In the Chancellor’s Autumn Statement he extended UK Austerity until 2017/18 while providing no real strategy for fuelling economic growth, here’s to a prosperous 2013!
So in these austere times how do you make sure you get value for money when seeking financial advice?
To quote from Alice in Wonderland “If I had a world of my own, everything would be nonsense. Nothing would be what it is because everything would be what it isn’t. And contrary-wise; what it is it wouldn’t be, and what it wouldn’t be, it would”
Increasingly, organising ones finances at retirement can be a bit like this. Let me explain. When you’re younger and buying life insurance to protect your family, being in good health is likely to mean lower premiums than if you have a medical condition. At retirement the world turns upside down. Suddenly, if you are suffering from a medical condition that might affect your life expectancy you could be financially better off!
You see, when you are buying life insurance designed to pay out if you die, the insurance company is naturally worried that you don’t die too soon. In contrast, if you transfer your savings to an insurance company to pay for an income for life or “annuity”, the insurance company recognises that ill health means that your life expectancy could be shorter, so they’ll end up paying your income for a shorter period of time, as a result they may be able to offer you a higher income than someone who is fit and healthy. Maybe this is Alice’s world!
Here are three reasons why you should consider taking expert financial advice at this point in your life:
Secondly, it’s easy to make mistakes. This is a complex area and very few people have much experience of what to do.
And finally, the cost of taking advice is extremely good value for money when compared with the cost of taking the wrong option.
Let me now deal with life insurance first in terms of getting value for money. The cost of life insurance has steadily decreased as we all live longer and with increased competition. Now here’s the thing, as from 21st December last year, insurance companies can no longer take account of the risk difference between men and women when they calculate the cost of a policy. The trade association for insurance companies believe male premiums have fallen by around 10% as a result. So for all you men out there, now is a great time to speak to Lyndhurst Financial Management to get a competitive quote for your life insurance.
Going back to Alice’s world the reverse applies to pensions and now the cost to you ladies out there of taking out an annuity should also fall. Again, seeking expert financial advice is as important today as ever. For more information call our Barnet office on 0208 447 5592.
Lyndhurst Financial Management Limited.
Authorised and Regulated by the Financial Services Authority