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Types of Mortgages Available in the UK

Types of Mortgages Available in the UK

What Types of Mortgages are Available in the UK

Buying a house is a great milestone in anyone’s life, but there’s a lot that needs to be done before you can actually call yourself the owner of the house. Acquiring a mortgage is one of those things. In the UK, there are many different kinds of mortgages you can choose from, and we’d like to share all of them with you. You should be able to decide which mortgage best suits your situation.

Repayment Mortgage

This is the most common sort of mortgage. The principle of this mortgage option is quite simple: you will receive a loan from your lender of choice, and pay it back over a period of time. Usually, this would be anywhere between 20-30 years, but some lenders allow you to pay it back over a period of 40 years.

You pay a monthly amount which will repay part of the capital you have borrowed, including the interest attached to the loan. After the designated period of time has elapsed, your loan should be paid in full. The house is now paid off and is officially yours. During a repayment mortgage, you can choose to remortgage your home if you find another lender who fits your needs better.

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Interest-only Mortgage

Choosing an interest-only mortgage means you’ll be required to pay the full cost of your property at the end of the interest-only mortgage. Each month, you’ll only be required to pay the interest. When the term ends, you’ll need to pay 100% of the money you owe or you’ll be forced to sell your property.

What this means, is that you’ll be saving a lot of money monthly as the interest is usually very low, but you need to be sure that you have the money you need when the term ends. A lot of buyers choosing this option will use high interest fixed rate savings accounts to make sure they have the money needed to cover the bill when the time comes.

Fixed Rate Mortgage

Opting for a fixed rate mortgage can be a safety net or a choking hazard. As the name suggests, the rate is fixed each month meaning you won’t have to deal with variable rates. The plus side to this, is that you know where you stand for the duration of the fixed period, but the negative side to this is that you won’t be able to benefit from mortgage rates dropping as your price will always be the same.

Usually, this kind of mortgage can run anywhere between 2 and 10 years. Once you’ve fulfilled your term, you’ll revert back to the lender’s standard variable rate. This is when you can remortgage your home or apply for another fixed rate term.

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Variable Rate Mortgage

A variable rate mortgage is a basic mortgage which can fluctuate. The interest isn’t fixed, meaning that you can either pay more in a year, less, or the same amount. Other mortgage options are often based around this variable rate. Variable mortgage rates are often based on the base rate of the Bank of England, but the lender can apply his or her own criteria too.

Trackers

If you want a mortgage which is centred around the Bank of England’s base rate, tracker mortgages are the way to go. The interest rate can go up or down depending on what the Bank of England does. Keep in mind though, that most lenders won’t allow a loan to drop below a certain rate, regardless of what the Bank of England does.

Capped Rate Mortgage

If you’re worried about paying too much interest at a high rate on your mortgage, then capped rates might be the way to go. This way, you won’t be able to rise above a stipulated amount, but you can still benefit if they go down. Basically, you’ll be protected against any unusually high interest rates.

First-time Buyer Mortgage

Some lenders choose to give first-time buyers a special deal. Most of the time, these deals will be tied in with government schemes like Help to Buy. That means these deals won’t always be available, and not every lender has to offer these deals.

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Discount Rate Mortgage

A discount rate sounds great, doesn’t it? Not always. This kind of mortgage is great when the variable rate is stable, but when the rates are up and down like a rollercoaster, you should think about choosing a different kind of mortgage. Usually, a discount rate mortgage is restricted to 2-5 years.

Offset Mortgage

Offset mortgages are the best choice for people who have a lot of savings to put into the house. With an offset mortgage, you’ll only be paying interest on the difference between your mortgage and your savings. This is calculated per month. You can still access your savings, but your offset amount will decrease and your mortgage term increase.

People who fall in the higher tax band greatly benefit from this loan, as you won’t be paying any tax over savings that are being used to offset your mortgage.

Flexible Mortgage

If you don’t have a steady income, for reasons like being self-employed or likewise, you can take out a flexible mortgage. This allows you to pay more or less each month, and can even allow you to miss payments altogether if financial circumstances become a little tricky. Unfortunately, flexible mortgages often carry a higher rate of interest.

Buy-to-let Mortgage

If you’re looking to rent your house to others, you can consider a buy-to-let mortgage. The calculations of a buy-to-let mortgage all depend on how much rent the lender thinks the property can achieve, so each situation and application is treated differently.

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Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

FOR THE BEST UK BROKER SERVICES FOR MORTGAGES & LIFE INSURANCE

You can see that choosing the right mortgage and getting approved can be a bit of an obstacle course. Searching for the best mortgage deal to suit your needs can be complex and time consuming. When you choose Prime, you’re choosing a company that works hard on your behalf to get you great options – that goes for mortgages and for life insurance. At Prime we have an exceptional FCA approved team of life insurance & mortgage specialists working for you. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting.

Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan, Greater Manchester and across UK, in person, on Trust Pilot and Google online.

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Perhaps you have questions you would like answers to? Like..Which mortgage is best for me? Which mortgage is best for a first time buyer? Can you find me an affordable mortgage? We have been turned down for a mortgage recently, can you still help us? I am looking to remortgage can you help? Our dedicated team of experts can answer any and all of your questions.

Getting a mortage agreed is a big step forward in life, and so is having a Life Insurance policy. You can ensure your family is taken care if there is sudden terminal illness or your life should end. You can find out more about us and what we do here and if you need help with anything else, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form to get in touch. Our friendly dedicated team is available by telephone 01942 665 436 during office hours.

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What Does a Mortgage Broker Do

What Does a Mortgage Broker Do

What Does a Mortgage Broker Do

Buying a house involves organising a lot of things and making sure your documents are in order. You’ll also want to find out which mortgage lender has the most beneficial mortgages for your situation. This can cost you a lot of time, and you may wonder if you can get the best possible deal, but a mortgage broker can you help from start to finish when you’re thinking of buying a house, which will save you a lot of time and stress.

The Role of a Mortgage Broker

A mortgage broker can be a person or a company and will help you arrange a mortgage between you and the mortgage lender. The mortgage broker works directly with you to help you decide what kind of mortgage best suits your situation and will then work on finding the best deal matching your criteria. It doesn’t matter whether you’re buying a house for the first time, or whether you’re looking to re-mortgage your current property.

what does a mortgage broker do

A Mortgage Broker or a Mortgage Agent

You might be wondering if a mortgage broker is different from a mortgage agent, and which route to follow.

The Mortgage Broker

A mortgage broker specialises in mortgages and will act on your behalf. A broker for mortgages is an intermediary between the mortgage company / lender and the client. A mortgage broker will ask questions based around the property you are looking to buy or remortgage, mortgage type, your homeowner status and your financial situation. The mortgage broker then acts on your behalf to find the best possible mortgage deals to suit your circumstances.

Mortgage Broker Benefits

You can enjoy a hands-off approach and have the mortgage broker source the market so you will potentially find a suitable mortgage in a short period of time. This can also mean less stress for you, and there is a good chance that a mortgage broker will find you a much better deal than the one you find for yourself. A mortgage broker is regulated by the FCA (Financial Conduct Authority) and will provide the best advice and solution they can.

