However, the favourable tax treatment should not blind you to the risks in these investments, particularly AIM shares. Small or recently formed companies are often more vulnerable to setbacks in a particular sector and may have smaller reserves to help them survive difficult conditions. There is no point losing capital to avoid tax.

8.Think of a PET
Potentially exempt transfers (PETs) are gifts of assets, cash or property you make before you die but you have to survive for seven years before they become IHT-free.

After three years, the beneficiary may get some tax relief which can increase each year until the seven years is up. However, if the gift is less than the nil-rate band the whole amount is added back into your estate when calculating how much you owe in death duties.

Mike Warburton of accountants Grant Thornton explained: "The tax relief is a discount on the tax, not the transfer itself. A single gift of £300,000 six years before the death of the donor will save nothing because the gift would all be within the nil rate band. This is frequently misunderstood."

You can't give your house away and continue to live there to diminish IHT liabilities, as the Revenue will regard it as remaining in your estate. But you can give it to a child who lives with you, said John Liddington of lawyers Speechly Bircham. He explained: "The child must live in the property until you die or go in to a home and you must both contribute to the running costs in order not to fall foul of tax rules."

9.Discounted gift schemes
These are single premium life policies which pay you an income for life and you give the policy itself away. Because it is paying a fixed income, the value of the policy is reduced. The actual discount is based on your age - the older you are the more valuable it is - so you have to be under 90 years old to use this type of scheme. However, it is important to understand that HM Revenue & Customs has pursued a strategy of challenging tax avoidance schemes in the courts which may continue in future.

10.Set up a trust in your will
Homeowners usually have the majority of their wealth tied up in their property. Without a trust, you cannot give away your share of the family home safely.

In this instance, the trust only comes into existence when you die. You will your assets and share of your house (held as tenants in common) to the trust up to the value of the nil-rate band, currently £300,000 and due to rise to £350,000 by 2010.

Then the trustees sell the share of the house back to the surviving spouse in return for an IOU. When the second person dies, the loan is repaid, thus using up the first person's nil-rate band.

It may sound simple but trusts are complicated and need a specialist to handle them. For example, earlier this year, the family of an Oxford don and his wife had to pay £60,000 in IHT when their trusts were considered to fall foul of IHT rules.

The problem was that Dr Patrick Phizackerley gave half his house to his wife, who then willed it to a trust on her death, and the trust lent him the share back until his death. However, the Special Commissioners, who settle disputes between taxpayers and the HM Revenue, ruled the scheme did not apply as Mary Phizackerley had no income and had not contributed to the house.

Mr Liddington said: "Since he'd given her half the house and then loaned it back to him via the trust after her death, he was considered to have lent his gift back to himself so the loan was not deductible for IHT."

Checklist - 10 things to do

Write a will and/or check that your existing will is up to date
Consider changing the legal form of ownership of your home
Equalise your assets so that both partners make use of tax allowances
Make gifts sooner rather than later
Put life assurance policies in trust and outside IHT
Check pension death benefits
Consider investing in tax shelters
Think of a PET - or Potentially Exempt Transfer
Discounted Gift Schemes may help - but beware pitfalls
Set up a trust in your will

What happens if a smoker lies on a life insurance policy

2009-01-29T15:00:00.003Z

With life insurance, there are three different premium classifications: standard, preferred or preferred plus. By not smoking (or having not smoked for at least 5 years) and being in excellent health, you will be awarded with a lower life insurance rate because your chances of dying sooner are reduced.

If for instance, you are classified as "normal healthy," meaning you haven't used nicotine in at least three years-then you would fall into a standard classification with a life insurance company. Under this standard classification you would pay a normal life insurance rate for your age, as opposed to a smoker, who would pay a higher insurance rate because they are tagged a potential risk. Something to think about the next time you light up a cigarette!

Are you considered a smoker?
In the world of life insurance, by answering "yes" on your application to the questions, "do you smoke?" or "do you consider yourself a smoker?," you would be considered a smoker. The same goes for answering yes to the questions of "have you used tobacco products, cigarettes, cigars or chewing tobacco within a specified time?" By insurance standards, even if you smoke socially or just once a year, you are considered a smoker. For the occasional smoker, you should answer the question as best as you see fit.

The cost of smoking
Research shows that smokers pay at least three times the premium of nonsmokers-which is what motivates many people to lie on their life insurance applications.

To lie, or not to lie
With life insurance, a nonsmoker's application is due to be reviewed more thoroughly than a smoker's life insurance policy, because the premiums are so different.

It is possible for smokers to "cheat" the system, because nicotine clears out of your system within 72 hours after smoking your last cigarette. Cotinine is the primary metabolite of nicotine, and the most common identifier of nicotine levels. If the urine test is given 72 hours after your last cigarette, the nicotine level may be low enough to escape detection. This is theoretically possible for even the heaviest of smokers.

You passed! Now what?
The policy between you and your insurance company is a legal contract, so it is important that you do not lie about your smoking habits. If you were caught lying during the underwriting process, your rates would be bumped up to a smoker's rate when your policy is approved. No insurance company is going to come right out and says they are going to drop your policy if they found out that you were lying. However, some life insurance companies will place random phone calls to applications who are questioned on a multitude of things, even smoking. The survey is designed to weed out liars by listening for inconsistencies in the applicants' answers.

What happens if you are caught?
The worst thing that could happen if you are caught is that your life insurance policy will be issued at a higher rate.

What if you start smoking after the policy is issued?
Many life insurance companies go by the "don't ask, don't tell" idea. It is important to be truthful when filling out your life insurance policy, but if you start smoking after it's issued, you are not required to tell your insurance company. If you die, and your life insurance policy labels you as a nonsmoker, when indeed you began smoking, your death benefit will not be jeopardized.

If you are interested in purchasing a life insurance policy or would just like to get some life insurance quotes, visit the Post Office at http://www.postoffice.co.uk/portal/po/jump1?catId=19300223&mediaId=61000695

How much life insurance do I need?

2009-01-22T15:02:00.003Z

'How much life insurance do I need?' is a question that is asked frequently. Basically, the cost of life insurance depends on two factors:

1. How much cover you want.
2. How long you want it for.

Then your age, sex, occupation, health and smoking habits are taken into account. The other issue affecting premiums is your medical history and current state of health. If you have any concerns, please do call us so we can advise on the most appropriate insurer for your circumstances.

There are many life insurance calculators out there, we recommend the This is Money website who have a good life insurance calculator.

Here are some typical life insurance costs taken from the Post Office in Jan 2009.

Level term monthly premiums

£100,000 of cover for a period of 10 years
	Female		Male
Age	Smoker	Non-smoker	Smoker	Non-smoker
25	£5.25	£5.00	£8.09	£6.17
30	£6.00	£5.00	£8.68	£6.18
35	£7.60	£6.60	£11.18	£7.58
40	£11.70	£7.87	£14.99	£9.28
45	£19.49	£10.58	£23.89	£13.18
50	£32.39	£15.79	£39.49	£19.39
55	£52.98	£24.40	£69.06	£30.71

£150,000 of cover for a period of 10 years
	Female		Male
Age	Smoker	Non-smoker	Smoker	Non-smoker
25	£7.85	£6.46	£11.15	£6.17
30	£9.35	£6.61	£12.20	£6.18
35	£12.05	£8.45	£15.65	£7.58
40	£17.60	£11.45	£22.40	£9.28
45	£29.45	£15.95	£36.01	£13.18
50	£48.05	£23.45	£58.85	£28.40
55	£79.66	£35.41	£103.25	£44.75

Decreasing term monthly premiums

£100,000 of cover for a period of 10 years
	Female		Male
Age	Smoker	Non-smoker	Smoker	Non-smoker
25	£5.00	£5.00	£6.12	£5.01
30	£5.02	£5.00	£6.47	£5.05
35	£6.06	£5.00	£8.06	£5.52
40	£8.01	£5.41	£10.58	£6.91
45	£12.76	£7.52	£16.11	£9.08
50	£21.31	£11.21	£25.91	£13.31
55	£34.21	£16.41	£43.21	£20.31

£150,000 of cover for a period of 10 years
	Female		Male
Age	Smoker	Non-smoker	Smoker	Non-smoker
25	£6.46	£5.71	£10.06	£6.76
30	£7.06	£6.01	£10.06	£6.76
35	£8.71	£6.01	£12.01	£9.16
40	£12.01	£7.66	£15.91	£9.91
45	£19.51	£11.41	£24.16	£13.66
50	£31.36	£16.81	£38.86	£19.96
55	£51.31	£24.61	£63.46	£30.46

Your monthly premium will depend on a number of things, including the level, type and length of cover, medical history, your age and gender and whether or not you smoke. Some typical monthly premiums are shown below. You can apply for life insurance if you are between 18 and 66.

Get a life insurance quote from the Post Office or call 0800 096 5484*.

How much life cover do I need?
If you're the breadwinner, you will want to keep your family in something like the style to which they have become accustomed. If you're a carer, then you want to provide cash for professionals to take over because you're not around.

Generally speaking, the figure should be enough to produce around two thirds of your earnings or £20,000 for professional care each year.

How long for?
Until your dependants are old enough to look after themselves. 20 years is about right for most people, or until your savings can adequately provide for you and your partner - possibly by the time you're 60 years old.

How much mortgage cover do I need and for how long?
You need to cover the amount of the outstanding debt, up until the debt is paid off.

What type of cover do I need?
Is your mortgage a repayment one? If so, you need a Decreasing Term Assurance policy. Or is it an interest-only mortgage, in which case you need a level term policy.

What is term life insurance?

2009-01-22T14:57:00.003Z

Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term.

After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

Health and Life Insurance: What is "term life insurance"?

