Maan

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taking the devil out of the detail

Wednesday, 29th June 2010

“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale” – Zig Ziglar

May we bust a myth? “The insurance company never pays out.” In 2008 the insurance industry collected a whopping £8.8 billion in property related premiums alone. KERRR-CHINGGGGGG! However, during the same year the industry paid out £4.8 billion in related claims*. That’s a lot of flat screen televisions broken by errant wii controllers, taps left running, trees falling into neighbours’ gardens, or failing foundations.

Secondly;

The idea behind insurance is simple. If you value something greatly, you are able to replace it if you lose it or it is damaged by paying a fraction of its value each year in premiums. Fortunately, we seem to get it when it comes to home insurance, with nearly eight in ten households having some form of insurance (although there are probably many us under-insured for our belongings). However, there are other types of insurance that can provide valuable benefit for you or your family. An obvious example is accident, sickness and unemployment cover. According to Government statistics, just under 8% of the working population is currently out of work and claiming job seekers’ allowance†. Percentages like this can be misleading, like the word “average”: you could have your head in an oven and your feet in a freezer, but your overall body temperate might still be “average”. There are many industries affected, and some, like the financial services sector, have been hit harder than most.

Finally,

Redundancy is a very real threat that faces all areas of the working population, from City bankers to government employees, from manufacturing workers to builders. The additional security offered through an accident, sickness or unemployment policy means that should you have the misfortune to be one of those affected by our current economic problems, the financial pressures are reduced, meaning less stress for you and your family while you seek new employment.

There are only around 10% of households with their own Private Medical Insurance (PMI)*. This insurance gives peace of mind that you, your spouse or your children can have treatment generally far faster than through the NHS, under the care of a consultant of your choice and often in a hospital selected by you. Many employees, especially more senior level staff, benefit from medical insurance provided by their employer. However, this cover ends when you move jobs, putting new full cover at risk if you have made a claim during your time at your previous job. By “owning” your own policy that covers you and your family, you are guaranteeing cover if you change

Advice

employer, set up on your own, or even lose your job, provided you maintain the premiums. Some consider PMI to be a luxury item, but it can be arranged to be affordable and built around you and your family’s needs. We certainly don’t wish anyone ill, but many of us are ill at some point in our lives and we all wish that it can be treated speedily, effectively and reassuringly.

* Source: Association of British Insurers annual report 2009

To find out more information please contact us and arrange to meet with one of our advisors who will be able to assist you with a wide range of money related matters.