Insurance World

The recently over 60’s are the post-war baby boomers. Their insurance needs are very different from that of a young family or someone just starting out in their first job.

A typical 60 something couple will have raised their family, finished paying off their mortgage and are into or nearing retirement. More and more of this age group of people spend part of their year abroad or maybe are planning to move to the sunshine on a permanent basis.

Maybe it would be a good idea to assess their insurance needs at this stage in their lives. Something that is almost certain to crop up is the worrying matter of inheritance tax. House prices have risen considerably over the past years and the family home that suited their lifestyle some years ago will probably be worth an amount approaching or over the inheritance tax limit. Even if they downsize their property, they may invest in something like a holiday home and the actual capital is still there.

Inheritance tax is charged on taxable estates with a value of more than Ј300,000 in the 2007/8 tax year. This amount rises annually – 2006/7 was Ј285,000 for instance.

To work out the value of their estate, they will need to take the value of their home, savings, investments, life insurance policies, any business interests and any other assets which they have accumulated. When the total of this has been reached, any liabilities will need to be deducted. Typically this will be any mortgage outstanding, loans and other debts. The remaining figure, less the amount exempt from Inheritance Tax is the one that Inheritance tax will be calculated from.

Inheritance tax would be charge on the death of the second partner. There is no inheritance tax between spouses.

To put it simply, if their estate – their assets minus their liabilities - is worth around Ј400,000, then using the 2007/8 allowance of Ј300,000 there would be Ј100,000 which would attract a tax of 40%. That’s Ј60,000 to their beneficiaries and Ј40,000 to the taxman.

You may think this is a fairly large estate, but do consider what your home could be worth at today’s values.

Now this couple may be quite happy to potentially give Ј40,000 of their hard earned money away, but we think probably not!

The couple would be advised to take some specialist advice at this stage, but a solution could well be to take out some whole-of-life insurance cover. An amount that would cover the estimated inheritance tax bill would relieve their beneficiaries of any worries when the inevitable time comes. The policy must be written “in trust” and the result will be that the payout will not be counted as part of the estate. By using this important proviso, there should be no delay in the payment of the policy to beneficiaries.

Most policies designed to help with inheritance tax dues are investment linked and offered on a reviewable basis. The plan will be reviewed at five or maybe ten yearly intervals. If the investment part of the plan has not performed as hoped, then the cost of the premium could rise and our couple need to be aware of this.

For an easy way to get some advice on this important subject, an on-line broker will be able to steer our couple towards the right product for them, at the right price.

Health insurance has become a necessity as our life is becoming more open to health related problems with increased pollution levels, increased rate of accidents and injuries. It gives you financial cover to bear our medical expenses with ease. One such affordable form of health insurance is a short term insurance.

Short term health insurance has become popular in the recent years as it provides you insurance cover with low monthly cost and high coverage limits. Employees working temporarily or part time are the common consumers of a short term health insurance. Also, people who are temporary out of work or in between jobs or are recent college graduates can easily apply for a short term health insurance. A short term health insurance keeps the consumers insured till they find a job that offers health insurance or they apply for an individual health plan. The term for which such insurance cover is available is 5, 10, 15 or 20 years. However you can talk to the provider if your requirement is more. These short term insurance plans at low premiums, don’t cover for the pre-existing conditions.

Medical care charges are touching the sky with the advancement of technology. How would a common man combat this increase? How can he arrange the money for medication if some uncertainty happens with him? Even if he goes for standard insurance plans to cover such expenses, will he be able to bear the cost of high premiums within his monthly income and budget? All these essential questions have just one answer and that is a short term insurance plan.

To ensure that you get a good deal matching your criteria, you can look for online insurance providers. These providers along with short term health insurance also serve you with other forms of insurance such as dental insurance vision insurance, insurance for your vehicles in form of car or motorcycle insurance etc. You can get free short term insurance quotes here which you can study and compare easily to get the best deal out of the rest. The enrollment process is quicker and hassle-free with reduced paper work as most of the process is online. It keeps you updated about all the transactions during the period of insurance cover.

This form of insurance also serves you with the coverage to pay off the a loan and additional insurance shield for expenses on your children education, medication or any other expenses if something happens to you during the insurance period. In simpler words, we can say that it financially supports your loved ones even after your death.
A short term Health insurance is the right key to open the doors of happiness by giving you freedom health related financial issues.