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium dollars if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, an earthquake or fire. Whether or not these events will occur is uncertain, and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.

Usage
Because term life insurance is a pure death benefit, its primary use is to provide coverage of financial responsibilities, for the insured. Such responsibilities may include, but are not limited to, consumer debt, dependent care, college education for dependents, funeral costs, and mortgages.

Annual renewable term
The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.

Because the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.

One of the main challenges to renewal experienced with some of these policies is requiring proof of insurability. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.

This issue is frequently overcome by a feature in some policies called guaranteed reinsurability included on some programs, that allows the insured to renew without proof of insurability.

A version of term insurance which is commonly purchased is annual renewable term (ART). In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. This period varies from 10 to 30 years, or occasionally until age 95. As the insured ages, the premiums increase with each renewal period, eventually becoming financially inviable as the rates for a policy would eventually exceed the cost of a permanent policy. In this form the premium is slightly higher than for a single year's coverage, but the chances of the benefit being paid are much higher.

Level Term Life Insurance
Much more common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

In this form, the premium paid each year is the same, and is based on the summed cost of each year's annual renewable term rates, with a time value of money adjustment made by the insurer. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.

Most level term programs include a renewal option and allow the insured to renew for a maximum guaranteed rate if the insured period needs to be extended. It is important to note that the renewal may or may not be guaranteed and the insured should review their contract to see if evidence of insurability is requierd to renew the policy. Typically this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent them from being able to provide proof of insurability.

Payout Likelihood and Cost Difference
Both term insurance and permanent insurance use the exact same mortality tables for calculating the cost of insurance, and a death benefit which is income tax free, as long as the policy is in force and premiums are current; however, the premiums are substantially different.

The reason the costs are substantially different is that term programs may expire without paying out, while permanent programs must always pay out eventually. To address this Permanent programs have built in cash accumulations vehicles to force the insured to "self insure" making the programs many times more expensive.

Insurance industry studies have shown that the probability of filing a death benefit claim under a term insurance policy is unlikely.[citation needed] One study placed the percentage as low as 1% of policies paying a benefit. The low payout likelihood allows term insurance to be relatively inexpensive. The low payout percentage is a combination of there being a low likelihood (in the aggregate) of a random, healthy person dying within a short period of time. Because of the low likelihood of an insurer having to pay a death benefit, term insurance seems better when considered in terms of coverage per premium dollar basis - by a factor of up to 10.

Summary of Term Life Insurance

Term life Insurance is a pure death benefit.
It has no cash values.
It is just a pure death benefit.

Premiums today are usually locked in for ten, fifteen, twenty, or thirty years.

As an example, a healthy 30 year old male might be able to buy half million pound term life insurance policy with premiums guaranteed to be level for twenty years at three hundred dollars.

Now after twenty years the premiums go through the roof. So as an example, it might be three hundred dollars for twenty years, but in the twenty first year the premium might be three thousand or five thousand dollars per year.

And it goes up every year thereafter because as you get older, the mortality tables tell you that you are likelier to die than when you are twenty years of age or thirty years of age.

That is when the premiums go through the roof. But some people have an opinion that they will only need a life insurance policy for a ten or fifteen or twenty year period.

I talk to people all the time who say in twenty or thirty years I will have enough money in my bank account, my retirement account, I will inherit tons of money. And they say I will not need life insurance after that period of time. And I can point out that that usually is not the case. But ultimately you have to make that decision because as a good insurance broker, it is your agenda not my agenda.

I can guide you and tell you, "here are things people can do." It is your decision what you want to do.

Cashing life insurance

2009-01-14T15:13:00.002Z

Thinking of cashing in your life insurance? Cashing a life insurance policy can be costly business! In recent years cashing a life insurance policy has become a very common practise. It used to be that most life insurance policies were left in force in order that the intended beneficiaries could receive the face value of the insurance policy upon the death of the insured.

Ever since the inception of the aids virus, people with the disease have searched for ways to get their hands on cash to pay medical bills and in some cases just to live. Thus, if these people have life insurance policy with large cash values they end up cashing a life insurance policy or selling their life insurance policies.

Even the people who are receiving structured settlements from life insurance or an annuity are cashing their settlements in return for an immediate lump sum. These companies that buy these settlements or policies are enjoying a real bonanza...but the person with the terminal illness and their families are really losing in the end.

These investment companies buy life insurance policies from terminally ill people for a percentage of the face amount of the policy. The investment company pays all premiums for as long as the insured stays alive and collects the death benefit upon his or her death. The investment company is called a viatical company. Selling the policies can be referred to as "viatication".

In some situations people who are not terminally ill also sell their policies. In their situation their health has declined and they are in need of cash. These are referred to as life insurance settlements.

Instead of cashing a life insurance policy or selling your life insurance policy it may be prudent to take a loan from your policy if the "loan value" is sufficient to meet your financial needs. Bear in mind that there may also be tax implications involved with cashing a life insurance policy or selling it.

10 reasons why to buy life insurance

2009-01-14T15:07:00.003Z

Why should you get life insurance? Well, insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for the dependants after your death.

Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something even in death—to secure the home, help the family meet expenses for a while, protect dependant parents, or secure the children or spouse.

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income. It is best to sit down with an expert and go through the reasons why you should consider insurance and what kind of insurance planning would benefit you.

As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.

So here are 10 reasons why you should consider getting life insurance:

Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.
It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.
Life insurance can have a savings or pension component that provides for you during retirement.
Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.
Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.
In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.
Life insurance can be planned such that it will cover even your funeral expenses.
Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.
Insurance protects your business from financial loss or any liabilities in case a business partner dies.
It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

Insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments. Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan.

Visit Post Office® for life insurance quotes and to buy a simple, cost effective life insurance policy, offering you a way to pay off your mortgage or leave your family a cash sum when you die.

Life Insurance

2009-01-14T14:51:00.003Z

1 in 3 is the number of families who have no life insurance cover, critical illness insurance, or income protection cover in place. It is very important that people understand exactly what they are buying. Speak to a life insurance and protection adviser who will highlight appropriate policies. People should view income protection, critical illness, life insurance, private medical insurance and mortgage payment protection insurance as a basket of goods, choosing which are most relevant for them at any given moment.

When buying insurance, you can be overwhelmed by an information avalanche. To protect your future from poor choices today, try searching in terms of the 5 W's:

Who? What? Where? When? Why? and How much?

Who?
The classic argument to avoid life insurance runs, "If I die, why do I need money?" You don't -- but your family, your business or your favorite charity might. So anyone with dependents, human or otherwise, might need life insurance. Of course, if you don't need to protect anyone else, insurance is not a wise way to spend money.

What?
People approach life insurance with predisposed notions. They might be oriented to term insurance, yet don't have a good argument as to why. Any kind of insurance is a contract with requirements on both sides. Unfortunately, too many people think life insurance is a commodity, like going to the grocery store and picking up a piece of fruit to judge."

"Term" insurance forms the base of every life insurance policy. Think of it as renting a safety net: The owner pays a fixed premium toward a concrete payoff over a specific time. If you die during this period, the insurance company pays the promised amount. When the policy reaches its deadline, the coverage vanishes.

Some insurers offer convertible policies that allow a return client to take out another policy at the rate of a healthy person, but you pay a higher premium for the privilege. Insurance companies also offer three variations of permanent life insurance - that is, insurance that covers you for your entire life.

"Whole life" offers term insurance's set payoff for a set premium, except this policy doesn't come with an ending date. You'll pay the premium for the rest of your life, unless you decide to cash in and receive the cash value as a lump sum.

With "universal life", the insurance company separates the investment and death benefit portions, socking your investment dollars into its choice of bonds, mortgages and money market funds. Then your investment fund pays for the cost of the set death benefit. And, according to LIFE, no matter how badly the investments pan out, the insurance company guarantees you a minimum return.

You, as the policyholder, can change the premiums and death benefits to suit your current budget, so this appeals to younger crowds.

Finally, if you buy variable life, the death benefit payoff depends on your success in picking investment opportunities with the money (although the insurance company does cough up a guaranteed minimum death benefit at your death if you screw up too badly). These policies must be registered with the U.S. Securities and Exchange Commission.

Where?
Approximately 90 percent of life insurance is sold at the kitchen table; a growing 7 percent to 10 percent is sold over the Internet, according to AccuQuote's statistics. In either case, caution should prevail. This is not something you want to screw up and leave someone in the lurch.

When?
If you buy a term policy, there's no penalty to committing today. Just as homeowners refinance mortgages at lower interest rates, life insurance policyholders can cancel a policy at any time to replace it with a less expensive equivalent -- providing their health remains stable, of course.

Why?
Life insurance provides instant liquidity to meet the obligations that become due upon your death. It's a pool of money to complete what you can't finish. It's also not taxable income. Of course, don't make it your sole investment strategy. Other vehicles' returns beat permanent insurance products hands down!

The old story is to buy term and invest the rest. And that's fine if you immediately put that extra money into an investment vehicle, but it does take discipline to do that. If you don't, check universal or whole life.

How much?
When pondering coverage, buyers first should inventory their assets:

job insurance perks
social Security benefits
IRA accumulations
stocks
bonds
savings accounts

Then consider factors, such as how many people work in your household and if your need is temporary or permanent. For instance, do you want your spouse to stop working to care for the children?

"We don't want to think about these objectives because it's unpleasant for ourselves. It's easier to flip on a computer, say I need £125,000 and discover it costs X amount per month! Many buyers arrive at coverage numbers using the popular formula of four times their annual current salary. Wrong.

Too frequently people go into this half cocked with numbers they literally pull out of the sky. Taking a simple multiple of your current earnings is so nonspecific, it doesn't add up.
You should rely on a capital assessment to determine coverage need.