Other Benefits

  • Personalised one to one service from start to completion with no obligations placed on the client
  • All the paperwork is handled by the broker on your behalf
  • Always acting in your best interests
  • A mortgage broker will do all the searching for you whilst you carry on with your normal day to day life
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The Role of a Mortgage  Lender / Agent

Mortgage lenders have a variety of mortgages which appeal to people who want mortgages for different reasons. A lender will tell you only about their own mortgage products, and many mortgage products will be found only through a mortgage broker.

Banks have their own mortgage lending departments to sell mortgages to people who are looking to buy a house. Each bank will have a set criteria (includes credit score and income checks) for each applicant and application and you will have to show that you will be able to afford the repayments.

The mortgage lender will also

  • Determine the mortgage terms
  • Decides on the interest rate
  • Decides on the amount of the monthly repayment

Why Use a Mortgage Broker?

Finding and applying for a mortgage can often be a big hassle. If you don’t know what you’re doing, or you’re a first time buyer, using a mortgage broker can be a huge relief. The mortgage broker can help you find and apply for the mortgage while making sure you get the best deal available to suit your needs.

Some of the tasks a mortgage broker will do for you:

  • help you to assess your financial situation
  • suggest the most suitable mortgage for your situation
  • searching all the market to find the best deals that match what you are looking for
find the best deal on a mortgage, what does a mortgage broker do

More Benefits of Going to a Mortgage Broker

Benefits of using a mortgage broker can extend beyond the obvious. For instance, a mortgage broker can ensure convenience, where you don’t have to have any knowledge to navigate the finance and mortgage markets – you can leave it all to a mortgage broker. Choosing the wrong mortgage can impact you and your finances for years, so getting it right is essential.

  • Also, there’s the element of time which goes into all the paperwork needed and speaking to the lenders. Having a mortgage broker, means you’ll be able to focus more on things like decor and furniture for your house.
  • An established mortgage broker will more likely have strong direct relationships with lenders in the finance and mortgage markets than you could ever hope to achieve yourself. This means that a mortgage broker will be able to contact a wide range of lenders which will increase your chances of finding the best deal to fit your criteria.
  • Expertise. A mortgage broker will have already studied the markets and know all there is to know about mortgages. When interest rates fluctuate regularly, a mortgage broker knows exactly what signs to look for and how these signs relate to getting you the best mortgage deals. They’ll also be able to explain this to you in such a way that you will understand why a particular mortgage deal is good right now.

Hidden Advantages of Using a Mortgage Broker

A hidden advantage of using a mortgage broker is that you may actually end up saving hundreds to thousands of pounds. In some cases, connections that mortgage brokers have with lenders are so valuable that the mortgage broker is able on occasion to get the lender to lower their fees.

 

benefits of using a mortgage broker, what does a mortgage broker do

 

Mortgage Broker Fees and Quotes

For transparency, there are usually costs associated with using a mortgage broker but getting quotes is free of charge

  1. Some brokers may ask for a fee up front
  2. Some brokers are paid a fee directly by the lender when a mortgage has been agreed

A mortgage broker is highly qualified and offers a professional service. There are some things you need to keep in mind.

A good ethical broker, will steer you towards the best deal for you and not towards a more expensive loan that will net the broker a bigger fee. So asking a broker to act on your behalf really can prove to be a far better option.

Get in Touch with a Mortgage Broker

A mortgage quote from a mortgage broker is the first step. The end decision which includes terms and specifics, however, will always be with the lender and a mortgage broker can follow through with lender on your behalf.

Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

PRIME FOR WIGAN & UK – A LEADING LIFE INSURANCE AND MORTGAGE BROKER

Setting up a mortgage can be a very time consuming and frustrating experience. At Prime you always have an exceptional FCA approved team of mortgage specialists and life insurance specialists there for you. We provide excellent one to one services tailor made to your own individual needs and we make your time with us completely hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and across the UK, in person, on Trust Pilot and Google online.

Perhaps you have questions you would like answers to? Like..will you help me with a remortgage? Am I eligible to get a mortgage and do I meet all requirements? I am a first time buyer can you help me? How great does my credit rating have to be to be approved for a mortgage?  Our dedicated team of experts can answer any questions you might have.

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It can be hard to decide which agent or broker you want to find the best deal for you, because there are so many in the UK. Luckily, we are a leading UK certified mortgage broker and we know our way around the mortgage market like the back of our hand. You can rest assured that Prime Financial Solutions and Mortgages Ltd knows where the best deals are and how to get them. What are you waiting for? Contact us today and we will start your mortgage search.

To find out more about us you can you can go here and if you would also like to find out about our life insurance services you can Click here to get a free Quote or you can use our quick contact form and we will be in touch. Our experts are available during office hours telephone 01942 665 436.

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What Does a Life Insurance Broker Do

What Does a Life Insurance Broker Do

What Does a Life Insurance Broker Do

We don’t really want to think about it too often, but there will come a very sad and traumatic time in the future when we stop living and we die. When this happens, people we know, those we shared our lives with are left behind: family, friends, and colleagues, pets.

Life Insurance and providing security for loved ones can ease the financial burdens on those who live on. It is possible to forget about renewing a life insurance policy as well, so it is important to make sure life insurance is in place, just in-case something terminal should happen.

what does a life insurance broker do

It can be very difficult to decide which life insurance is best for your situation though, and naturally you will want to do it right and so a life insurance broker can help you with this.

What Can a Life Insurance Broker Do?

Finding the right life insurance can be a hassle, especially if you’re not certain about what exactly it is you need. A life insurance broker can help you with advice, a free quote and can guide you from start to finish. Generally, a life insurance broker will ask you questions about you and your circumstances and will then carry out in depth searches to find the best life insurance policies. Best options will be presented to you, which can then be discussed.

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Differences – Life Insurance Broker and Life Insurance Agent

The main difference between a broker and an agent, is the party that they represent. A life insurance broker has the interest of the consumer in mind.

A life insurance agent, on the other hand, typically works for an insurance company. They will want to ensure that you choose one of their own insurance products and unfortunately, the agent might not always be able to present you with an insurance product that fits your needs.

Benefits of Using a Life Insurance Broker

Using a life insurance broker can mean you will save money. A life insurance broker will not charge any fees for their advice or for finding life insurance quotes. They receive a commission from the insurance company you choose to go ahead with. A life insurance broker will go above and beyond to get you the best deal on the market for the best price.

what does an insurance broker do for clients, life insurance wigan, life insurance uk

Furthermore, you won’t have to spend hours researching all the different insurance companies and insurance policies that are out there. The broker will do that for you.

A life insurance broker is also best positioned to suggest best deals for critical illness and other life insurance related products. If anything is too complex for you to understand, a broker is there to help you to explain, to understand, to simplify the process.

You will save a lot of time and stress by making use of a life insurance broker. It can give you a lot of peace of mind once you finally have a life insurance policy in place. You will know that your loved ones won’t be left with any debts after you die.

A Thorough Mortgage Broker

A good broker will be able to answer any questions you have. This way, you can be 100% sure that the life policy you take out will fit your needs.

