Inside Insurance Protection Priorities

Inside Insurance Protection Priorities



Inside Insurance Protection Priorities
Protecting your home
Although you​ have no legal obligation to​ insure your home,​ your mortgage company will want to​ protect their investment with buildings insurance. However,​ it​ is​ also worth protecting your own investments,​ so even after you’ve paid off your mortgage,​ you​ should ensure you’re financially covered.
Home contents insurance and personal possessions insurance
According to​ Money Observer,​ the​ average home has £44,​000 of​ contents and replacing this without insurance would be almost impossible for most people. An average premium is​ about £150 a​ year and will provide cover up to​ £50,​000. the​ majority of​ contents insurance policies additionally provide public liability and personal legal expenses and although most people don’t claim on​ these,​ they could be very useful if​ needed.
Personal possessions insurance is​ worth taking out because often it​ covers your belongings outside the​ home,​ as​ well as​ inside the​ home,​ and is​ often incorporated into your contents insurance. Personal possessions insurance is​ also frequently referred to​ as​ all risks insurance and offers cover on​ possessions that are lost or​ stolen outside of​ the​ home.
Income protection
Income payment protection insurance is​ recommended by most insurers as​ the​ most appropriate way to​ safeguard your mortgage repayments and any other monthly bills. Kevin Carr,​ a​ senior technical advisor at​ LifeSearch believes that this is​ a​ better option than payment protection alone,​ including accident sickness unemployment ASU and mortgage payment protection insurance MPPI. in​ a​ recent statement,​ Carr revealed that the​ banks and mortgage lenders make huge profits from sales of​ payment protection. For instance,​ 17% of​ Lloyds TSB’s profits come from this.
Debts you​ don’t want them to​ haunt you
In addition to​ safeguarding your income to​ assist with loan repayments,​ you​ may also wish to​ consider personal finance products such as​ life assurance and critical illness insurance,​ which,​ under certain conditions provide a​ lumpsum that can be used to​ pay off the​ mortgage in​ difficult circumstances. the​ choice of​ life assurance or​ critical illness cover will depend on​ personal variables. For example,​ if​ you​ are single and have no dependents,​ then nobody would benefit from your life being heavily insured. However,​ should you​ be diagnosed with a​ serious illness,​ a​ lump sum might be helpful to​ ensure you​ maintain a​ reasonable quality of​ life. Personal accident plans can be helpful if​ you​ believe the​ specific conditions of​ the​ policy would be relevant to​ you. Examples include insurance providers such as​ Nationwide who will provide cover of​ around £50,​000 for the​ loss a​ limb,​ £10,​000 for a​ hip and £2,​500 for a​ toe,​ in​ relation to​ a​ premium of​ £4. 95 month.
Health insurance / private medical insurance
There are many difference financial products available for insuring your health and they vary in​ accordance with your stage as​ life. Examples include critical illness insurance,​ as​ discussed above,​ as​ well as​ longterm care insurance and medical insurance,​ which may also be referred to​ as​ private medical insurance or​ simply health insurance. Wikipedia argues that health insurance is​ one of​ the​ more controversial forms of​ insurance due to​ the​ tumultuous debate of​ insurance companies remaining solvent,​ against the​ needs of​ its customers to​ actively protect their health.
One of​ the​ main problems insurance companies face is​ the​ issue of​ adverse selection,​ a​ term used to​ describe the​ increased likelihood of​ sick people signing up for health insurance. Health insurance companies argue that those people seeking health insurance are often those with existing medical problems,​ those who are much more likely to​ have medical health insurance problems in​ the​ future and those who may engage in​ risky behaviour such as​ excessive ​alcohol​ consumption and smoking. Products such as​ health insurance tend to​ fuel fiery debates of​ the​ moral argument of​ health insurance costs and the​ question that if​ people pay for health insurance,​ are they more likely to​ lead a​ risky lifestyle in​ the​ knowledge that they are covered.
Travel insurance
Travel insurance isn’t complicated,​ but there are a​ few considerations you​ should bear in​ mind. Travel insurance typically covers issues such as​ cancellation,​ loss of​ baggage and medical expenses. However,​ Money Observer http//www. moneyobserver. com/ recommend better value by including baggage cover in​ your personal possessions insurance and not as​ part of​ your travel insurance policy. the​ consumer financial magazine also recommends extending your motor insurance to​ ensure your car is​ covered when driving abroad.
Moneynet http//www. moneynet. co. uk/ ,​ a​ personal finance consumer information site,​ makes the​ point of​ shopping around for your travel insurance and avoiding the​ high street travel agents. According to​ their insurance guide
Since January 2018,​ it​ is​ especially important to​ avoid the​ travel agents when buying travel cover; from that date,​ the​ insurance industry falls under the​ regulation of​ the​ Financial Services Authority,​ giving that body the​ ability to​ investigate and take action on​ behalf of​ consumers. Tour operators and travel agents,​ however,​ are not subject to​ this regulation,​ so if​ you​ have a​ complaint about travel insurance purchased from a​ travel agent,​ the​ FSA and the​ Financial Ombudsman Service will not be able to​ intervene on​ your behalf.
In a​ recent press release,​ moneynet also blasted high street travel agents for exorbitant insurance,​ stating that,​ major high street players like Thomas Cook,​ Thomson and Travelcare,​ which between them account for around 70 % of​ the​ travel insurance market,​ levy premiums that are typically twice as​ expensive as​ buying cover online.
Weddings insure your finances for better and for worse
Insurance may not be romantic,​ but it’s important and if​ your wedding doesn’t go according to​ plan,​ it​ can be very expensive. Wedding insurance will typically cover dress damage,​ loss of​ rings and retaking the​ photographs if​ anything goes wrong with the​ photographer or​ prints.
Insurance doesn’t always come with guarantees,​ but shopping around to​ make sure you​ have the​ most appropriate protection for yourself,​ your partner and your family will give you​ a​ certain amount of​ peace of​ mind.
Disclaimer
We only show you​ the​ way it​ is​ up to​ you​ to​ follow the​ path of​ enlightenment. All information,​ is​ intended for general information only and should not be construed as​ advice under the​ Financial Services Act 1986. you​ are strongly advised to​ take appropriate professional and legal advice before entering into any binding contracts.




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