I typically tell people during the accumulation phase of their financial life that now is the time you can start cutting back on life insurance. Instead, build up your capacity to self-insure. Otherwise, here I am five years down the road with pay raises, and I'm still using a multiplier of four times whatever my income is. I'm basically buying more life insurance than I need."

As yourself this question "If I wrote you a cheque today for the amount on your insurance policy, would you work for me for the rest of your life at no pay?"

Next, is the price you pay reasonable? Insurance companies use life expectancy tables and risk classes to determine rates, then factor in underwriting costs. They consider mortality rates over time, so isolated events, such as the Sept. 11 attacks, don't significantly impact rates.

Today, Internet speed means companies compete on rates by the minute, so overall life insurance rates have plummeted nearly 60% from their costs just seven years ago. Yet a 40-year-old in good health seeking a 20-year term policy can find quotes ranging from £18 to £100.

The middle of the pack is almost double what you need to be paying, and believe me, plenty of companies in this level sell tons of life insurance. However, a few extra pounds for an A-plus-rated firm makes sense. Niceties like convertibility and quick claims processing stack up, too. In other words, cheapest isn't the only consideration.

Anything within £15 and £30 annually isn't worth the savings to deal with a poor company!

People often say, 'When I buy life insurance I'm betting against myself.' That's the worst expression I've ever heard,"

When you purchase life insurance, you're betting you'll live but providing an assurance in case you're wrong!

Can I write my own will?

2009-01-14T14:16:00.002Z

Did you hear the one about what Robert Louis Stevenson left in his will? Along with the veritable fortune earned from sales of Treasure Island (and an inherited vase no doubt) he tried to leave his birthday to a friend. And for good reason too, for his buddy was born on Christmas day and subsequently never had her own proper celebration. This light-hearted approach suggests that old Robbie may have done a DIY job on his last will and testament. But in this age of debt and obligatory sibling squabbles is it still possible to write it ourselves?

The primary reason that people want to write their will themselves instead of employing a professional will-writer or solicitor is to save money. This makes sense, as the time in one's life to take these kinds of actions may well coincide with the expense of life insurance also. However many points must be considered if choosing to take on this task yourself.

The first thing to think about is the simplicity of your circumstances. Of course it is up to you to decide if you have a great many assets to be split unevenly. However, if, like the aptly named Ms. Eleanor Ritchly, you want to leave your vast estate to a pack of dogs, you may not need the help of an attorney. But you may need the help of a psychiatrist.

Similarly, if you have a dependent who is unable to care for him/herself, then it is also advised to seek the help of a professional (a will writer who is qualified should be a member of the Institute of Professional Willwriters or the Society of Will Writers). Also, if you have children from a previous marriage it is also wise to not write a will without external help.

It is important to acknowledge the great difficulty of avoiding the costs of inheritance tax if you write your will yourself. Again, if you circumstances are complicated and you wish to take avoidance measures you will need a solicitor or other professional. Following this, if a business is involved, i.e. if you are the owner or manager, it is also best to seek help to prevent complex issues arising for those who receive your assets in the future.

Finally, if you live or own property abroad, or are not a British citizen, you should seek advice. And, it is probably worth pointing out at this point, that by writing your will yourself, it will only be valid if the correct number of witnesses are present when it is signed.

Visit Post Office® for life insurance quotes and to buy a simple, cost effective life insurance policy, offering you a way to pay off your mortgage or leave your family a cash sum when you die.

Drinkers face Life Insurance price rise

2009-01-02T11:50:00.002Z

Middle class drinkers who consume more than their recommended weekly intake of alcohol face paying higher life insurance premiums. The changes are likely to hit middle-aged, middle class consumers, particularly women, experts said.

Official guidelines say women should drink no more than 14 units of alcohol a week, and men 21 units – with one unit equivalent to half a pint of beer, a shot of whisky or a small glass of wine.

But the reality shows that many drink far more, with 10 million adults – 20% of men and 30% of women - drinking at a level which is "hazardous" to their health.

Insurers say they are reacting to increases in health-related problems such as cirrhosis of the liver, heart problems and certain cancers. A woman who drinks 21 units a week, not far above the Government's guidelines, could end up paying an extra £50 a year.

A man drinking 35 units, equivalent to two and a half pints of lager a night, could pay extra premiums of up to £100 a year.

And a man who admitted consuming 50 units a week could see his premiums double from £150 to £300 because his drinking would be categorised as "harmful". Very heavy drinkers could be refused cover completely. Most life insurance firms are now checking doctors' notes for signs of alcohol use in order to make sure claimants are not lying about their alcohol use.

Several companies admit refusing to pay out claims if they have evidence that they were drink-related. Companies including the AA, Norwich Union, Legal and General and Direct Line said they will increase premiums for drinkers.

A spokesman for the AA said: "Heavy drinkers are more likely to suffer from liver disease, high blood pressure and strokes. They are also more likely to have an accident, possibly fall into the road, and they are more likely to be involved in a fight."

Malcolm Tarling of the Association of British Insurers said: "Insurance companies are simply making a normal judgment of risk.'"

New Year Resolution - To Check Your Life Insurance Policy

2009-01-02T11:39:00.006Z

Have you got life insurance? If so, make sure one of your New Year resolutions is to check to see if you are not paying over the odds for your life insurance premiums.

The cost of life insurance has fallen by around 40% over recent years which means that many customers could be wasting thousands of pounds by not reviewing their protection policies.

Life insurance customers should use the new year as a reason to get their finances in order, and compare life insurance quotes to ensure they are not getting overcharged to better prepare themselves for what could be a tough 2009.

Last year saw the price of life insurance and critical illness insurance continue to fall, which means now is a good time buy. With the rising level of unemployment, income protection insurance is also becoming more important than ever, and, according to research from MoneyExpert.com, more than a third of Brits believe payment protection insurance to be an important purchase as a result of the current economic climate.

While income protection insurance has remained relatively static in price, it is still possible to save money and it could prove to be a valuable investment as the economic crisis tightens and more businesses topple under the weight of a recession.

Those who gave up smoking for their new year's resolution last year and have stuck to it for 12 months should review their life insurance policy and inform their insurance company; while this does not guarantee a cheaper premium, because it also depends on age and health, it could potentially cut hundreds of pounds off the cost of cover.

Over the average term of a life insurance policy for a 35 year old male in good health, there could be a saving of £1,239 between the most expensive and cheapest policies, a £3,039 difference between the cheapest and most expensive critical illness insurance policies, and a huge disparity of £8,769 between the cheapest and most expensive income protection insurance cover, so an individual could save as much as £13,000 over the terms of their insurance policies.

There are a number of steps that customers can take in the new year to freshen up their finances and save a bit of money. The first thing is to actually take action. Don't wait until New Year's Day 2010 comes round before you start thinking about saving money on insurance premiums again. However, it is important to remember that price should not be the only consideration when choosing a protection product and customers should look at the policy that offers the best value for money rather than simply the cheapest.

Life Insurance for Santa Claus

2008-12-24T10:07:00.002Z

I acknowledge that I am not the first to broach the subject of life insurance for Santa Claus, but I do think the subject needs updating. Christmas is around the corner and if I know Old Nicholas as well as I think I do, he must be a fairly responsible and sensible fellow who should have assessed his premiums and renewed his insurance months ago – after all, isn’t he some kind of saint?

Sadly you can’t just get an instant quote online for Santa Claus. I worked out his age to be 1738 years old and they only offer a life insurance policy if you’re born in the twentieth century. Furthermore, I would be eager to find out if Santa’s still smoking that pipe of his…that’s only going to push up the premiums for life insurance. And coupled with the fact that he is at least Class 1 obese (Body Mass Index 30 to 34.9)…things ain’t looking good.

I also wrote recently of Northern Irish police formally warning drivers of the difficulties they will face if trying to acquire car insurance after being charged for drink driving offences. It doesn’t take much to work out that if Santa keeps up his brandy consumption, alongside the mince pie scoffing, he’s playing a risky game at least when he drops in on Northern Ireland. Though in 1738 years of alcohol-fuelled gift giving it’s fair to say he’s been darn good at not getting caught. I imagine he’s built up quite a tolerance!

Keeping on the car insurance theme, what will he have to pay for that ride of his? An irreplaceable antique magic sleigh which, dare I say, must have seen some phat pimping over the years (gold trim, numerous “turn-on red” re-sprays), and not to mention the fact that it’s powered by nine reindeer (lets not get started on pet insurance). He’s going to need some specialist cover for that beast, and it will cost…even if he does only make one journey a year.

Turning again to life insurance, pilots are generally considered “high risk” by insurance companies, not due to the chances of an accident, but instead because of stress. We all know that Santa is not renowned for his high blood pressure and short temper, but having said that, let’s take into consideration the extreme circumstances he has to operate under. The average speed at which he travels at is 650 miles a second, this is to make sure he can deliver presents to each of the 380 million kids (supposing they’ve been good enough) who believe in him.

Not only is this a tight schedule (he has 31 hours to make these deliveries), but we should also take into account the physical forces at play for a Class 1 obese brandy-soaked man travelling 3,000 times the speed of sound. That’s about 5,000,000 pounds of force on Saint Nick’s body. That’s over 17,000 times stronger than gravity. From an insurers point of view, the risk of Santa being vaporized (basically, all the liquid in his body turning to gas in less than a second), is about as high as someone who is sitting atop a thermonuclear bomb during detonation.

Merry Christmas!

Life Expectancy Calculator

2008-12-17T12:49:00.000Z

There are many life expectancy calculators out there and here are a selection of the most popular ones.

BBC Life Expectancy Calculator

MSN Money

Living to 100

Peter Russell

Your life expectancy is influenced by a number of factors, from your family history to your personal lifestyle.