Things to Look Out for When Choosing a Life Insurance Broker

Arranging a life insurance policy isn’t something you do on a regular basis. Make sure your life insurance broker is FCA (Financial Conduct Authority) registered and knows what to do. A life insurance broker should be credible and qualified and should be well up on correct policy and procedure. If a life insurance broker stops trading, you don’t lose money or your policy – you will still have protection.

 

life insurance agent compared to life insurance broker, life insurance UK

Questions to Ask a Life Insurance Broker

There are different life insurance brokers out there, in different cities and different towns across England and the UK. They each have their own qualifications and experiences.

  1. What qualifications should a life insurance broker have? Insurances can be very complex, and it’s not unreasonable to assume that the more qualifications your brokers has, the more knowledgeable they are in the industry. Of course, new brokers might not have much experience, but they will be qualified. If you don’t like how things are going, you can always opt out of his services and call another broker.
  2. Is the insurance broker independent and able to access the entire insurance market. When you’re working with a tied broker, he or she has a smaller number of insurers to contact, meaning you won’t have as much choice as you have with an independent broker.
  3. Make sure a broker has your best interests at heart. You are free to ask the broker how he or she makes money – they are obliged to answer this question by law. A broker is also obliged to say how much commission they make on any deal. You can tell by the way the broker answers this question whether he has your best interest at heart, or is just trying to steer you towards an expensive insurance so he can get a higher commission.
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Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

PRIME..A LIFE INSURANCE BROKER AND MORTGAGE BROKER YOU CAN TRUST

Setting up a life insurance policy is not always an easy thing to do on your own – a lot of people benefit from being guided from start to finish. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists at your disposal – with you at every stage of your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you so you can still focus on your day to day life.

Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and across the UK, on Trust Pilot and Google and online.

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Perhaps you have further questions you would like answers to? Like..what do I do next?, where can I get a life insurance quote? Can you find an insurer for me? What can I do to find the best possible insurance policy? Our dedicated team has the advice and answers to your questions.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death – don’t wait until it’s too late. You can find out more about us here  so if you need help with anything involving Life Insurance and Mortgages, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form. You can also telephone our friendly dedicated team 01942 665436

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Can you Lie in a Life Insurance Application

Can you Lie in a Life Insurance Application

Can You Lie in a Life Insurance Application

When a claim is made an insurer will obtain medical records and check that answers to medical questions given on an application were correct. If a deliberate lie was detected, then this could result in the policy not paying out the full sum assured or only paying out a proportionate sum assured.

For example, if you say you are a non-smoker but your medical records show you were a smoker at the time of the application, the insurer will calculate what premiums you should have been making on the policy and then work out the sum assured which will be paid out based on the actual premiums you paid.

If however, you stated your had no medical disclosures at the time of application but you were recently diagnosed with cancer for example, this would have meant that cover would not have been possible at the time. Therefore the insurer would not pay out the sum assured but may refund you the premiums paid.

can you lie in a life insurance application

 

If you want the short answer the definite answer is no. If for any reason your fraudulent life insurance application goes undetected but you die in the first 2 years of the policy going live, the insurance company can review the application that was made.

If you get caught lying on your application, you won’t get covered and the findings will be shared with other insurance companies and brokers. So, you will have ruined any chance of being insured at all. You can be prosecuted for fraud so honesty is always the best policy. It won’t be just you that loses out if your policy doesn’t pay out, it will also be your family.

Declined for Legal Reasons

Life insurance is highly regulated, so applications can be turned down because a risk is too great to take on and for genuine legal reasons. If you have a high chance of dying or if your lifestyle habits are very high risk, it can be more difficult to obtain life cover.

 

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More Reasons for Denying Life Insurance Cover

  • Perhaps you have been requested to attend a life insurance medical exam. If a condition is discovered, the insurer may require you to prove that you can manage your condition successfully before agreeing to start life cover.
  • Regarding age, there are minimum and maximum basic age requirements with insurers. Age requirements can vary from one life insurance product to another. Separate insurance can be taken out if you are over or under a certain age, for example: there are insurers that focus on people over a certain age and children.
  • If you try to apply for an exceptionally high death benefit, you could be rejected if the value far outweighs your current income.
  • Applying to insure someone else can present it’s own difficulties, because failure to prove that you would suffer a loss financially if that person were to die, your application would not be approved.
  • Some insurers just won’t provide cover if you have a pre-existing (before you make the application) medical condition. For  instance if you have heart disease, uncontrolled diabetes or cancer.
  • If you already have cover in place an insurer might reject your application.

 

do not make a false life insurance claim

 

Life insurance application rejected?

You can still get a life insurance policy if you have been rejected by an insurer. Much will depend on why you were rejected and it doesn’t mean you shouldn’t give up. A UK life insurance broker like Prime Financial Solutions and Mortgages Ltd will search the whole of the market for you.

To prevent further life insurance application rejections, approach an FCA regulated life insurance broker who will source the best possible policy for you to consider.

 

life insurance wigan uk

 

Prime Financial Solutions and Mortgages Ltd

Prime can help you when you need help with Life Insurance and any of the following, Contact us – 01942 665 436:

 

 

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PRIME FINANCIAL SOLUTIONS AND MORTGAGES LTD – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK

Setting up a life insurance policy is complex and can be a very stressful time. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you supporting you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you leaving no stone unturned. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan, Greater Manchester and the rest of the UK, on Trust Pilot and online.

Perhaps you have questions you would like answers to? Like, What can Prime do? How to get your free Life Insurance Quote? Our dedicated team of FCA experienced experts is here to help.

Life Insurance is the simplest, most popular and best way to ensure that your family is taken care of in the event of your death. You can find out more about us here and if you need help with Life Insurance and Mortgages, Prime can 100% help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436

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Life Insurance with Cancer

Life Insurance with Cancer

Life Insurance with Cancer

If you’ve just been diagnosed with cancer or you have had cancer for some time, you will be going through a torrid time, most probably the worst experiences in your life so far.

When gene changes occur over the course of a person’s life, cancer (there are more than 200 types) can become the reality the most unfortunate outcome.  Irregular cell growth can lead to tumours and cancer can spread to different parts of the body.  There are cancers that can be cured (remission) and some that can’t, so cancer can come back.

Different cancers include:

  • Leukaemias
  • Carcinomas
  • Brain tumours
  • Lymphomas
  • Sarcomas

Treatment for cancer affects the whole body and not just the cancerous cells, so the effects on the systems within the body can be immensely traumatic. What if you don’t have a life insurance policy in place? Should you be concerned about the validity of the policy you currently hold?

life insurance for cancer patients

UK Life Insurance with Cancer History

It won’t be easy to get life insurance if you’re still being treated and premiums will be much higher. Normally you can expect insurers to offer life to cancer sufferers who have been in remission for at least 2 years.

What if you already had life insurance cover before you were diagnosed? If you did and you were 100% honest in your application, your insurance company would have to honour it. It is best to stick with the policy you have because getting a new policy will be more difficult to obtain.

