Life cover, it’s about more than insurance

April 4, 2013

When it comes to protecting ourselves and our loved ones from the worst happening, whether it’s a critical illness or untimely death, we all know some sort of life cover or critical illness cover is required to ease the financial strain of these events.

Time and again couples and families are left feeling the financial and emotional pressure because the cover was never put in place. It was never the right time to look at it, they were always too busy, they didn’t think they could afford it, they didn’t see the need to buy insurance as it never gives anything back.

However, there is a shift in the industry now towards providing more than pure insurance as the customer wants to know what’s in it for them, what are the additional benefits and why should they have the cover in place.

Apart from providing peace of mind that your loved ones will be taken care off on your demise a handful of providers are now looking to enhance the benefits available to you while you live a healthy life and in fact they work hard to ensure you stay fit and healthy while saving money.

Pru Protect is a front runner with their Vitality and Vitality Plus schemes which allow their policy holders to follow a Vitality coverhealthier living programme which not only could add years to your life but reduce the need to claim for a critical illness. Their Vitality programme doesn’t just help clients stay healthy but rewards them for their efforts too by means of reducing the premium paid for the cover as they accrue Vitality points.

They also offer discounts with their health partners for half price health screening, discounts on Champneys spa breaks and even member deals with Cineworld, Vue, Legoland and Thorpe Park to name a few.

Pru Protect recognise that just selling insurance isn’t going to cut it in today’s climate and that everyone wants to know their money is being well spent with immediate benefits in return.

Bright Grey are also in on the act, offering a free Helping Hand service with their cover which is aimed at helping policy owners and their families cope with the trauma of loss or serious illness.helping hand pack

They offer a support service at a time when it is most needed whether its assigning a RED ARC nurse to help you come to terms with your illness, guiding you through the questions you need to ask a consultant or offering bereavement counselling for the family left behind.

They can help with getting you back on your feet with alternative therapies if conventional medicine isn’t the answer and provide rehabilitative support to get you back to work.

Just this morning I had a call from our contact at Aviva to let us know they have now launched their own RED ARC nurse service with their life and critical illness cover and in addition to this they also offer a free 2nd opinion on your medical diagnosis.

red arc assuredThere has never been a better time to review your protection or get something in place if you have been putting it off. It’s about more than just insurance these days and there are a range of additional enhancements and benefits at your finger tips so why not get in touch today to find out more.

If you’re still thinking it’s going to be too expensive then watch this space as I will be blogging again shortly to demonstrate the real cost of cover and how there is something for every budget.

Dr Claire Armstrong

Share:

The Greatest

March 27, 2013

The use of positive affirmations is often used by personal and business coaches as a way of creating the right mindset in order to help you achieve goals and targets that can appear beyond you.

Tony Robbins has long used the fire walk as away of demonstrating how your mind can overcome obstacles (in this case 1000 degree burning coals) to achieve great physical feats.Muhammad Ali

Famously Muhammed Ali declared “I am the greatest” and not many argued that he wasn’t.

My personal favourite was attributed to Henry Ford who said “whether you think you can or think you can’t, you are right”

All very touchy feely and New Age, Roland, but what’s the point?

Following on from my “No Hidden Agenda” blog, there were a number of positive comments. Many agreed this when dealing with large financial institutions and how that it is incredibly difficult for these types of business to win back customer trust.

There might be real determined and skilled management at the heart of these businesses but if the people really don’t believe, then you’re fighting a losing battle.

My local branch of Lloyds TSB were throwing out so may negative and unhappy vibes recently at the teller level, I nearly got the rope out…

Naturally it leads to a poor customer experience and unsatisfactory feeling all round.

I truly pity the poor front-line staff at any Cypriot bank when it opens its doors again on Thursday.

I’m very lucky that the people that work with me have a serious desire to provide the best service they can to clients and go the extra mile.

We like to believe that this approach is both nature and nurture but you have to continue to want to do better and create the right business attitude and environment to do this.

Providing a better service, more enjoyable customer experience is what we are all about.

I personally don’t think banks in the UK will ever regain their status in the eyes of the public and the new paradigm is businesses that do care about their clients and the service they offer.

I also think as a nation we need to vote with our feet more than ever and if you have any doubts about how you will looked after and treated by any business, then look for somebody else.

Our Second Opinion Service is designed to provide prospective clients with a view on the current service they receive for their adviser and suggest one of three possible outcomes;

  • continue with your existing arrangements as it works.
  • here is the name of an adviser that might be better suited to your requirements.
  • or you might want to considering working with us.

Either way, you’ve nothing to lose and we might just be your greatest decision.

Roland Oliver

Share:

No Hidden Agenda

March 18, 2013

As previously mentioned by Claire in her blog, we recently ran a seminar on our approach to customer-led Wealth Management.

Of the number of noticeable comments made was that the attendees felt that the was “no hidden agenda” in our presentation and that people could see that we clearly had an interest in providing a service that had them at the centre of it.