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Life Insurance for Astronauts

2008-12-17T12:34:00.003Z

Everyone knows that when it comes to buying a life insurance policy, high risk jobs such as acting, working on an oil rig or being an aircraft pilot will all push up the price quite considerably. What, then, does this mean for astronauts - those heroes among us who choose to get blasted into the atmosphere in a matter of seconds? Let's have a look at the risks.

I suppose we must at first, at least, consider the lift-off element of space travel. Humans are physically limited by the amounts of G-forces they can endure and it would be possible (but very slow) to reach space whilst undergoing just one G, therefore it is usual for lift-off to push to between five and seven Gs with the aim of reaching space in just eight minutes. It is no surprise then that one of the biggest space fatalities happened during the take-off of space shuttle Challenger in 1986.

Interestingly, once in orbit, they are moving just as fast. But risks for the astronauts actually get worse when one considers the amount of radiation in space. Not only can cosmic radiation have an effect on blood marrow, whilst weakening the immune system and increasing the risk of infection - it can also have an affect on the medicines taken along. After recent reports, NASA are currently studying the damage that radiation can do to on-board pharmaceutics. Testers have found a "significant degradation" in certain medicines including Augmentin and Bactrim.

The affect of weightlessness is also not without adverse effects - despite it seeming to be one of the most alluring factors of space travel. Tests have shown that astronauts who have experienced weightlessness for significant amounts of time have been known to develop loss of bone density, a lacking in muscle strength and endurance, postural instability and aerobic capacity. It is suggested that if an astronaut was to ever travel to Mars, his/her endured bone mass loss due to weightlessness would mean upon his arrival he or she would simply collapse.

So if space travel is so dangerous, how much does life insurance cost for astronauts? Insurance specialist Ed Hinerman claims that a person who becomes an astronaut will need to be reassessed and will most probably have to start paying a flat extra on every thousand pounds of his policy. He states that if one was to pay £2,000 a year, an astronaut may have to pay over £16,000 per year flat rate. It must really be worth it.

Visit Post Office for term life insurance quotes and to buy a simple, cost effective life insurance policy, offering you a way to pay off your mortgage or leave your family a cash sum when you die.

Post Office Life Insurance for over 50s

2008-12-03T11:25:00.003Z

The Post Office has announced that it is to offer customers over the age of 50 the chance to buy life insurance over the counter.

While the Post Office already offers a multitude of over the counter products and services, including travel insurance, this marks the first time it has sold life cover in this way.

The new package, called Over-50s Life Cover, will offer instant protection from the moment it is purchased and will not require UK residents between the ages of 50 and 80 to undergo any medical checks.

Duncan Caesar-Gordon, the Post Office's head of protection, said: "In a time of such uncertainty people need peace of mind more than ever, which is why we are now offering instant protection over the counter."

Last week a survey by Barclays revealed that many people in the UK were cutting back on life insurance payments in order to save money during the credit crunch.

Life Insurance Starts at 50

2008-12-03T11:03:00.002Z

It's inevitable that when you enter that bracket of the over 50s, your financial future starts to loom large. Pensions in particular are just over the horizon, and it's usually at around this time that you start to truly assess the provisions that you've put in place for such a time as when you retire (either that or you curse your lack of forethought!).

But alongside this imminent financial upheaval, there is the question that's beyond that, thankfully still out of palpable reach - life insurance.

Inevitably, ones own mortality starts to be felt in more and more of your life, and consequently, thoughts turn to providing for your nearest and dearest in the event of your death. Although it's easy to shrug off the notion of dying, it pays to consider taking out a policy, or reassessing your existing one, at this stage - potentially before any personal circumstances change. Age, sex and health are the major contributing factors to how expensive the premium on your policy will be, so of course, when you start in to your fifties, insurers will change their offers to fit that watershed, half-century moment.

Many companies will offer a specific over 50s life insurance, with particular rates and guarantees entailed. Often there will a guarantee of acceptance without any medical check - mainly because your age has become the largest factor in deciding how much your premium will be - though it pays to be entirely honest with your insurer.

Closet smokers who are in denial will find it's too late, post-death, to convince your insurer that you only smoke occasionally - by which time the pay out may have been denied. However, due to your being over 50, the policy will be particularly easy to arrange, although it is still worth shopping around for the best offer for you.

Most insurers will incentivise their product, and it may have repercussions on the way that your bank or building society - if you decide to take out a policy with them - will treat you as customers.

Wrong Cover Life Insurance?

2008-12-02T16:59:00.002Z

According to the Association of British Insurers, more than half of British households have no life insurance—and of those who do invest in some protection, a large number have too little insurance, too much, or are simply paying for the wrong type of life cover. Simply having a policy is no longer enough.

There is a large range of options for life insurance, and it’s important to choose life insurance that will meet your current needs and provide adequate protection for your family.

You could be paying too much money for the wrong cover if:

You’ve gotten married, had children, taken out or paid off a mortgage, divorced or retired without reviewing your policy
You haven’t reviewed your policy within the last five years
You bought any type of life insurance without first determining exactly what type of policy you needed
You bought the life insurance cover that a salesperson told you was necessary, rather than seeking independent financial advice.

Choosing the Right Policy

Choosing life cover that will suit your lifestyle and family circumstances requires some careful consideration before you start shopping for policies. Depending on whether you’re married or divorced, have young children or adult children, are working or retired, your insurance needs are quite different.

Consider the following example. Let’s say you’ve just gotten married, and you and your spouse don’t plan to have children for around ten years. For the first ten years of your married life, the type of insurance you get may very well depend mostly on what you can afford. You won’t need a long term insurance policy, because your insurance needs will change when you start having children.

As a young couple with no children, a joint term policy is both cost effective and sufficient for your needs. However, when you have children, you will most likely want to increase the value of your policy, opt for two separate policies rather than a single joint policy, and also consider switching to whole life insurance. When your children become financially independent, you’ll again want to review your cover, and you may find that your insurance needs have reduced at this time.

One important point to note is that it’s better to seek advice from an independent insurance or financial adviser. An independent broker is in a much better position to shop around and find you the best prices, whereas a broker who represents a single provider is unable to provide this benefit—and sometimes they’re more likely to pressure you into choosing a policy that won’t meet your needs. You can find a database of independent financial advisers in the UK at www.unbiased.co.uk.

If you are certain about your life cover needs, you could also consider a discount broker such as Life Saver who will rebate some or all of their commissions to reduce the premiums you pay. Many of these brokers do not offer advice so this option is not suitable if you are unsure which product is right for you.

Insuring yourself for the Right Amount

How much should you cover yourself for? This depends not only on what you can afford, but also on your current lifestyle and expenses. A good rule of thumb is to choose a policy that is worth around ten times your annual income, before tax. However, if you have young children or a mortgage, you may want to consider a higher sum—for example, you might add the value of your mortgage to the sum assured if not already covered by another policy.

Note, however, that depending on your circumstances it may be more prudent to opt for a separate policy to cover your mortgage. If you don’t have much money to spare for insurance, choosing a decreasing term mortgage policy is a good option—this keeps your premiums lower, as the amount you’re insured for decreases as the mortgage is paid.

Action Steps

Review your life insurance if you have had a policy for more than five years or if your personal or financial circumstances have changed.
Take advice from an independent adviser if you are unsure about the type, amount or term of your policy.

Money - What does it mean for you?

2008-12-02T16:47:00.001Z

For some, money means security and having 'enough' in the bank makes us feel safe. For others, money means pleasure and the ability to easily acquire new goods and experiences. For some, money means freedom. It affords us choices and options for travel and exploration. And for some money means influence.

What about you?

Life is backwards!

2008-11-18T16:42:00.004Z

If you ask me, life is all backwards, its all the wrong way around!

You should start out dead and get it out of the way. This means you can claim the money on your life insurance policy so you have a nice lump sum to play with, go buy a sports car.

You get kicked out of the old peoples home you are currently residing for being too healthy. You go and collect your pension so not only do you have the life insurance money but also a monthly pension...nice! Your loaded and getting younger...cool!

You start work with no intense training and no stressful interviews. You simply give them a gold watch on your first day and you're all set.

You work 40 years or so, each arriving with fewer and fewer stressful responsibilities, until you're young enough to enjoy your retirement where you drink alcohol, party, and are generally promiscuous as you get ready for high school.

Then you go to primary school, you become a kid. You play and have loads of fun with no responsibilities,

Finally you become a baby, and then you spend your last 9 months floating peacefully in luxury, in spa-like conditions, central heating, room service on tap, and then you finish off as blissful explosion!

This is how life should be! It is all backwards!

Famous Life Quotes

2008-11-18T16:25:00.004Z

Live is a precious thing and these quotes from famous people sum it up in a few words.

To live is the rarest thing in the world. Most people exist, that is all.
Oscar Wilde

Live as if you were to die tomorrow. Learn as if you were to live forever.
Mahatma Gandhi

You only live once, but if you do it right, once is enough.
Mae West

A man who won't die for something is not fit to live.
Martin Luther King

Enjoy when you can, and endure when you must.
Johann Wolfgang von Goethe

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.
Mark Twain

I like living. I have sometimes been wildly, despairingly, acutely miserable, racked with sorrow, but through it all I still know quite certainly that just to be alive is a grand thing.
Agatha Christie

Wouldn't it be great if people could get to live suddenly as often as they die suddenly?
Katharine Hepburn

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Why Get Life Insurance?

2008-11-18T15:50:00.006Z

Surfing the web has made the process of applying for life insurance a lot easier than days gone by. You can now get life insurance application processed in a matter of minutes rather than days.

