A life worth looking after

You have a life worth looking after. Life insurance provides valuable peace of mind that your family or other  dependants would be financially protected if you were no longer around to provide for them.

There are an estimated 3 million people in the UK living with cancer, rising to a predicted 3.5 million by 2025; 7.6 million people are living with heart and circulatory diseases and stroke strikes every five minutes*. Few things in life can provide more peace of mind than having a secure financial future.

As a minimum, it’s important to ensure you have enough cover to pay off your mortgage, as this is likely to be your household’s largest single outgoing. It’s also worth reviewing how much other debt you have, such as personal loans and credit cards. Consider too whether you want
additional protection to cover childcare costs, education expenses or household bills.

Consider critical illness cover
It can be worth adding critical illness cover for an extra premium. This would pay out a lump sum if you are diagnosed with an illness or condition listed on the policy.

Protect your income
Income protection can replace a percentage of your salary if you can’t work due to an accident or illness, helping you to keep up with financial commitments until you recover.

Time to face up

A typical non-smoking couple in their 50s  have a 28% risk of being unable to work for two months or more before they retire; a 13% risk of suffering a critical illness; 5% risk of death; 35% likelihood of any of these events happening**. In this unpredictable life, accident or illness can strike at any time – whatever your age – so it’s worth thinking about how you or your loved ones would cope should the worst happen.

You have a life worth looking after. Life insurance provides crucial peace of mind that those we leave behind won’t suffer financially, while Income Protection and Critical Illness Cover are a vital defence against loss of income and serious illness

*Macmillan Cancer Support/British Heart Foundation; ** Risk Reality Calculator, LV; 

Whether it’s young couples moving into a first home together or older pairs blending families after a divorce or bereavement, many people
co-habit at various stages in their lives. But some who have lived together for years, or even decades, might be surprised to learn
they don’t have the same legal rights as a married couple or civil partners. There are many financial decisions for co-habiting couples …

Property perils
Take property for example. If your name does not appear on the deeds, you are not automatically entitled to any share of the property, regardless of how long you have lived in it or how much you have contributed to a mortgage.

Tenancy types
That’s why it’s important to think about tenancy types when buying a property with someone else. You can choose to be joint tenants, where the property is owned equally, or tenants in common, where each person owns a specific part of the property. As a joint tenant, you are entitled to half of sale proceeds if you decide to sell the house. Crucially, your partner would also automatically inherit your share of the home if you were to die – and vice versa. As a tenant in common, you only own your proportion of the property and therefore the deceased
tenant’s part would not be passed on to you unless, for example, they had bequeathed it to you in a Will.

Life insurance
Another consideration is life insurance. Unlike married couples who receive a bereavement support payment if their spouse dies before State Pension age, those co-habiting are not eligible for financial assistance. Therefore, if your partner might struggle financially were you to die, life insurance could help provide for their needs and thus bring peace of mind once in place.

Steps to take
If you haven’t already, you should also think about drawing up a Will. Another important document to consider is a living together agreement, which can be used to set out how your possessions or assets might be split if your relationship were to end.

Talk to us
We can help you understand the law around co-habitation so that you can protect yourself, your children, and your partner so you make the right financial decisions for co-habiting couples.

 

Source: Essentially Mortgages Q1 2022

Do you need more living space? Could extending your existing property be a realistic option? So here’s the question – move or extend? Financing changes to your home such as a remortgage or equity release can make either choice a reality.

There are several questions you need to ask yourself to understand whether a home extension is a viable option for your circumstances. These include:

How attached are you to your current home?
You may have put down roots and be really happy where you are. If so, the benefits of an extension might outweigh those of selling up.

Will it add value to your property? 

It’s important to look at how much an extension will cost vs how much value it will add to your home. For example, a downstairs extension will result in a smaller garden, with the added value of extra indoor
space potentially cancelled out by the reduction in garden size.

How long do you plan to stay?
It can be several years before you reap the full financial benefits of an extension. If you are planning to
stay in your home in the medium to long-term, it is likely that your extension will become more
financially lucrative as prices rise over time. However, it may not be worth it if you’re planning to sell up
anyway in the next couple of years.

So move or extend? think about financing changes to your home – how will you fund the project? We can help you consider your financial options your property?

Education isn’t a cost, it’s about investing in your children’s future. As the summer school term ends, this time of year is an apt reminder of the investment that schooling requires not only in terms of commitment by the child, but the real price of it to parents and guardians:

  • Average cost of sending one child to ‘State school’ from year 1-11 is £1,579 a year, which equals £17,374 in total (Provident research of 2024 parents in 2020)
  • Average fees of a private school (day only) are £14,289 a year (Independent Schools Council Census 2019
  • A University course costs on average £18,540 a year (National Student Money Survey 2020)

‘State schooling’ still requires items such as:

  • Uniform (£70),
  • Tech (£85),
  • After school clubs (£106),
  • Packed lunch (£585),
  • Commuting (£60),
  • School social events (£55), and
  • Childcare (£220) per year.

Research shows that the most expensive years are year 8 and 11 (due to school trips, a cost we saved during Covid). These figures vary not only on a personal basis, but regionally:

  • London – £21,298
  • South West – £14,505
  • Wales – £15,573
  • West Midlands – £15,526

With ‘Private schooling’, all the above ‘extras’ of State schooling will still apply – although school outings, after school clubs and uniform are likely to cost more. On average, you can expect to pay the following fees per term:

  • £11,565 for boarding,
  • £6,402 for a day pupil at a boarding school, and
  • £4,763 for a pupil at a day only school.

These figures are the average per term across the 1,307 schools that participated in the census. There is also a non-refundable ‘registration fee’ and some schools ask for payment for the year rather than term by term. These can reduce with scholarships, bursaries, sibling discounts, and up-front payment. It is worth pointing out that Private school fees have risen faster than inflation every year for the past 10 years, so be prepared for further increases in the future

For University, a typical three year course totals £55,620, The cost of tuition for the majority of students in the UK is approximately £9,000 a year, plus the average annual cost of living of £9,540.

To help with tuition fees, specific tuition fee loans cover the full cost of the course, and won’t have to paid back until the student is earning above a certain level.

There are also ‘Maintenance loans’ and ‘Student Grants’ that are means tested to help with living costs.

Pre-funding and saving for this, using the many available tax shelters, can help with all of the above. If you want us to demystify the technical jargon and find a way to help you plan for your children/grandchildren’s future education, please get in touch. we can help you with investing in your children’s future.


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