Getting Life Insurance after Cancer

You can get life insurance with the cancer you had excluded from a policy. So you can still obtain new life cover if you die from a different health condition in the future.

can you get life insurance with cancer

My Cancer is terminal Can I Still Buy Life Insurance?

You can still buy life insurance but with very limited options including lower death benefit payouts, if you have a terminal illness such as cancer (Breast cancer for example). You will be able to apply for a guaranteed instant issue policy where there are no medical examinations and no health questions to answer – even if you have stage 4 cancer.

Insurers regard someone with terminal cancer as being very high risk and premiums will reflect this. Depending on your budget, an option going forward would be to consider buying multiple guaranteed issue life insurance policies.

This will mean Death Benefit will be much higher upon your death. If you are over 50 years old and you have a terminal illness such as cancer you would be limited to an over 50’s plan.

  1. A medical examination would not be needed
  2. Acceptance is guaranteed – even if you have stage 4 cancer
  3. Cover is available to any UK resident who is aged between 50 and 80 (subject to premium limits and sum assured)
  4. With this type of cover, if you die from an accident inside the first 2 years, your estate will receive a lump sum of 300% of the sum assured, but the maximum payout is £48,000. Your estate would receive 150% of premiums paid if you died within the first two years (if you didn’t die from an accident). The sum assured would be paid out (on natural death or accidental death) after 2 years of having the policy
  5. You would stop paying premiums when you reach the age of 90, and you would enjoy the same cover.
  6. It is possible to take out many policies if this is your preference – as long as the total premiums don’t amount to more than £75. It is important to realise also that the combined sum assured across all policies you take out should not exceed more than £20,000 (but there is a maximum of £10,000 if you are aged between 50 and 59).
  7. If someone has terminal cancer and is aged under 50 they will not be successful with a life insurance application.

 

Life Insurance with Cancer

Questions I Could Be Asked if I Apply for Life Insurance after Cancer?

An insurer or insurance broker  has the task of asking you questions about the history of your serious condition.  Every life insurance policy application assesses risk. Going through cancer can mean troubling, terribly difficult and emotional times and reflecting on those times can bring sadness and sensitivity. Honesty is always the best policy. Be prepared for questions such as:

  1. What type of cancer
  2. What stage cancer was it
  3. When was your cancer first diagnosed
  4. Was it malignant and did it spread to other parts of the body
  5. Has the cancer been surgically removed
  6. Are you a smoker
  7. Is your cancer in remission? If so, for how long has your cancer been in remission

 

life insurance wigan uk

Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

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PRIME IS A LEADING LIFE INSURANCE AND MORTGAGE BROKER – WIGAN & ALL THE UK

Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free older man with cancer in remission– we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and the UK, on Trust Pilot and online.

Perhaps you have questions you would like answers to? Like..I have just been diagnosed with cancer, can I get life insurance? I was first diagnosed with pancreatic cancer last year and I am in remission, can I be insured? I am terminally ill can you find an insurer for me? I smoke and I have cancer, what can I do to find the best possible insurance company to insure me? Our dedicated team of experts can answer any of your questions.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here and if you need help with everything UK Life Insurance and mortgages, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436

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What Type of Life Insurance is Best for Me

What Type of Life Insurance is Best for Me

What Type of Life Insurance is Best for Me?

It is vital to find a life insurance policy that enables you to feel financially secure. Imagine if you could never work again or if you were to suddenly die, where your loved ones would be left to struggle financially. A life insurance policy can provide much needed security and peace of mind.

Life insurance might not feel like one of the most exciting decisions to make but the benefits can be immense in the short term and for the long term.

Should I Consider Life Insurance?

Nothing is certain in life – we all know this as we navigate through the Pandemic globally. We have all learned not to take our own health and the health of loved ones for granted. Health insurance and car insurance are things that we tend to renew regularly without a second thought mostly; so why is it that there are still so many people in the UK who prefer not to prioritise life protection in the same way they do when insuring their pets?

Perhaps you want protection for your debts? Maybe you’d like to make sure your loved ones are taken care of financially upon your passing? You might have been allocated a substantial sum in a will, so do you know what to do?

If you get sick and can’t work do you have income protection in place? Well there are various Life insurance options to help with that. On diagnosis of a critical illness a policy can pay out, and when a policyholder dies a lump sum can be paid out. Term life insurance and Whole of Life insurance are the most common types of life insurance.

 

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What Type of Life Insurance is Suitable for a Single Adult?

At any age young or old, getting life insurance is a very positive action to take. Scenario: You live alone and you have have nobody who relies on you financially. At any age, if you should suddenly die, there will be funeral costs.

Also, if you studied in the past you might still be paying off student debts and if the documents needed your mum, dad or guardian to sign, then they would be liable for the rest of that debt on your passing. You can prevent that by taking out life insurance and choosing the beneficiary or beneficiaries.

For someone who is single with no children, Life Insurance and Critical Illness Cover would be suitable to consider. The younger and healthier you are when you start a policy, the cheaper it will be. Statistically there is a much higher chance of a Critical Illness Cover policy paying out over Life Cover.

 

life insurance for people who are single

 

If you’re single and not worried about the cost, Whole of Life and Term insurance would be options to consider. Premiums are generally lower when you take out life insurance at a younger age, plus your health and lifestyle will most likely be different compared to if you apply for life insurance in your 30s or 40s for example.

A UK life insurance broker can source Whole of Market to get quotes on your behalf so you can benefit from a policy that works for you to benefit you and your chosen beneficiaries.

Life Insurance for Older Adults

Have your children left home? You might want to consider re-evaluating your situation and your policy. And if you don’t have a policy yet, having a term policy might be of real benefit to you.

Guaranteed Life Insurance can be taken up with no medical tests (subject to terms and conditions) and with this type of insurance it’s rare to be rejected. This type of policy provides death benefit but isn’t first choice for the majority and can also carry higher premiums than other policy types.

There are pros and cons with different types of life insurance; one consideration here is: should you die within the first 2 years of starting the policy, beneficiaries will not receive the full death benefit amount. Whole of Life insurance should also be considered.

What type of life insurance is best for a 60 year old?

When it comes to choosing life insurance when you reach 60 or over term assurance and whole of life  would be policies to consider. There are various options available. Term Life Insurance is within the budget for most as it is less expensive. But there are also 3 types of fixed term life insurance policies available, and they are: level, increasing and decreasing.

The process to obtaining these policies if you are over 60 will involve in depth medical questioning from an insurer or a broker, and any fixed term premiums will be generally higher than someone who is healthier and is for example aged over 40.

What is Decreasing Term?

A Decreasing Term insurance policy will pay off long term reducing debt and will help to pay off a repayment mortgage – often used to cover a debt that shrinks over time, such as mortgage repayments. A Decreasing Term Policy will pay out more at the beginning of the policy than it would at the end.

 

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What is Increasing Term?

Increasing term insurance policies have set payouts which you decide when you start your life insurance policy.

What is Level Term?

A Level Term insurance policy will also offer set payouts similar to increasing term. However, a Level Term Policy will pay the same lump sum amount upon death no matter when this occurs during your policy. If you die on the first day of the policy, you will receive exactly the same sum as you would if you died near the end of the policy.

The Difference Between Level and Increasing Term

When you have an Increasing Term policy the payout amount will go up year after year. There is an added cost to this so your premiums will also increase year after year.

What is the Difference Between Over 50s and Over 60s Life Insurance?

There are life insurance policies which don’t require any type of medical checks or medical examination. They don’t payout as much money as the fixed term policies, but they will provide cover for essentials such as costs for a funeral and to pay any remaining bills.

Over 50s life cover is generally Whole of Life Insurance which is designed to payout if you should die no matter how long your policy has been active. Term Life Insurance however, is put into place for an agreed set amount of time. So an Over 50s policy might be suitable for someone who is 60 or over.

Generally when applying for life insurance over a specified term, lifestyle and health questions will be asked, and the next steps may or may not include a medical examination.

 

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Should I Consider Over 60s Life Insurance?

Not everyone in their 60s is retired, so if you are still working full time or part time, you might want to consider a life insurance policy that covers income you are currently bringing in to the household. If you are still paying off your mortgage and any other outstanding debts, then having life insurance will be a safety net for you and your loved ones should you pass unexpectedly.

Life Insurance for a Family

Life insurance is not just a financial commitment for you and your children, it is a very wise investment.

Should you consider ‘Whole of Life’ insurance? Whole Life Insurance means that you would be insured for your entire life, and it is more expensive than Term Life Insurance. This is because you get not just the death benefits, but because your policy will build up a cash value and you would have the option to borrow against the cash value in the future.

Insurance companies offer their own different variations of these types of policies, so searching the market via a life insurance broker to check out all of your options is very worthwhile. 

 

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Consider Term Assurance and Family Income Benefit

Family Income Benefit will make sure that your family has an ongoing income should you die. An example of how this would be a less expensive option than level term assurance is to imagine if your income after tax is £1000, setting up a policy that pays out £12000 per year for 15 years would help sa child up to the age of 25.

Family Income Benefit Insurance will give regular financial support to a family if the policyholder should pass away and if a policyholder  was to become terminally ill.

Which Type of Life Insurance is Best?

As mentioned previously, there are two main types Term Life and Whole of Life. A life insurance broker will have access to all of the different policies from many different life insurance companies across the UK including all the leading ones.

Those listed here are just the tip of the iceberg. A life insurance broker will be able to source the right deal for you, your budget and your own personal circumstances.

 

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Calculate How Much Life Insurance You Need

Using Term Life insurance as one example. If your annual salary is £30,000 per year, you could opt for a policy that covers 10 times your gross annual salary. So your cover would be for £300,000.

There is good reason for this calculation (there will be other factors as well understandably), and if your husband or wife invests it all and receives 10% return each year, they could effectively replace the £30,000 a year income without ever using the original death benefit amount.

No idea about life insurance, where do I start?

Start by asking yourself what benefits and peace of mind life insurance would bring you. Are you having a baby? Have you planned to get married? You’re self employed and you want to protect your income incase you fall ill and can’t work?

Do you provide finances to support someone else for example a family member? Perhaps you have debts your loved ones wouldn’t be able to pay if you should pass away – affecting the ability to fulfil mortgage repayments?

No matter where you are in the UK, and at what stage you are in acquiring or renewing your life insurance policy / policies, Prime Financial Solutions and Mortgages Ltd can help you.

 

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Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

 

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EXPERIENCE PRIME’S EXCELLENT REPUTATION – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK

Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and the UK, on Trust Pilot and online.

Perhaps you have questions you would like answers to? Like..am I too young or too old to get a life insurance policy? Can I write my policy to trust and do you provide advice and guidance? Can we inure the whole family? Can you help with joint life policies? Our dedicated team of experts can answer any of your questions.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here and if you need help with Life Insurance and mortgages in the UK, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436

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The Best Life Insurance Broker in the UK

The Best Life Insurance Broker in the UK

The Best Life Insurance Broker in the UK

Being named as the best life insurance broker in the UK is something every broker will aspire to and aim for, in order to insure you for life’s unexpected. There is a lot of competition from both very poor performing brokers and the greatest who offer the best services in every aspect.

Not all brokers have the same qualifications and experience. To practice in the UK a broker may have qualifications accredited through LIFB, ACII and CII.

What is a Life Insurance Broker?

First of all you might be asking.. what exactly is a life insurance broker and what does one actually do. Put simply, a life insurance broker is an expert in life insurance prime financial solutions and mortgages ltd on Trustpilot, trustpilot, mortgages, life insuranceand all aspects of it. Having access to a wide network of Insurers will save you a lot of time and frustration. A broker is there to represent the consumer’s search for the best possible policy. As a broker the premium is often lower than the client going direct to the insurer themselves.

A broker will work with the client to examine the best policy terms and conditions, price, type and coverage. A broker doesn’t sell policies for a life insurance company and a broker makes the connection between the client and the insurance company so a policy can be purchased.

To make sure you get the right policy at an affordable price,  a really good life insurance broker will use every possible skill to make sure the best tailor made life insurance products are made available to customers.

Best Life Insurance Brokers Near Me

There are many advantages and benefits of using a life insurance broker who are experts when it comes to all things life insurance. Having access to Whole of Market more often than not can bring you a a better deal.

What Role Does a Life Insurance Advisor Have?

You will find that an established broker can save you a lot of time and hassle. A broker will source life insurance products from leading UK insurers, and can often find deals with a lower premium (including multi policy options). If you decide to go directly to the Insurer (not the broker) you could miss out on something much better.

You can save money by using a broker’s experience and expertise. A broker will make sure you aren’t sold products that you don’t need.

A UK Broker Should Be Authorised by the FCA

Life insurance brokers are authorised by the FCA (Financial Conduct Authority) so when you speak to specialist advisors you should be speaking with advisors who have years of experience behind them. The FCA is there to make sure the broker works mainly in your interests to bring you the right policies.

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Using a Life Insurance Broker – Benefits

  • Flexible approach and not restricted to just one company for quotes
  • Access to a very wide range of life insurance products
  • As a broker the premium is often lower than the client going direct to the insurer themselves
  • Access to life insurance companies not listed on comparison websites.

Life Insurance Broker v Life Insurance Agent

When choosing someone to act on your behalf, it’s important to make the choice that’s right for you (an informed one).

 

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Life Insurance Brokers

Brokers represent consumers (the buyer). Qualified and licensed. Adheres to local and national laws and regulations.

Life Insurance Agents

Agents represent one or more insurance companies. Agents can complete insurance sales from start to finish (bind coverage). Qualified and licensed. Adheres to local and national laws and regulations.

Is your Policy Still Fit for Purpose?

How old is your life insurance policy? Has your lifestyle changed? Are you married now? How about your health and personal circumstances? Are you getting full value from your current policy? Is it fit  for purpose?

Having life cover that performs better is achievable. A broker can advise on what you should have in place. Cheap cover doesn’t meant it’s the best and it all depends on the type of policy you are looking for. Your policy can be reviewed to make sure it’s suitable for you and your current circumstances.

 

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Why Prime Financial Solutions and Mortgages Ltd?

  • Enjoy a personal service from a dedicated adviser who will represent you. You come first every time
  • We are an independent Insurance Broker
  • FCA approved
  • We offer impartial advice
  • We are a leading established Wigan based Insurance Broker in the UK
  • Our team will leave no stone unturned to get you the right solutions
  • Life Insurance recommendations from highly qualified and experienced advisors
  • Years of experience – you’re in the right hands

 

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Prime UK – a Personal Service

We treat every client the same with professionalism and respect. Finding life insurance can be a stressful time and very time consuming. From the outset we work one to one with clients to provide a seamless enjoyable experience. You matter we care.

Prime UK – Independent Market Analysis to Whole of Market

Prime Financial Solutions and Mortgages Ltd will always listen to your needs and we will search the whole of market on your behalf.

What the Prime Process Entails

  • We will talk with you and discover your requirements. Eg: your budget, the type of cover and length of cover.
  • We will then search the market which enables us to source deals where the premium is often lower than the client going direct to the insurer themselves
  • Prime will then advise you of all of the options available to you and you can let us know which deal you would like to proceed with
  • We won’t show you offers that won’t be of benefit to you
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Deal with our Team and Build Trust. We Don’t Outsource our Telephone Services.

Our dedicated team at Prime is personable, honest, discerning, approachable and professional. We aim to build relationships for life, we care.  We can communicate with you by telephone, e-mail or we are happy to arrange face to face discussions and visit you.

Affordable and Don’t Pay for What you Don’t Need

Is your policy up for renewal? Contact us and see if we can improve your renewal premium.

 

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Prime Financial Solutions and Mortgages Ltd

If you need help with Life Insurance, a Free Life Insurance Quote and any of the following, Prime can help – telephone 01942 665 436:

 

 

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PRIME FINANCIAL SOLUTIONS AND MORTGAGES LTD – WIGAN, GREATER MANCHESTER & ALL OF THE UK

Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and the UK, on Trust Pilot and online.

Are We the Best Life Insurance Broker in the UK

So, which life insurance company is the best in the UK? Well, we will let you decide for yourself and in the meantime, as one of the leading Life Insurance brokers in the UK ourselves, we can offer you a fantastic service from start to finish.

Perhaps you have questions you would like answers to? Like.. What can Prime do for me? Will Prime work one to one with me? Will Prime source all UK life insurance products available to me? Our dedicated team of life insurance experts can answer any of your questions. We can also help with mortgage products – so please let us know.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here and if you need help with anything else, Prime can help. Click here to Get a free Life Insurance Quote or use our quick contact form. Telephone our friendly dedicated team during office hours 01942 665 436

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Will My UK Life Insurance Payout be Taxed?

Will My UK Life Insurance Payout be Taxed?

Will My UK Life Insurance Payout be Taxed?

Legally there is a requirement to pay inheritance tax on life insurance payouts but not in all cases. There are certain conditions attached to that, whereby paying IHT will not always be expected. There are considerations such as: what is the value of the estate? Criteria may dictate that you don’t have to pay IHT at all.

If you hope to leave your family an inheritance, life insurance is a sensible, realistic investment for yourself and your family. But what will happen to the payout of your policy in the event of your death? When an insurance claim is judged to be successful, beneficiaries will usually receive the agreed amount as set out in a policy.

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With whole of life cover, there is a period of 2 years whereby if death occurs from anything other than accident, the family will get 150% of premiums paid. If death occurs by accident in the first 2 years 3 times the sum assured will be paid out. After 2 years only the sum assured will be paid out on death whether it is natural or accidental.

With term assurance, there is no qualifying period so if someone sets up a policy today and dies tomorrow, the full sum assured will be paid out. There is normally no income tax to pay (also includes capital gains tax) on a life insurance payout (providing regular scheduled income or a single payout). But 40% IHT (inheritance tax) can be deducted from a pay out (excluding a spouse or civil partner), if the estate total is more than £325,000.

When a life insurance policy is written in trust IHT can be avoided and it is legal if you choose to do so. (Prime recommends putting a life insurance policy in trust as soon as possible).

 

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When Life Insurance is Part of the Estate

A life insurance policy will usually be part of the estate of someone who has passed, so a large part of a payout of life insurance may be subject to IHT.

What is an Estate?

When a person dies everything they own in that moment is called their estate. An estate can include such things as cars, houses and property, money and personal possessions such as watches and jewellery. PLUS the money that comes from a life insurance policy. Leaving the family home to children or grandchildren will increase the IHT threshold from £325,000 to £425,000.

Calculating the Value of an Estate

Put simply, this is subtracting ‘value of liabilities and debts’ from the ‘value of the assets’. Cost of legal fees should not be included in calculations, thus,

  • Work out the total value of liabilities and debts: credit card debt, mortgages and loans fall under this category.
  • Make sure paperwork is accessible and stored safely away with accurate calculations. This information may be required by HMRC at a later date, so having this will make the whole process much more manageable.
  • Find out the total value of all assets including property, money, life insurance, possessions, gifts made during the 7 years prior to death.

Benefits – writing a life insurance policy in trust:

  • The sum assured will not be subject to IHT if it is not a part of the estate. There are two trust types and they are discretionary and absolute (beneficiaries will stay the same – permanent). A trustee will be required.
  • Payment is made to beneficiaries when a death certificate is made available. Waiting for a will and probate can take a long time, so when a policy is not written in trust, beneficiaries will have to wait a lot longer to gain access to estate assets. This can present big problems for loved ones who will need to continue with things such as paying household bills and mortgage payments.

Life Insurance tax thresholds

  • The IHT first threshold is currently £325,000.
  • Married couples and civil partnerships, can transfer the £325,000 between them if one of them dies, so the threshold can double up to £650,000.
  • The residence threshold means parents can avoid paying IHT on up to an extra £175,000. The house must be left to a child or a grandchild in the family though.

A Life Insurance Beneficiary Can Delay a Payout

The majority of life insurance payouts are allocated in a single amount. A beneficiary can opt to delay the process of receiving the payout straight away. Another option is to receive installments over a longer period of time. An insurer can charge Interest (%) on delayed payouts, and interest can be subject to tax.

When does inheritance tax have to be paid?

If you are the beneficiary of an estate, IHT has to be paid within six months of the policyholder passing. Interest is normally paid if the tax is not paid in time, and interest can accrue further. Smaller gifts can be exempt from IHT, but larger gifts given in the the 7 years prior to someone dying can be subject to being taxed. IHT on gifts is dependent on when the gift was bought and how much the gift cost.

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Is it possible to avoid paying inheritance tax?

Yes it is. Here are some ways you can reduce the amount of IHT that your beneficiary would otherwise have to pay.

  • Pay regularly into a pension instead of just a savings account
  • Send gifts to the value of £3000 each year to loved ones.
  • If a 10% donation to a charity is promised to a charity, IHT will come down from 40% to 36%

Remember if you set up a life insurance policy in trust, this will mean potential savings on IHT in the future.

Can I use life insurance to pay inheritance tax?