Life insurance is a tricky subject as nobody wants to think the worst and especially if you are healthy and feel no need for it. However, life is very fragile. You only have to look in your daily newspaper every week to see those who have passed away and they are of all ages, not just the elderly. Life can be taken without a moments notice and leave your loved ones struggling without your financial help, especially if you have a mortgage or other financial commitments. This is why life insurance is so important.

Why Get Life Insurance?
Ignoring life insurance could put your family in a desperate financial position during a time when they are grieving at your passing. The last thing you want is for them to worry about money and paying the bills.

The massive choice of life insurance policies online can be overwhelming so here are some tips on how to decide what is the best life insurance cover for you.

Ensure that you know exactly what you want. If you do not define your goals before you go looking for life insurance, you may end up selecting the wrong policy.
Life insurance isn’t restricted to family men and women alone as business partners can also take out life insurance. If you want to ensure that your business stays afloat even after your death, you can take life insurance. As long as you have a beneficiary, life insurance is definitely not a wasted effort.
The beauty about life insurance lies in the fact that the beneficiary will obtain a large amount of cash to continue the lifestyle he or she was living before. The life policy you buy can eventually be used by beneficiaries to pay off a mortgage on the home. Life insurance ensures that your family has the life that they have always been used to.

Term Life Insurance
Term life insurance policy encompasses a contractual agreement between you and an insurance company in which you agree to pay a certain amount as premiums for a number of years. If you die before your term life insurance is up in a term life insurance, your recipient will receive the amount that the policy is worth.

Whole Life Insurance
A whole life insurance is one that covers you for the duration of your life. With a whole life insurance, you get to save some cash and use the cash for useful things such as your child’s education in college. Whole life insurance gives you the opportunity to gather more money through compulsory savings.

Shop around online for life insurance using a combination of price comparison sites and independent websites to get the best product at the best price for you.

Live Longer with a Mediterranean Diet

2008-11-17T15:27:00.001Z

Adopting elements of a Mediterranean-style diet, which is high in fruit and vegetables and low on red meat and dairy produce, can reduce the risk of cancer by almost a quarter, according to a major study of people's eating habits.

It has been thought for some time that making dietary changes such as eating more olive oil and less butter could lead to a significantly lower incidence of heart disease, and now comes detailed evidence of how it can dramatically cut the chances of all types of cancer developing.

The research shows that just two elements of the Mediterranean diet added to daily food intake can cut the possibility of cancer taking hold by 12 per cent. Increase that to six items a day and the prospect of the disease being diagnosed falls by a staggering 22 per cent. Adding two elements to the daily diet could simply be eating more pulses and consuming less red meat.

More than 26,000 Greek men and women were studied over eight years by the scientists who found that consuming high levels of monosaturated fats – the "good" fat found in olive oil – in relation to the "bad" saturated fats found in dairy produce had the single biggest effect in relation to lowering the cancer risk from the diet. More olive oil and less butter reduced the risk by 9 per cent.

"Of the 26,000 people we studied, those who closely followed a traditional Mediterranean diet were overall less likely to develop cancer," said the study leader, Dimitrios Trichopoulos, professor of cancer prevention and epidemiology at Harvard University. "Although eating more of one food group alone didn't significantly change a person's risk of cancer, adjusting one's overall dietary habits towards the traditional Mediterranean pattern had an important effect."

The study, published in the British Journal of Cancer, monitored the prevalence of all types of cancer from stomach and bowel to liver, cervix and brain tumours. They looked at men and women, and took into account other risk factors, such as smoking and lifestyle.

The research is part of the European Prospective Investigation into Cancer, a unique and ongoing look at dietary habits and other biological and lifestyle characteristics of more than half a million people across Europe before they were diagnosed with cancer or other chronic illnesses.

The scientists carried out detailed surveys of each person to study the sort of food they regularly ate and in what quantities.

The nine food groups measured were monosaturated and saturated fats, fruits, vegetables, legumes such as peas and lentils, cereals such as wholegrain bread and pasta, meat, dairy food, fish and alcohol.

"The researchers found that people who more closely followed a traditional Mediterranean diet had a lower incidence of cancer. Importantly, lower risk wasn't only seen by completely adopting the traditional Mediterranean diet, closer conformity also reduced cancer risk. And the more changes, the bigger the effect," said a spokeswoman for Cancer Research UK, which helped to fund the work.

Cancer specialists said the best advice for people to avoid getting cancer was not to smoke, to take regular exercise and eat a balanced diet rich in fruit and vegetables and low in red meat and saturated fats. "This is an interesting study but the best advice for cancer prevention remains to eat a healthy diet, to be regularly physically active and to maintain a healthy weight," said Rachel Thompson, science programme manager for the World Cancer Research Fund. "Looking at all the evidence on diet, people looking to reduce their cancer risk should aim to eat plenty of wholegrains and fruits and vegetables and limit their intake of red meat, salt and energy-dense foods."

Sara Hiom, director of health information at Cancer Research UK, said: "This helps us to understand more about the simple changes a person can make to their diet to reduce their risk of cancer and improve overall health. Although we know that unhealthy diets generally and being overweight are important risk factors for a number of cancers, the link between individual foods or food types and cancer has been less clear.

"This research highlights the importance of maintaining a healthy balanced diet to reduce your risk of cancer. It shows there are a number of things you can do, and there is no one 'superfood' that can stop you developing the disease."

Younger generation should be more aware of the benefits of insurance

2008-11-17T13:22:00.001Z

The younger generation has been advised to take out insurance policies as more people cut back on life insurance as a bid to save money during the financial economic crisis, it has been revealed.

According to a study conducted by Fairinvestment 24% of those who participated admitted to not having life insurance, medical insurance, home insurance, payment protection insurance or do not take out travel insurance when going on holiday.

Spokesperson Rachael Stiles, of the website found the situation quite “concerning.” She said: "As budgets get tighter, I can understand why Brits are cutting back, but insurance should be one area that is sustained.”

The study found that the older generation tend to take out life insurance policies more than the younger generation. Only 10 per cent of those aged 19-21 invested in a life insurance policy while 53 per cent of 51-55 year olds had taken out life insurance policy.

“When it comes to life insurance, young people should be more aware as you never know what is around the corner. And, if you are the main bread-winner and have a mortgage or rent to pay and something happened to you, your partner or loved ones would be left to foot the bill, whereas a life insurance policy could cover such expenses.

A 25 year old male can get a policy for as little as £6 a month, making it an affordable expense," she added.

10 Things Surprisingly Good For You

2008-11-12T14:09:00.008Z

We are forever being told that this is bad for you, that is bad for you. If you are like me and are sick to death of being told what to eat, drink then you will probably like this! Here are 10 things that people tell you are bad but actually have surprisingly healthy aspects to them.

10. Ice Cream
Ice-cream is a low GI (glycemic-index) food. This means that it is a slow sugar release food that keeps you satisfied for a longer period of time than a high GI food. For that reason, you are less likely to binge after eating ice-cream. 75 grams of Ben and Jerry’s Cookies and Cream ice-cream contains only 114 calories compared to a slice of cheesecake with 511 calories.

Furthermore, ice-cream is made of milk which contains many essential nutrients and vitamins. 1 cup of milk contains up to 30% of a man’s daily recommended intake. Other nutrients in ice-cream are biotin, iodine, potassium, selenium, vitamins a, b12, D, and K. Studies show a possible link between milk consumption and a lowered risk of arterial hypertension, coronary heart disease, colorectal cancer.

Interesting Fact: In the 5th century BC, the ancient Greeks sold snow cones made with fruit and honey in the markets of Athens.

9. Dirt
Throw away the rubber globes! Dirt is back in vogue! Remember the days where kids played in dirt, food was served with bare hands, and straws didn’t come in individual wrappers? It turns out - they were healthier days than our modern sterile ones! Early childhood exposure to bacteria, viruses, and parasites has been found to give a massive boost to our immune systems, making us less likely to get sick when we do come in to contact with various bugs. Research has found that children with a dog in the home are less likely to suffer allergies, and regular social interaction can reduce the risk of leukemia by up to 30%. Those are statistics not to ignore - so throw away the anti-bacterial cleaners and get dirty!

Interesting Fact: There are as many as 10 times more bacterial cells in the human body than human cells! The vast majority of these are harmless.

8. Stress
Stress is universally considered a bad thing - in some cases people have successfully won lawsuits against companies for work-related stress. But, what most people don’t know is that a little stress goes a long way to making us healthier. In short doses, stress can help boost the body’s immune system. In the first stage of stress (the “alarm” stage - often known as the “fight or flight” response) the body produces cortisol - a stress fighting hormone which has many benefits to the body. Stress can give a feeling of fulfillment - when this is the case it is called “eustress” as opposed to “distress”.

Interesting Fact: The term “stress” and the mental properties of it was not known before the 1950s. Until that time it referred simply to hardship or coercion.

7. Caffeine
Not only is coffee tasty, it is a mild stimulant with many medical uses. Caffeine contains a muscle relaxant that is very beneficial to people with bronchial problems - it can alleviate the symptoms of asthma. Additionally, caffeine releases certain fatty acids in to the blood stream that become a useful source of fuel for muscles. It even seems that the only serious side-effect to too much caffeine is a small amount of body-weight loss - a danger if you are anorexic. Caffeine should be avoided by people with fecal incontinence as it loosens the anal and sphincter muscles.

Interesting Fact: Caffeine can be toxic to animals, in particular dogs, horses, and parrots. It also has a much more significant effect on spiders than humans.

6. Red Wine
Red wine contains a group of chemicals called polyphenols (once called Vitamin P) which have been found to be very beneficial for health. They reduce the risk of heart disease and cancer. Wine has also been found to be an effective anti-bacterial agent against strains of Streptococcus (found most often in the human mouth) which can help reduce infections. Some wine varieties have extra health benefits; Cabernet Sauvignon appears to reduce the risk of Alzheimer’s Disease. In addition to the benefits already listed, wine is chock full of antioxidants which play a huge role in the health of the human body. The wines found to have the greatest benefits are found in the South of France and the Sardinia region of Italy.