As big business and politicians continue to try and win back our trust, the phrase “no hidden agenda” keeps coming back to me.

We are all incredibly sensitive to this feeling.  Dealing with anybody providing a service of any type today must make sure that our needs are being met in a way that suits us first and not the provider.

Whether its a local restaurant, or high street bank,hiding you must be clear about what you are providing to your customer as nothing will sour the relationship quicker than the discovery of a hidden agenda.

The gaining of a client’s trust is a privilege that is repaid in long term customer loyalty. In the post RDR world when fees are going to be scrutinised, ensuring you don’t lose it through any hidden agenda is crucial.

In a day when the the Cypriots are perhaps finding out about another hidden agenda, its clear to me that we need to continue to be clear, open and honest about what we do for our clients.

In case you were counting, I mentioned the phrase “no hidden agenda” 5 (6, if you include this one) in this short blog.

Nothing to hide here.

Roland Oliver – March 2013

Share:

Inheritance Tax Nil Rate Band to stay at £325,000 after all

February 15, 2013

After the last budget we had been expecting the inheritance tax nil rate band to increase from £325,000 to £329,000 in 2015. This has now been set back to 2018, by which time it will have been frozen for 10 years. This means the potential saving of £1,600 per estate (40% of £4,000) in each of those years is lost.

The extra tax revenue for the Government will go towards paying for the imminent capping of long term care costs at £75,000.

These two decisions together form an interesting blend from an advice point of view.

The introduction of the cap is designed to encourage individuals to begin saving towards the possibility of needing care in later life. Long term care costs are currently both unpredictable and uncapped, and as a result there’s been little focus on saving for it. When a target is both unknown and unlimited it is hard to turn it into a realistic goal.

The cap will allow planning with greater certainty and with a known funding target. In addition, if care isn’t needed, individuals would still have access to their savings or they could be passed on through their estate.

So, from a holistic advice point of view, it makes sense to mark this down as something to work towards.

In terms of the change in the planned IHT band, careful planning can more than offset the £1,600. The use of allowances and exemptions over time, for example regular income gifts or one off larger gifts can help wealthier clients stay on track to minimise or remove inheritance tax as a problem. Of course this is better started sooner rather than later, as these allowances do not accrue year by year.

If you have any questions about planning for later life, be it covering the costs of long term care or passing your estate on to the next generation, please get in touch and we will be happy to advise.

Share:

Saving for your Children’s future – what to do with the Christmas money?

December 7, 2012

Well it’s that time of year again when everything is all about the card writing, gift giving, turkey cooking and arguing over the TV scheduling post Christmas lunch!

I love Christmas and am particularly enjoying seeing it again through a child’s eyes now my little one is getting older and can appreciate it more.

We’ve not quite reached the stage where she is writing a list for Santa but we have our own list of gifts we know she will enjoy and appreciate on Christmas morning.  Of course aside from the presents this time of year many children are in the fortunate position of being gifted money from parents, family and friends and this inevitably leads to making a decision on the best use of these funds.

Will it go to into a child’s deposit account for a purchase in the coming New Year, or be saved for the longer term through an existing Child Trust Fund or more recently introduced Junior ISA?

Savings accounts

Most banks and building societies offer special accounts aimed at children. Many will use marketing gimmicks to attract them but the key concern should be getting the best possible savings rate, so shop around, compare offers online and in branch and then you can make an informed decision.

You should be aware that interest is payable at parents’ income tax rate on any interest earned above £100 in these accounts.

National Savings

National Savings children’s bonus bonds are only available to those aged under 16 although they must be bought on their behalf by adults. They pay a fixed rate of interest and can be held until the child reaches 21. To get the best return, the Bonds must be held for five years to qualify for a bonus.

They are tax-free and so can be particularly good value for any young people who are taxpayers. They are sold in units of £25 and a child can have up to £3,000-worth of the current issue of bonds. Get the children’s bonus bond booklet NSA769 from post offices for further information.

Child Trust Funds

Child Trust Funds were stopped at the beginning of 2011 but when running the scheme meant all children born after 31 August 2002 received a voucher worth between £50 and £500 (depending on when they were born and how well-off their parents were) from the Government to open a child trust fund account. Although the vouchers are no longer issued there many under 9s who will have a Child Trust Fund in their name which may have been neglected since it was initially opened.

This is a fantastic method of saving for the future so if you started one some time back but it’s not been topped up for a while it could be a good idea to get some regular savings going in the New Year or make a lump sum commitment with some of the Christmas money coming your kids way this month.

The annual limit which can be invested into an existing Child Trust Fund is now £3,600 and given the tax advantages it makes sense to make use of this vehicle if you have one opened but haven’t looked at it for a while.

Junior ISA’s

These were introduced on 1st November 2011 and started in essence to replace the Child Trust Fund Scheme.

These ISA’s are available to eligible children under the age of 16 who did not qualify for the Child Trust Fund. Parents, family and friends can contribute up to £3,600 in the tax year (based on current limits) and this can be done on a regular or one off basis.  The money in the account can only be taken by the child once they reach 18.