Taking out Level Term Life Insurance (written in trust) will mean that you can gift your nearest and dearest a valuable gift. If a policyholder dies 7 years following the purchase of that gift, this type of insurance will cover the inheritance tax bill for that gift.

If you expect beneficiaries will have to pay IHT when you die, it would be wise to apply for a Whole of Life Insurance policy (write this in trust).

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Prime Financial Solutions and Mortgages Services

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

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EXPERIENCE PRIME’S EXCELLENT REPUTATION – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK

Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and the UK, on Trust Pilot and online.

Perhaps you have questions you would like answers to? Like..is there a penalty for cashing out life insurance? How can you withdraw money from the cash value? How to surrender a policy? Our dedicated team of experts can answer any of your questions.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here and if you need help with Life Insurance and UK Life Insurance Claims, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436

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Life Insurance and High Blood Pressure

Life Insurance and High Blood Pressure

Life Insurance and High Blood Pressure

Taking out life insurance when you have high blood pressure isn’t necessarily more expensive but with some insurers it can be seen as more of a risk, so quotes and policies from insurers may vary from one to the next. Often there is no need for medicals or any follow up reports from your doctor. Medical reports can only be obtained with your consent and costs for this would normally be met by the insurer.

Insurers will grade the risk along with your overall health when it comes to pricing up a life insurance policy. There are 2 main types of Term Life Insurance that need to be considered – level and decreasing. You can have guaranteed or reviewable premiums with both and on level term assurance you can have level or increasing cover. There is also whole of life assurance which will pay out on death whenever it occurs.

This you can have with guaranteed or reviewable premiums and level or increasing cover. Often, it is best to have a combination of these insurance types to improve the cover. Life insurance is one of the best ways you can protect your family from financial hardship in the event of your death. life insurance with high blood pressure

Having, certain medical conditions can make it expensive or even impossible to take out life cover, so what choices do you have if your health condition is serious? High blood pressure is a chronic condition and one which if left untreated can lead to further long term health problems. Elevated blood pressure affects around 25% of UK adults.

What is High Blood Pressure?

If left untreated, high blood pressure can lead to much worse health conditions such as heart attack and stroke. Blood pressure readings will the amount of pressure which is being put on heart’s arteries. Therefore, high blood pressure can be measured by looking at the blood’s diastolic and systolic pressure readings.

Perhaps high blood pressure runs in your family? An unhealthy lifestyle with bad dietary eating habits, a high pressure job, or other illness are some factors that lead to high blood pressure.

 

Blood Pressure – How High?

Affordable life insurance with a high blood pressure condition is certainly attainable. By definition, high blood pressure is normally acceptable for insurance purposes, when the reading reaches 140/90mmHg over a sustained period of time (requirements may differ from insurer to insurer for).

High blood pressure won’t normally disqualify you if you have a life insurance policy already, but if BP readings are regularly around 180/110 the policy would have to be reviewed. When people follow a treatment program with their doctor, the readings can fall below 180/110.

On filling out an application for life insurance, there are insurers who will require further details about your condition and how you manage on a day to day basis. The following should be considered: frequency of  blood pressure checks, the names and types of medication, historical information and anything else that will benefit the application.

With accurate data, an insurer can provided the best, fairest, affordable quote. Your GP will be requested for medical information which will help the insurers, and information supplied may include: hospital tests, hospital admissions, Body Mass Index checks and data on heart and diabetes tests.

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More High Blood Pressure Considerations:

  • Are you taking medications to lower your blood pressure / how long have you been taking those?
  • When did your doctor first diagnose you with high blood pressure?
  • Do you have diabetes?
  • Does a cardiovascular problem (eg heart) run in the family (hereditary) ?
  • Do you currently have high cholesterol or a history of high cholesterol?
  • What is your weight and height – what is your BMI (body mass index)?
  • When was your last blood pressure reading and what was it?

I take blood pressure medication – can I still apply?

Blood pressure medication can actually be a helpful factor not a negative one. Using medication to lower blood pressure doesn’t mean that you will always be quoted extortionate monthly premiums. Applications for life insurance have to include all medical conditions.

In cases where blood pressure is hard to control and the blood pressure is constantly higher than normal, it will be more difficult but not inconceivable to find the right life insurance policy. A specialist insurer can usually be found quickly by a broker.

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Prime Financial Solutions and Mortgages Services

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

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EXPERIENCE PRIME’S EXCELLENT REPUTATION – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN, GREATER MANCHESTER  & UK

Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey with from day 1. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive from customers in Wigan, the UK, on Trust Pilot and online.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here.

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Prime – Speak to the Experts

At Prime we have experienced and a dedicated team of experts, and we have access to the leading insurance providers in the UK. Prime is in a strong position to negotiate deals for clients with high blood pressure and other health conditions. If you have high blood pressure, we will find the right life insurance policy for you.

If you’d like us to assist you in finding a quality affordable life insurance policy – which will bring you and your family peace of mind –  we have access to the the best UK insurance lenders. Specialised lenders who already help people with chronic conditions such as high blood pressure.

You can use our quick contact form or call us today 01942 665436. If you would like to get a free quote please visit our life insurance quote page to find out more. Once we have heard from you, we will be in touch.

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Is a Life Insurance Claim in the UK Taxable?

Is a Life Insurance Claim in the UK Taxable?

Is a Life Insurance Claim in the UK Taxable?

It is assumed by many that beneficiaries of a life insurance claim payout would be expected to pay some form of inheritance tax. Inheritance tax though is not normally payable if the value of the estate is not more than £325,000 and your money and property are included in that.

The regular inheritance tax rate is 40 percent and is paid above the minimum only on the remaining portion of the investment.

Essentially, life insurance pay outs are usually not subject to capital gains tax or income tax.

** Prime recommends that you put your policy in Trust to avoid Inheritance Tax

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Life Insurance Products – How to Use Them

Life insurance products can be used in the following ways:

  1. pay out to a beneficiary when the policyholder dies
  2. as a way to invest
  3. as a qualifying or non-qualifying insurance policy

A policyholder can partially surrender a policy which is non-qualifying to defer the income tax charge

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Life Insurance Claims

Insurance claims are sometimes inevitable when someone dies and when a payout is approved, you may be wondering if any of the funds will be considered as taxable income.

If something terminal should happen to a life insurance policyholder, an insurance claim would need to be filed. If you have an insurance policy, you will probably ask if the payout will be taxed or not.

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Income from your Life Insurance Claim

The income from your insurance claim might not be taxable. If there is no explanation of the intent of the payment, it is likely to be intended to cover medical costs and pain and suffering.

It goes without saying that you should always ensure that you pay the required tax on your taxable income.

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Life Insurance Income Can be Non-Taxable

It is important to understand which income is non-taxable. Tax is usually paid on taxable income and you do not want to include any non-taxable income in your account calculations. When you work out taxable income, you will also need to consider tax benefits as well as tax deductions.

There are some types of income which are non-taxable in England and those types of income can usually be disregarded for tax purposes. Life Insurance claims are not taxable if you are ill or injured. If you are unemployed insurance claims are generally not taxable.

More About Inheritance Tax Responsibility Trusts and Life Insurance

Inheritance tax will be charged if your life insurance payment raises the gross value of your property to a figure above the minimum. However, if your life insurance policy is legally recognized as a Trust, the value of the fund can be exempted from the official inheritance tax limit.

If you decide to write the policy in trust, there is no added cost to do so if you already have a life insurance policy. So you can write a policy in trust any time after a policy has begun.

The return does not go to the legal property, so when you write a life insurance policy in trust, it will not be calculated in the inheritance tax threshold. So it can be safely assumed that the full payout amount of the policy will go to the person to whom it is intended – the beneficiary.

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Prime Financial Solutions and Mortgages Services

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

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EXPERIENCE PRIME’S EXCELLENT REPUTATION – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK

You always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey with Prime from day 1. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive from customers in Wigan, the UK, on Trust Pilot and online.

Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. Click here to use our quick contact form. You can also find out more about us here, and If you need help with Life Insurance and UK Life Insurance Claims, Prime can help. Click here to Get a Life Insurance Quote and you can telephone us 01942 665 436

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Can Life Insurance in the UK Pay for Inheritance Taxes?

Can Life Insurance in the UK Pay for Inheritance Taxes?

Life Insurance and Inheritance Tax

Getting the right life insurance policy in place to protect your loved ones is essential and it’s easier when you have the right professional advice. It’s important to establish what life insurance is and to understand the implications of inheritance tax in the UK when a life insurance claim pays out. Currently (2021) There is no set life insurance tax applied to the money paid out to beneficiaries.

It was once the case that IHT applied to mainly the wealthy but now a greater portion of people in the UK are liable to pay IHT upon their death.

Once life insurance revenues are paid are they taxable? Who pays the tax and why? How much would the inheritance tax be and is inheritance tax on UK life insurance applicable? A good structure to a policy will mean that payouts for your nearest and dearest will be a relatively easy process in the even of a claim. Life Insurance may be subject to Inheritance Tax if it is part of an estate. Essentially, the question is: does the beneficiary pay inheritance tax on Life Insurance?

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Is Life Insurance Taxable? What about Inheritance Tax?

There is no set UK tax that affects a life insurance payout but there are factors where much depends on the value of the estate which is left behind for your nearest and dearest. If the total value of your estate is in excess of £325,000 (and if divorced or single) then no IHT is paid.

Also, if you are a married / widowed beneficiary receiving an estate of more than £650,000 IHT can then be determined at 40% of the value of your estate. So, IHT is charged only on the part of your estate that’s above the threshold.

All IHT activity and responsibility should always be reported to the HMRC. In the event of someone’s passing, Inheritance Tax (IHT) is a tax which is applied on the net value of an person’s estate. Perhaps there are investment funds, high costs and family legacies included in the estate?

Many life insurance plans are part of the estate you leave behind for your loved ones. Many have a life insurance policy which is written in trust (Prime recommends setting up a trust fund).

Types of Life Insurance

There are three main types of Term Life Insurance that need to be considered – level, decreasing, and whole of life / increasing term insurance. Often, it is best to have a combination of these insurances to improve the cover. Level term and decreasing policies are taken over a specific time period and are generally the cheapest and simplest form of life assurance.

  • A level term policy will pay the same lump sum amount upon death no matter when this occurs during your policy. Therefor if you die on the first day of the policy, you get exactly the same sum as you would if you died near the end of the policy. Throughout, the sum you are compensated for remains equal-hence the name.
  • A decreasing term policy on the other hand will pay out more at the beginning of the policy than it would at the end. As the sum assured reduces through the term and is more commonly used to cover a repayment mortgage. often used to cover a debt that shrinks over time, such as mortgage repayments.
  • Whole of life insurance is different from term assurance as it will pay the sum assured on death regardless of what age that occurs. Whole of Life Cover will generally cost more than term assurance as you will be covered until you die. Your family can make the most of a payout should an insurance claim be made.

Level term and decreasing policies are taken over a specific time period and are generally the cheapest and simplest form of life assurance.

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A Life Insurance Policy Written in Trust

  • It is the policy holder who decides how the life insurance payout is shared out and to whom. For example, some of the funds may be released immediately, and the rest payable on a date and time of choice.
  • There are many types of IHT so it can be a very complex process if a life insurance policy is not written in trust. For example, probate issues can take months to resolve especially if the policy holder did not leave a will; so having a life insurance policy written in trust can make matters much easier.
  • There are many IHT forms involved when paying inheritance tax, and the fees involved employing professionals to handle them can soon mount up. Dealing with inheritance tax for life insurance can be very complex.

Essentially, the Life Insurance payout will go into a trust. A trust is managed by set trustees (assigned by you – this could be a family member for example, or a solicitor). The policyholder gets to choose the conditions of who gets what, where it is paid and to whom any funds are paid.

A policy written in trust will release funds faster and the process will have less hassles.

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Approximately 6% of Life Insurance Policies are Written in Trust.

A new or an existing life insurance policy can be written into trust. Having a trust can bypass the complexities of having to deal with inheritance tax, but policies written into trust (or transferred into trust) means getting the right professional and legal advice to help you navigate the hurdles involved.

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When a policy is in trust, everything associated with the terms of the trust is created by the policyholder. The terms of a trust should be clear and an informed decision should be made before making a decision.

Written in Trust – What Happens Next?

The policyholder does not retain control when a life policy goes into trust. When trustees are assigned control (a policyholder can also be a trustee), the process cannot be cancelled and the terms of the particular trust used cannot be changed.

Again, it is important to make a fully informed decision so the best possible protection for your loved ones can be put in place.

Prime Financial Solutions and Mortgages Services

If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:

 

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PRIME FINANCIAL SOLUTIONS AND MORTGAGES LTD – LIFE INSURANCE, INHERITANCE TAX & TRUSTS

THE LIFE INSURANCE AND MORTGAGE BROKER FOR WIGAN & THE UK

You always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey with Prime from day 1. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting.

Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive from customers in Wigan, the UK, on Trust Pilot and online.

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Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death and managing your policy in the right ways is all important.

You can find out more about us here, Complete our quick contact form and should you need help with setting up a UK Life Insurance policy, our friendly team here at Prime can help. If you would like to have a free Life Insurance Quote click here and you’re welcome to telephone us during office hours 01942 665 436 where you can speak with one of our dedicated Prime advisors.

The following are some of the mortgage lenders and insurance companies that we compare quotes from:
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For more complex cases that require additional research and sourcing resources, for example adverse credit, complex incomes, debt consolidation, or restricted eligibility, we may charge a fee of 1% of the loan amount with £295 payable on application and the remainder on completion. If this additional fee is payable we will confirm the amount to you on the Client Agreement before proceeding further.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Prime Financial Solutions and Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. FCA Register No 790596. Registered in England and Wales No: 10947837. Registered Office: Rodney House, King Street, Wigan, Lancashire, WN1 1BT. Calls may be recorded for training and monitoring.

If you wish to register a complaint, please write to Prime Financial Solutions and Mortgages Ltd, Rodney House, King Street, Wigan, WN1 1BT or telephone 01942 665436.