Interesting Fact: Wine originated in the regions of Israel, Georgia, and Iran, around 6000 BC.

5. Chocolate
As a result of recent research into chocolate and health, it appears to be something of a panacea (cure-all) - coupled with the great taste and mood enhancing properties, it might be seen as a wonder drug! Cocoa or dark chocolate improves the overall health of the circulatory system, it stimulates the brain, prevents coughs, prevents diarrhea, and may even be an anti-cancer agent.

Like coffee, chocolate is toxic to many animals. A BBC study indicates that melting chocolate in your mouth increases brain activity and the heart rate more intensely than passionate kissing, with the effect lasting four times longer after the activity ends. Eating regular small quantities of chocolate reduces cholesterol and the chances of a heart attack. Sign me up for some of that medication!

Interesting Fact: Chocolate has been used as a drink since at least 1100 - 1400 BC.

4. Cannabis
Cannabis is said to be beneficial for over 250 conditions. For this reason it is legal on prescription in a number of Western countries. Cannabis is believed to help with arthritis, asthma, depression, glaucoma, and pain. It is also reported to be a good treatment for constipation. Cannabis is also useful in dealing with the sideeffects of treatments for cancer, AIDS, and hepatitis. Cannabis has been used medicinally for over 3,000 years! Strangely, the cultivation and use of cannabis is outlawed in most countries.

Interesting Fact: Evidence of the use of cannabis as a non-medicinal drug exists as charred seeds found in Romania dating back to the 3rd millenium BC.

3. Beer
The moderate consumption of beer has been associated with the lowered risk of head disease, stroke, and mental decline. In addition, brewers yeast (used in the production of beer) contains many nutrients that are carried through to the final drink: magnesium, selenium, potassium, phosphorus, biotin, and B vitamins. For this reason, beer is sometimes referred to as “liquid bread”. In 2005 a Japanese study found that low-alcohol beer may contain strong anti-cancer properties. Contrary to popular belief, a “beer belly” or “beer gut” is not produced by the beer, but rather overeating and lack of exercise.

Interesting Fact: Beer is one of the oldest beverages - dating back to the 6th millennium BC.

2. Smoking
Often referred to as “Smoker’s Paradoxes”, there are a number of therapeutic uses of nicotine or smoking. For example, smokers are less likely to need surgery to provide extra blood to their heart after an angioplasty, the risk of ulcerative colitis is reduced, and it even interferes with the development of Kaposi’s sarcoma (a type of cancer of the lymphatic endothelium). Perhaps most surprisingly, is that there are connections to smoking and a reduction in allergic asthma. There is also a large body of evidence to suggest that smokers have a dramatically reduced risk of developing Alzheimer’s disease and Parkinson’s Disease. Nicotine is currently being investigated as a treatment for ADHD, and Schizophrenia.

Interesting Fact: Tobacco smoking has been a practice of humans since at least 5000 BC.

1. Pornography
Amidst the loud angry cries against pornography, a few serious scientific studies have been performed on the subject. It seems that men and women who view pornography, have improved sex lives, better sexual knowledge, and an overall better quality of life. Surprisingly, one study found that the more that pornography is viewed, the greater the improvements. In an extensive study performed in Australia, the majority of married respondents stated that they believed that pornography has had a positive effect on their marriage. While clearly not always linked to pornography, studies have found that men who had fewer orgasms were twice as likely to die of any cause as those having two or more orgasms a week.

Interesting Fact: Pornography (and the anti-pornography movement) as it is understood today is a concept of the Victorian era (19th century) which was extremely moralistic. Sexual imagery was not taboo before that time.

Final Note
Of course, moderation is the key! Everything in moderation! So in future when someone whines at you - you can point them in the direction of this webpage and have the last laugh!

Perhaps if you are considering life insurance and to get a cheap quote, do not smoke.

Sources:
1. Alzheimer’s disease is associated with non-smoking by Carol Thompson
2. Impact of Smoking on Clinical and Angiographic Restenosis After Percutaneous Coronary by Cohen, David J.; Michel Doucet, Donald E. Cutlip, Kalon K.L. Ho, Jeffrey J. Popma, Richard E. Kuntz
3. Smoking Cuts Risk of Cancer by United Press International
4. Caffeine: Perspectives from Recent Research by P.B. Dews
5. Using spider-web patterns to determine toxicity by R. Noever, J. Cronise, and R. A. Relwani
6. From psychological stress to the emotions: a history of changing outlooks by R. S. Lazarus
7. Effects of moderate alcohol consumption on cognitive function in women. by Stampfer MJ, Kang JH, Chen J, Cherry R, Grodstein F.
8. Beer as liquid bread: Overlapping science by Bamforth, C. W
9. A dynamic partnership: celebrating our gut flora by C. L. Sears
10. Dairy’s Role in Managing Blood Pressure by the National Dairy Council
11. Ice Cream - What’s in a Scoop? by Pat Kendall
12. The Lost Civilizations of the Stone Age by Richard Rudgely
13. Medical Use of Cannabis in California by Dale Gieringer
14. Dark Chocolate Could Help Hearts by Emma Ross
15. Chocolate can do good things for your heart, skin and brain by Marjorie Ingall
16. Chocolate better than kissing by BBC News
17. Polyphenols and disease risk in epidemiologic studies by Arts, I.C. and P.C. Hollman
18. Antibacterial Activity of Red and White Wine against Oral Streptococci by Daglia, M.; A. Papetti, P. Grisoli, C. Aceti, C. Dacarro, and G. Gazzani
19. For Life Insurance quotes, I recommend you visit the Post Office website at http://www.postoffice.co.uk
20. Cabernet Sauvignon Red Wine Reduces The Risk Of Alzheimer’s Disease by ScienceDaily
21. From red wine to polyphenols and back: A journey through the history of the French Paradox by D. W. de Lange
22. Now that’s what you call a real vintage: professor unearths 8,000-year-old wine by David Keys
23. Vice or Virtue? The Pros of Pornography by Matthew Hutson
24. Study concludes porn can be good for you by Nick Grimm
25. Sex and Death, Are They Related? by the British Medical Journal

The Taboo Subject of Life Insurance

2008-11-04T14:38:00.002Z

Life insurance is a tough subject to think about. It only takes a coastal walk along a sheer cliff-top, or a near miss on the drive home from work to realize that it probably is something one should consider sooner rather than later, especially in regards to the fact that the younger and healthier you are, the cheaper your premiums will be.

The real problem with life insurance is, well, it’s never fun.

Car insurance is equally dull. But because it is the law to be insured, the majority of drivers get on with it and make sure their policy is up to date. That said, unlike the history of life insurance, the history of car insurance is sprinkled with many humorous stories of stupid people claiming for stupid things. Some claims forms have featured such absurdities as: ‘I had been driving for forty years when I fell asleep at the wheel and had an accident.’ And: ‘On approach to the traffic lights the car in front suddenly broke.’ And my personal favourite: ‘The accident occurred when I was attempting to bring my car out of a skid by steering it into the other vehicle.’

In terms of humorous home insurance claims, there is the famous story (sadly later proved to be fiction) of the man who insured 24 particularly expensive cigars, smoked them, and then attempted to claim his insurance because they had been destroyed by fire. He succeeded in court, but once he’d cashed his cheque, the insurance company sewed him for arson.

Back to reality though, and the claim of Philip Clough. After shoving some washing into his machine before going away for the weekend, he returned to find the machine still spinning on a boil wash. The insurance company subsequently denied payment because they believed their policy didn’t cover steam damage. Luckily for Clough though, the courts saw things differently on grounds that steam is H2O, just as water is.

Although ironic, it seems to me that if the general public were to learn to laugh about life insurance, then maybe people would be able to think about it more seriously. Quite frankly, who wants to contemplate what’s going to happen after you’ve gone?

It is almost a taboo subject for some people, unless it comes up during conversations about fraud or disease, it seems barely interesting at all and thus less at the forefront of our collective imagination. But the really funny thing is that it is the only policy that is pretty much certain to be paid out.

Let’s talk about life insurance

2008-11-04T14:35:00.003Z

A casual journey from the boring subject of Life Insurance to the fascinating world of Cryogenics.

Life insurance is never a fun topic to discuss. Nevertheless I have recently found that I am developing an interest in when would be the best time for me to take out a policy. As it stands there are two schools of thought on whether someone who falls in the ‘30 and under’ bracket should take out a life insurance policy. Those pro-LI folks argue that it is good to do so now due to the low premiums for people who are young and healthy. Yet, on the other side of the fence, the anti-LI guys are saying that young people will be far smarter if they put their savings into high-interest saving accounts instead.

Both arguments seem fair. However, I have now developed a morbid curiosity into what I would like to happen to me in the end. There are many options, including: church burial (which seems a little boring nowadays), sea burial (but I think I need to be a sailor for this), home burial (too weird?), cremation and burial (too indulgent?), cremation and scattering (ok), cryopreservation?

The latter may seem like a joke too many, but there have been at least 150 recorded cases of cryopreservation to date (Walt Disney isn’t one of them); and the science is still advancing with the use of vitrification as opposed to the classic practice of freezing – as perpetuated by science fiction.

But what does this have to do with life insurance? Ben Best, President of the Cryonics Society of Canada, is confident that cryonics patients are likely to be reanimated in our lifetime (within 50-100 years). Despite this, the cost of being cryopreserved is famously expensive (up to $200,000), but most cryonicists pay for the privilege with life insurance policies. Consequently, if you’ve ever considered being cryopreserved and you’re under 30, not only are you of the most likely generation to witness the technology being a reality, but you should get the necessary funds in order because – as it stands – the likelihood of cryonic reanimation does not yet preclude an insurance payout.