There are many ISA’s out there and plenty of online independent comparison sites to help with the decision and we would of course be more than happy to provide some guidance if this is something you are thinking of.

Winston Churchill said “Saving is a very fine thing. Especially when your parents have done it for you”, so if you haven’t already started to put something aside for future years or you’re thinking about encouraging your children to take an interest in their own regular savings and want more advice please do not hesitate to get in touch.

We’ll be picking up on some useful ideas to teach children about money in our December Newsletter so watch out for it coming in if you are regular recipient. If you’re not already on the mailing list but want to hear more about this and other topics through 2013 then please follow the Newsletter link at the top of the page and sign up.

If I’m not blogging again before our Christmas break I’d like to take the opportunity to wish all our readers a very Merry Christmas and a prosperous 2013.

Claire Armstrong

 

Share:

Added Value Services

December 4, 2012

Not long now until we are in RDR World proper.

We have spent more than 2 years working on, defining, articulating and then delivering our service proposition.

Or in other words, we can define to all our clients what will be the minimum they can expect from us, how will we provide this service and what the process involves.

If this is proving earth-shattering stuff for your current adviser and they are still some way off having a clear service proposition, then I suggest that they are not going to be ready to provide you with basic guidelines as to what you service might be offered in the new regulatory regime starting in January 2013.

I get the impression that a number of businesses are taking their current model, giving it a good old buffing and hoping that will be enough for existing and new clients alike going forward.

More worryingly, I hear it’s the same service with a different name but at much increased cost.

You need to ask the question, if this is all that you are being offered from your current adviser at this highly crucial time, do you see other added value services being developed elsewhere that you might be interested in?

It’s not going to be good enough to offer the current approach to financial planning without considering what else you can do to retain and attract clients to your brand in the very near future.

Virgin is a great example of a brand that covers a very wide range of services but with a core set of values that customers recognise and value whether it’s buying a can of cola, airfare or a trip into the edge of space.

Financial planners will need to consider what other useful services they can give their customers access to.

For example, we intend to have a link-up with a foreign exchange provider that will allow our clients access to better wholesale currency transactions, discounts and better rates on currency cards.

Whilst there may be a small financial advantage for the business, it’s more about developing complimentary services that are useful for our clients and help increase customer loyalty.

Focussing on your brand not your business, and what you can do to delight your clients has to be the new mode of thinking.

Roland Oliver

December 2012

Share:

Modelling Your Estate and Inheritance Tax

November 30, 2012

We are currently carrying out a large exercise for a client to ensure that the inheritance tax on her estate is mitigated as much as possible.

As well as taxation and trust work, the use of our cash flow modelling system has become an important part of this.

We are able to enter all of the client’s assets into the system and simulate an immediate estate scenario (a nice way of putting it!). This provides balance sheet style view of everything that needs to be taken into account, and performs the appropriate calculations. Any beneficiaries of the estate can also be entered into the planning, as well as potentially exempt transfers.

Please click on the image below for a basic example of this.

In this case, the estate will be distributed to two children, John and Jen. The system automatically collects anything that would be part of the estate and performs the calculations. This can be as simple or as complicated as necessary to correctly simulate your planning. The detail can drive down into the way certain policies are set up. For example, the Whole of Life insurance policy that the example client above holds is written in trust, and therefore the payment is outside of the estate.

The example above shows one solution in inheritance tax planning, whereby the £100,000 Whole of Life policy in trust pays out enough to cover the inheritance tax charge of £94,140.

For a detailed look at your inheritance tax position and to see what we can do for you please get in touch.

MS

Share:

Enhanced Annuities

November 7, 2012

We recently lost a client who, a few months ago, we had helped set up pension income for.

It was very important to our client that should anything happen to him, his wife would be looked after and continue to receive an income afterwards.

Setting their annuity up with the correct guarantee period and spouses benefit has allowed his widow to not worry about her income in this difficult period.

I mention this as getting the most (and most appropriate) income from your pension fund is crucial but often the various retirement options are not understood.

If we concentrate on annuities which are the “simplest” retirement option, there are many variations that need to be considered.

Simply put, an annuity is a type of insurance that guarantees you a regular secure income from your pension fund for the rest of your life no matter how long you live.

Often clients will opt to take the annuity offered with the company that they have saved with over the years.

This could be just fine but there are a wide variety of rates available and this could result in a much lower income than might be on offer by shopping around.

If you are in poor health when you come to take your pension fund, you could benefit from a higher income through an Enhanced Annuity.

These types of annuities take account of any health or lifestyle issues you may have which may affect your life expectancy.

If you qualify, this could lead to a higher starting income that you could expect from a normal annuity arrangement.

It is estimated that 40% of people retiring could qualify for an enhanced annuity giving them up to 30% more income*

Make sure you check all your options before you take you pension fund as the wrong option can be very costly. For more information please see our Guide to Retirement Options.

*www.partnership.co.uk/retirement

Share: