Most people have two or three main protection needs that can be covered by Life Insurance (often known as Life Assurance):
- Paying off large debts such as your mortgage in the event of your death.
- Family protection, where you leave behind money for your family to live on after you’ve died.
- Funeral expenses
Different types of insurance policies are good for different protection needs:
The most basic type of life insurance is called term insurance, where you choose the amount you want to be insured for and the period for which you want cover. If you die within the chosen period, the policy pays out. If you don’t die during the term, the policy doesn’t pay out and the premiums you have paid are not returned to you.
There are three main types of term insurances to consider: level term, decreasing term and family income benefit. Sometimes a combination is the best answer.
- Level Term Life Insurance
A level term policy pays out a lump sum if you die within the specified term. The amount you’re covered for remains level throughout the term – hence the name. The monthly or annual premiums you pay usually stay the same, as well.
Level term policies can be a good option for family protection, where you want to leave a lump sum that your family can invest to live on after you’ve gone. It can also be a good option if you need a specified amount of cover for a certain length of time, e.g. to cover an interest-only mortgage.
You might also consider including an automatic annual increase of the sum assured to counteract the effects of inflation or increasing expenses. There are even budget versions where the monthly cost is lower during the first few years.
- Decreasing Term Life Insurance
With a decreasing term policy, the amount you’re covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgage.
Premiums are usually significantly cheaper than for level-term cover as the amount insured reduces as time goes on.
- Family Income Benefit Life Insurance
Family income benefit life insurance is a type of decreasing term policy. Instead of a lump sum, though, it pays out a regular income until the policy’s expiry date if you die.
The upside of family income benefit is that it is easier to work out how much you need. For example, if you take home £2,000 a month, you can arrange for the same amount to be paid out to your family if you die.
As the name suggests, whole-of-life policies are ongoing policies that pay out when you die, whenever that is. Because it’s guaranteed that you’ll die at some point (and therefore that the policy will have to pay out), these policies are more expensive than term assurance policies, which only pay out if you die within a certain timeframe. These are often used when cover is required for funeral expenses.
The good news is that Life Cover in general is now more affordable, and most importantly can provide you with peace of mind, knowing that your family will be financially protected in the event of your passing away.
For and on behalf of Cherry Godfrey Insurance Services (Jersey) Ltd
Regulated by The Jersey Financial Services Commission in the carrying on of investment and general insurance mediation business
The Summer Holidays are fast approaching …
The effectiveness of water – resistant product SPF 30 could drop to SPF 15 after a swim. Plus towel drying is also likely to rub off sunscreen.
This is an indication of how long sunscreen protects against ultraviolet radiation that’s linked to skin cancer and is the main cause of sunburn (UVB)
The SPF number doesn’t relate to the amount of protection a product provides it relates to time from when YOU step into the sunshine, depending on your own skin type – if an SPF30 product is applied correctly it will protect you for 30 times longer than if you wore no sunscreen. The clock doesn’t get reset each time you reapply the time is set for the day and if you don’t apply enough it will not provide its full SPF.
Cancer Research UK says it’s all about ‘How well you put it on’ for example
Most people under-apply sunscreens, using ¼ to ½ the amount required. Using half the required amount of sunscreen only provides the square root of the SPF. So, a half application of an SPF 30 sunscreen only provides an effective SPF of 5.5!
Seeing your Doctor?
Here are a few tips…to make the most of your time with your Doctor
Be Prepared…lists will always help and read them out at the start of your appointment. This helps the doctor to see the whole picture and to avoid leaving the embarrassing ailment until you are about to leave.
Try to pre-empt your doctor’s routine questions, prepare answers for: ‘how long has it been going on? Have you had it before and has anyone in the family had the same thing? And be specific and upfront about your history.
A symptom diary can help; these are helpful for tracking times when symptoms hit.
Your doctor may ask you to return to discuss one of your problems – it maybe that he or she feels that it deserves more time and a more detailed evaluation. A repeat visit will almost certainly incur a further charge.
Protecting our children from second-hand smoke
The aim of the consultation put simply is to gauge the views of the public on a variety of approaches and options for extending smokefree places and spaces.
Whether you are for or against the idea of extending smokefree areas in jersey, a smoker or non-smoker, we want to hear your views. To find out more about the consultation, and to fill out our brief survey, you can visit:
The Citizens Advice Bureau Response to the States of Jersey Proposed Long-Term Care Scheme
Jersey faces a substantial increase in both the number and proportion of older residents over the next 30 years. Our ageing population means thatmore people will need long-term care and the cost for this care is set to double by 2044.
The States’ proposed Long-Term Care Scheme will provide financial support to Jersey residents who are likely to need long-term care for the rest of their life, either in their own home or in a care home. The Scheme aims to remove much of the financial worry that people have about the cost of long-term care. The new arrangements intend to put an end to the uncertainty and concern that homeowners and their families experience when facing unknown and potentially significant costs.
We were delighted to host a great lunchtime seminar all about Wills. The talk had even the hardiest of listener contemplating how soon they would get cracking with making their will. It became quickly evident in our discussions that there would be many complications, family disputes and emotional roller-coaster rides following your passing for your family should you not have taken time to make a Will.
The talk went into details about a variety of areas including:
When do you expect to retire?
The further in advance you start planning for it, the more you improve your chances of achieving the retirement you want. However, even if your retirement is close and you’ve done little to prepare, any action you can take now is generally better than none.
Have you decided on your retirement age?
Don’t get burnt by suncream deals
Even though medical experts and scientists advise that we should be slathering the stuff on all year long, it is generally during the summer when many of us remember we should be using suncream. Increased awareness about the danger of skin cancer has made suncream a £100 million industry per year. But it has also made it easy to convince consumers to spend much more than necessary to protect themselves in the sun.
For suncream to be effective, experts say, it needs to be applied, properly and liberally, using 40ml at a time, and then reapplied every two hours or after being in the water. In warm weather, that can mean a lot of suncream, especially for families — but it doesn’t have to burn a hole through your pocket.
Twelve well known suncream brands were tested by Which?, all of which stated they protected against UVA and UVB rays – both of which have been linked to skin cancer. UVA rays are linked to premature aging of the skin, and UVB rays are the main cause of sun burn. Shockingly, three products from big brands Hawaiian Tropic, Malibu and Piz Buin failed their protection test.
Are you eligible for the 65+ Health Plan?
If you are 65 or over, you may be eligible for the Jersey 65+ Health Plan which helps with looking after teeth, feet and eyes. It is funded by the Social Security Department and is administered by Westfield Health.
You can join the Plan if you are 65 or over; if you do not pay Income Tax because your income is below the relevant tax limits; if you are resident and have lived in Jersey at some point for a period of five years; and if you have assets below a set limit. Your home is not included in any consideration of assets. There is no membership fee.
Pensions Update and Top Tips
In the recent UK Budget, George Osborne proposed a significant shake-up of UK pension arrangements, which if introduced, will allow individuals to extract all their pension savings in a lump sum at the point of retirement, subject to their marginal rate of income tax in that year.
Those who require the security of a guaranteed income will still be able to achieve this by purchasing an annuity. If an individual does not want to purchase an annuity, or cash-in their entire pension fund, they can remain invested and access their pension fund over time.Read More