It’s all very interesting. Though, I’m not completely sure I would want to be cryopreserved. However, wouldn’t it be great to see a world of hover-boards, mile-high buildings and no Coldplay in the charts?

Still, even if I’m not entirely convinced with cryo-technology, at least the miserable inevitability of having to deal with life insurance at some point would be much more bearable if I face up to it at a younger and cheaper age. And if I ever need to be cheered up about the subject, I can have the following thought at the back of my mind: one day, I may be just a little closer to living that Hans Solo fantasy of mine...

Unfair or Logical

2008-10-27T11:03:00.002Z

Are Life Insurance companies unfair or simply being logical? Newspaper reports in the early months of 2008 that life insurance companies will start charging overweight customers up to 50% more in premiums, begs the question whether they are being unfair or simply driven by actuarial logic.

Some people might consider it "unfair" that because they are overweight, they should have to pay, for example, £1,500 a year for a £150,000 life cover whereas his leaner peers will be paying only £1,000.

But the sheer logic of the situation is that life insurance companies are in the business of assessing the risk of an early death of their policy holders. And obesity is a medical condition with attendant health problems that can lead to an early death. Obesity has been linked as a major contributor, for example, to heart and liver problems, diabetes and certain forms of cancer. Many insurers, therefore, are paying increasing attention to the critical "body mass index" (or BMI) in new proposals for life cover.

The body mass index is a simple measure, widely used in medical circles, as an indicator of obesity. It is the index derived by dividing a person's weight (in kilograms) by their height (in metres) and dividing that result by their height (in metres) once again. A resulting index of 30 or more is classified as "obese" and a result of 40 or more as "very obese". According to responses to press questions from Britain's largest life insurance company, some 13% of new proposals are being made by individuals reporting a body mass index in excess of 30. This appears to be the marker at which many life insurance companies are introducing higher premium rates.

The actuarial logic of the situation is not lost on the Association of British Insurers, of course, who have said that obesity increases the risk of contracting certain diseases. A spokesman commented that premium increases for the overweight should be considered in the same light as those increases already applied to smokers or to those with previous or pre-existing medical conditions. In fact, when taken together, the difference in the cost of premiums for someone of the same age and gender in the lowest and in the highest risk groups can be as high as 400% - reverting to the example used earlier, that would be the difference between £1,000 and £4,000 each year for £150,000-worth of life cover.

Just in case these figures give any encouragement to lie about your weight or height on the proposal form, there is a salutary warning from the Financial Ombudsman. The latter recently determined a disputed claim arising from the death of a 37 year-old man who had declared to his insurers a height of 6ft and a weight of 16 stone. He died some months after the start of the life cover, but his life insurance company rejected the claim when it was revealed that he was actually 5ft 9in tall and weighed 21 stone (measurements that would have increased his premium by 275%). The Financial Ombudsman ruled that the insurer had been right in rejecting the claim.

Confused.com is one of the UK's biggest and most popular price comparison services helping consumers save money.

How do I save money on Life Insurance?

2008-10-24T16:24:00.003+01:00

When shopping to buy life insurance, the best way to save money on your cover and still get everything you need is to shop around to find a provider that has what you want at a reasonable price.

Life insurance is an insurance policy that will pay out a specified amount of money to a beneficiary at the time of your death and will help your loved ones to pay for your funeral expenses as well as have some money left over for their own needs. You should consider the different types of life insurance to make sure you have the coverage you need. The various types are:

Permanent life insurance
This type of life insurance has a cash value that is paid to your beneficiary at the time of your death and this cash value increases over the life of the policy. You can benefit from having this kind of cover while you are alive because you can draw off this value and invest it for your own needs.

Term life insurance
Term life insurance has the cheapest cover because it is for a specific length of time. Once that term runs out so does your life insurance, but you can renew the policy for a further term.

Whole life insurance
Whole life insurance has a specified value in a guaranteed benefit and the premiums stay the same for the life of the policy.

Universal life insurance
Universal life insurance has an investment associated with it. Part of the premiums you pay for the cover will go towards the insurance and part will go towards an investment through which you can earn money.

Once you decide what type of life insurance you want, there are ways you can save money in the amount of premiums you have to pay. Term life insurance has the lowest premiums because the pay out is not guaranteed.

You will not be able to purchase this type of policy if you have any serious health problems, such as heart disease or cancer because this increases the likelihood that you will die during the term. You will have to undergo an examination by a physician to prove that you are in good health. If you do not smoke, you will also receive a lower premium.

If you decide that you need a second life insurance policy, you can save money by getting a rider on your existing policy. This is an addition to your policy that will expand your coverage without affecting the cash value of the plan. The older you are the more you will have to pay for life insurance cover. The best advice is to take out a policy when you are young.

A person in their mid-twenties will pay a lot less for the same amount of coverage as well a person in their mid-fifties. When you buy life insurance when you are young, you have the option of locking in a level premium, which means the premium won’t increase as you age.

Smoking and Life Insurance

2008-10-24T15:50:00.007+01:00

Why wait to transform your finances as well as your health by quitting the fags? If the obvious health benefits haven’t convinced you yet, maybe the financial benefits will! If you give up smoking - for example at New Year, or on National No Smoking Day on 8th March or any other time- you’ll not only save thousands on not buying cigarettes but in 12 months’ time you’ll benefit from cheaper life insurance too.

Life insurers classify you as a smoker if you have used ANY tobacco products in the 12 months prior to applying for life insurance. For well-documented health reasons, smoking raises the chance of you eventually making a claim on your life insurance. Insurers weigh up the likelihood of an applicant making a claim and price the cover accordingly.

The Facts
A 35-year-old man in good health will pay £8.85 per month for £100,000 of cover over 20 years if he is a non-smoker. This rises by a staggering 78% to £15.75 if he is classed as a smoker – costing him £1,656 extra over the term of his policy.*

It does not get much better for a woman in the same circumstances; her cover would rise 72% from £7.25 to £12.45 per month.*

Honesty is the only policy - If you do smoke it is not worth trying to cover up the fact in order to pay less. If your smoking comes to light when the insurer is assessing a claim, they can easily refuse to pay out.

You may even be asked, as part of the application process, to take a saliva test to confirm that you are a non-smoker. If you have lied, your application may be declined and other insurers could then refuse to cover you.

Paying the right price - It’s simple: if you want life insurance and you are a smoker it’s going to cost more.

If the potential savings have tempted you to give up, or you are giving up anyway, then look to change your policy 12 months after using your last tobacco product, knowing that the insurer will newly classify you as a non-smoker.

If you have survived 12 months without a cigarette, don’t forget to tell your insurance company. Shop around on-line to find the best deals when renewing your policy - it is likely that the best premium will be from a different life insurance provider to the one you currently use.

Health
You’ll feel and look better and fitter and may live longer
Cash
You’ll save hundreds on your life insurance as well as the fag packets
Warmth
Legislation will ban smoking in the workplace and all pubs, clubs and restaurants in England by 2007 so if you want to smoke you will be out in the cold. Some already have a total ban in place.

Use this Smoking Calculator to find out how much you can save on your life insurance if you stop smoking.

Is Suicide Covered on Life Insurance?

2008-10-24T15:27:00.003+01:00

The unfortunate and depressing issue of suicide has become a staggering piece of harsh reality in today’s world. The US rank 46th in the world with 11,000 self-inflicted deaths per year. Here in the UK we are at 7000 position.

This has become a serious issue for many countries whether the factors be family issues, health issues, money problems, or relationship failures.

We’ve all seen this scenario before, either in a movie or on the evening news. A spouse, distraught over his or her family’s crushing financial burden, decides to commit suicide so that the surviving family members can collect his or her life insurance benefits. For Jimmy Stewart in It’s a Wonderful Life, his intended act of suicide was halted through the intervention of a guardian angel and everyone lived happily ever after. Unfortunately, this is not the way the story ends for families living in the real world.

What really happens to a family in the aftermath of a suicide attempt can be many times more devastating than the original circumstances that led to the attempt. If the attempt is successful, then the survivors may be left with a double tragedy. Not only have they lost a loved one, but what if the relevant life insurance policy will not pay benefits in the event of a suicide? Now the surviving family members are looking at even more debt because of funeral and burial costs and the deceased’s lost income.

If the suicide attempt is unsuccessful and there is no lasting injury, then the disturbed individual and his or her family are very lucky. There is no loss of a loved one and psychological counselling can be sought. Most health insurance policies will even pay for the treatment. If, on the other hand, a suicide attempt leaves the individual physically incapacitated permanently or for an extended period of time, this could spell even greater financial disaster for the affected family members. If the individual is also the primary wage earner, then the family has lost its major source of income (along with any attendant benefits) and must pay for physical care that may not be covered by any insurance policies.

The information that follows gives a brief overview of different insurance policies and what they will or will not cover in the case of a suicide or suicide attempt.

Suicide Coverage

The desperate soul who rushes out to buy an insurance policy and then immediately commits suicide is misguided in two respects: first, he or she should have sought help from a mental health professional for assistance in dealing with such self-destructive thoughts; and, second, the life insurance policy won’t pay if the suicide is committed immediately after its purchase.

Most life insurance policies have a suicide clause. Either death resulting from suicide is not covered at all or a death resulting from suicide is covered only after two years have passed since the date of the policy’s purchase. Why the two-year period? It’s thought that a clause that excludes suicide as a valid cause of death in the first two years of the policy’s life will stop someone contemplating suicide from buying the policy on impulse. There’s no immediate benefit, so they won’t buy the policy. Even if a person intent on committing suicide does buy a policy, the chances that they will still want to end their life after waiting two years is slim. There are life insurance policies that do not exclude suicide at all, but most of these plans are prohibitively expensive.

Coverage for Suicide Attempts

The most relevant type of life insurance coverage for someone who has survived a suicide attempt is health insurance. Obviously, someone who attempts suicide is in need of psychological help and many health insurance plans will pay for this. Some families might be hesitant to use this benefit because of the stigma attached to suicide and may be concerned that word of the family member’s mental health problems will become the subject of workplace gossip. Fortunately, those who handle and view insurance claims in an office are bound to strict rules of confidentiality and are prohibited from discussing any worker’s medical or psychological condition. The family can seek treatment and know that word of their situation will not be spread.

If someone survives a suicide attempt but sustains injuries that are permanent or that require long-term care, the situation can be pretty grim. Most health insurance companies will not cover injuries that are self-inflicted. So, things like hospital bills, rehabilitation costs, doctor’s bills, home care attendants and all other potential medical necessities would have to be paid for by the individual who attempted suicide.

How does Life Insurance work?

2008-10-23T12:02:00.001+01:00

Life insurance actuaries look an individuals age, sex, health and habits and decide when someone with that profile is most likely to die. They then consider how much cover the buyer wants to purchase and set the premiums accordingly.

For example, smokers are (on average) likely to die sooner than non-smokers. Insurance companies know this means they will probably have to pay out a little sooner whenever they insure a smoker, and therefore charge people who smoke a higher premium to reflect this. This principle forms the basis of all life insurance.

There are two main types of plan to choose from:

Term Life Insurance
This is the cheapest option, and pays out only if the holder dies while the policy's fixed-length term is in force. If the holder survives until the end of the term, they get nothing back. People often time their insurance to run only until a big family commitment ‚ such as the children's education, had been cleared.

Whole of Life Insurance
As the name suggests, these policies remain in force right through the buyers life. It follows that the insurance company will have to pay out in almost every case, and premiums are therefore higher than those charged on term life insurance plans. Some policies demand that premiums be paid all the way up to the holders death. Others become paid-up at a certain age, and waive premiums from that point onwards.

What Does The Cover Provide?

There are a number of different types of Term and Whole of Life Insurance plans on the market. The cover which is provided will depend on the type of plan taken out. The types of plans available are as follows:

Term Life Insurance

Level Term
The plans potential pay out remains the same for the full term of the policy.
Decreasing Term
The level of cover gradually reduces over the policy term to match a reducing liability such as the amount left to repay on a mortgage loan.
Increasing Term
Cover offered and premiums paid gradually increase in line with inflation. Designed to ensure the amount of cover purchased remains realistic and is not eroded by the effects of inflation over time.
Renewable Term
Allows plan holders to extend their cover for a further term with no health check.
Convertible Term
Allows holders to swap their term cover for a whole of life or endowment policy with no health check.
Family Income Benefit
Pays the surviving family a regular income instead of a lump sum for the remaining term of the policy.

Whole of Life Insurance

The majority of whole of life insurance policies are unit linked which means that premiums are invested into a fund and the cost of the protection is deducted from the fund as it grows. When a plan is taken out there is a choice of 'Maximum' or 'Standard' basis.

Maximum basis gives a very high level of cover for the monthly premium. Whilst this level of cover will be guaranteed for 10 years it is very likely that there will have to be an increase in premiums after each of the regular reviews. These usually take place after 10 years then after every 5 years.

Standard basis gives a lower level of cover for the premium, but is more likely that this level of cover and premium will stay the same throughout the policyholders life.

Tips for Life Insurance

2008-10-23T11:50:00.002+01:00

What should you do when shopping for life insurance? Here are our tips:

Shop Around
Don't head straight for the nearest high street bank or direct provider just because they are familiar. Most banks and high street providers are tied to one insurer and won't be able to offer potentially cheaper and better quality cover from other providers.

Use an independent insurance specialist who can compare policies and premiums. Some offer discounted premiums and free advice to help you choose the right policy and provider for your circumstances.

Comparison websites online are an excellent option as they do the hard work for you and search for the best quotes. Visit Post Office® for life insurance quotes and to buy a simple, cost effective life insurance policy, offering you a way to pay off your mortgage or leave your family a cash sum when you die.

Know What You Need
There are many different types of life insurance and policy options that are designed for various needs. To ensure you aren't disadvantaged or paying too much for cover you don't need, either research the options or take independent advice.

Work Out How Much You Need
Generally speaking, your life insurance should provide a lump sum big enough to pay off your mortgage and other debts, or to invest to provide an income to support your dependants for a sufficient time such as six months or a year.

Guaranteed Premiums
Are the premiums Guaranteed? This means the premiums are guaranteed to remain the same throughout the term of your policy. This is opposed to `Reviewable´ premiums which, as the name suggests, are reviewed usually every 5 years and can increase at the discretion of the insurance company.

Declare All Material Facts
When applying, be sure to answer all questions fully and honestly. Declare everything that you are aware of and if in doubt, declare it anyway. Failure to declare even a minor issue can result in a claim being declined. Do not give the insurance company any excuse to refuse your claim.

Write Your Policy in Trust
Even an average life insurance pay out can easily take the value of your estate on your death over the inheritance tax allowance. Anything over this threshold is liable for 40% tax when this can easily be avoided by putting the policy in trust. Its free and simply requires completion of a trust form available from the insurance company. Once in trust, the policy remains outside your estate so won't increase its value on your death.

If Unsure Take Advice
Life insurance can be as simple as insuring your car if you know what you need and your affairs are simple. However, if you're affairs are a little more complex you should take independent advice.

How Much Life Insurance?

2008-10-23T11:48:00.001+01:00

There is no right or wrong amount of life insurance as any cover is better than none at all, but generally speaking you should insure to provide a lump sum big enough to remove the burden of any debts and, ideally, have enough left over to invest to provide an income to support your dependants for a time.

The first consideration is to clarify what you want the life insurance to protect. If you simply want to cover your mortgage then an amount equal to the outstanding mortgage debt can achieve that. However, if you want to prevent your family from being financially disadvantaged by your death and provide enough cash to support their current lifestyle, then there are a few more variables you should consider.

What are your family expenses and how would they change if you died?
How much would outgoings increase on things like childcare if you were to die?
How much would the family income drop if you were to die?
How much cover do you get from your employer or company pension scheme and for how long?
What insurance policies do you have already and how far do they go to meeting your needs?
How far will your savings go?
What state benefits are there that could give extra support to meet your family´s needs?
How would inflation affect the amount of your cover over time?

The amount of life insurance you choose really is up to you and will depend upon your personal situation. The main point to remember is that any amount of financial protection is better than none.

However, if you are in doubt what is right for your needs, consult an independent financial adviser who can give you specific advice.

Term Life Insurance vs Whole Life Insurance

2008-10-23T10:46:00.001+01:00

Whether you’re simply considering purchasing a life insurance policy, or have already made the decision to purchase a life insurance policy, it’s important to know the difference between a term life insurance policy and a whole life insurance policy. Knowing these differences will help you choose the best life insurance policy for you.

The most recognizable difference between term life insurance policies and whole life insurance policies is the fact that a term life insurance policy will cover you for a certain number of years, whereas a whole life insurance policy will cover you for your entire life. If you’re only looking for life insurance coverage for a specific amount of time, a term life insurance is probably your best bet. However, if you wish to be insured for the rest of your life, you should purchase a whole life insurance policy.

Another difference between term life insurance policies and whole life insurance policies is that whole life insurance policies offer a tax-deferred accumulated cash value. This acts as an investment component. Some people are interested in the ability to invest using their life insurance policies, so they choose to purchase a whole life insurance policy. However, if you use other methods of investment, a term life insurance policy is probably the best for you.

A third difference between term life insurance policies and whole life insurance policies is the difference in price. Term life insurance policies are generally cheaper than whole life insurance policies; however, whole life insurance policies often offer fixed annual premiums, so you won’t have to worry about your rates increasing if your health begins to deteriorate. Most term life insurance companies will raise your premiums based on the current condition of your health, as well as your age.

So, when you begin your search for the perfect life insurance policy, take these differences into consideration and decide which type of policy is best for you.

Universal Life Insurance

2008-10-23T10:16:00.001+01:00

Buying life insurance is by no means an easy task. There are several policies to choose from, each with elements that we want and need. The two most popular kinds of life insurance policies are term life insurance policies and whole life insurance policies.

If a term life insurance policy and a whole life insurance policy got married and had a child, the child would be a universal life insurance policy. Universal life insurance policies are a mix of term life insurance policies and whole life insurance policies. Just like all children do, universal life insurance policies have a few positive features and a few negative features of each parent, i.e., the term life insurance policy and the whole life insurance policy.

Like a whole life insurance policy, a universal life insurance policy offers an investment component; however, universal life insurance policies are generally less expensive than whole life insurance policies. This is a good thing for those of us who want the cash value accruement of a whole life policy but can not afford to purchase one. It should be noted, however, that earning a cash value isn’t guaranteed. Coverage can even end if your account gets low enough.

Like a term life insurance policy, a universal life insurance policy is usually not as expensive as a whole life insurance policy. However, even though an accumulation of cash value isn’t guaranteed with a universal life insurance policy, it is possible; it is not possible with a term life insurance policy.

If certain aspects of both a term life insurance policy and a whole life insurance policy appeal to you, consider purchasing a universal life insurance policy. Don’t purchase any life insurance policy, including a universal life insurance policy, without first speaking with an agent of the life insurance company. Your universal life insurance agent will be able to construct the life insurance policy that meets both your wants and needs.