Insurance in 2018

I was reading yesterday on the financial blog of about the predicted economic downturn in 2018 for Europe.

Economic downturnThis got me wondering if there was any insurance product that could be used to combat a situation like this? Yes, of course there are smaller type insurance deals available that protect if one loses their job or has an accident that means they can no longer work, but is there an insurance product that pays out during a downturn of the economy?

If there were such a product, insurance companies would cram it full of caveats, the markets would have to shrink for 2 consecutive quarters – officially in the UK this is known as a recession.

As the recession bit harder there would be more red tape added to stop people claiming, something like people having to have been out of work for 6 months, continuously, and “actively looking for work”. This type of insurance would soon not be worth having as everyone who has it who is not working would be claiming it.

Anyway, let’s see what 2018 brings to the markets in general and to the products offered by insurance companies.


Life cover with mental condition

My daughter has just returned from the Dr’s with a bag containing some anti-biotic cream for her hands. She has seriously dry skin, brought on in large part to the fact that she keeps washing her hands almost all the time.

This is because she is terrified of germs. Telling her that germs are everywhere and talking about the body’s immune system doesn’t seem to do any good either. It’s not something that either of her parents have but she’s got the idea from somewhere. Perhaps it’s a mental condition? – see this useful link about mental illness from the Mind web site

Having a condition like this shouldn’t really stop anyone from getting a mortgage and therefore appropriate life cover as the condition is not life threatening. But what about what’s behind the condition?

I am confident that in a few years insurance companies will have invented a whole new class of insurance product specifically aimed at people like my daughter. Why? Well it’s billable isn’t it? You can make money from it. Need I go on?

So there we are, a new product that insurance companies can sell – life cover for people with mental illness. In fact there are probably a few of these policies around already, but in a few years times, with the huge rise in mental health problems brought on by stress, they will be much more common.

In the meantime, the deliberately underfunded NHS continues to do it’s best to help. The powers that be however, want to see the NHS privatised and sold off? Why? So they can buy it and make money from it…. What good is a free service to a business that could replicate what the service does and charge people for the service it provides. We live in a society where capitalism has gone mad.

Life Assurance for Lupus

I am looking to buy a house with my husband and two children buy have hit a snag and am wondering if you can help me?

We have been mortgage owners for some 12 years or so but I have recently learned my husband has contracted Lupus. At the moment it’s in a mild state but I am aware that the condition can worsen over time.

critical illness graphicAt a recent meeting with our mortgage provider we were told that they would no longer be able to continue offering us a mortgage when our current term expires. This leaves us in rather a pickle as the mortgage expires in 6 months and at the moment we don’t have another unsecured mortgage. I look at our life assurance and other insurance policy and sure enough we are not covered for Lupus.

I recently heard though that some companies are now offering niche life assurance policies that insure the holders for illnesses such as Lupus in a sort of ‘bolt-on’ policy. I’m wondering where I can find a policy like this?

Once we are sorted with critical illness life insurance cover I believe it should be relatively straight forward to continue with our mortgage. Is there any advice that is known about regarding the existence of insurance policies that cover critical illnesses like Lupus?

Looking to insure Type I Diabetes

Whilst I was attending a meeting on the general subject of insurance and life assurance several days ago, and interesting question came up: Is it possible to get a mortgage and therefore get a house if you have Type 1 Diabetes?

It’s an interesting question because Type 1 Diabetes is  related to shorter life expectancy – so 20 years historically, but not the life expectancy is getting longer.

So, how will a bank or building society who are lending you money over 25 years to buy your house going to react when they hear you have Type 1 Diabetes and your life expectancy is significantly shorter than it would have been? Will they even give you a mortgage?

How to get a mortgage with Type 1 Diabetes

We look to life assurance to help us here. There are many different types of Life Assurance and depending which company you go with, you may have cover or you may not.

This has caused a new type of life cover to arise – critical illness life assurance. This is where your condition is added to the Life Cover and you pay a premium for the privilege. But at least you are now covered and can go and get that mortgage and buy that house.

An example: Bill aged 30 has Type 1 Diabetes and wants to buy a house. His current life assurance monthly premium is £25. Some life assurance companies don’t want to know anymore and will not insure him. Others, will add £15 per month onto his life cover, which now costs £40 instead of £25, but Bill now has a mortgage and a house.

What type of life coverage coverage should I purchase?

Most people have foremost protection needs that can be blanketed by using life coverage (frequently called existence assurance):

Paying off large money owed inclusive of your mortgage
own family safety, where you depart behind money on your own family to live on after you’ve got died. Learn more about inheritance tax here –

Exceptional sorts of insurance coverage are right for unique protection needs.
looking to buy lifestyles insurance?

If you decide you need advice, make sure you consult an impartial existence coverage broker.

Time period assurance

The maximum primary form of life coverage is called time period insurance, where you pick the amount you need to be insured for and the duration for which you need cover. in case you die inside the term, the policy pays out in your beneficiaries. if you do not die during the term, the coverage does not pay out and the rates you’ve paid are not again to you.

There are principal types of time period warranty to do not forget – level-term and lowering-term insurance. sometimes a aggregate of the two is the pleasant solution.

Level-time period life insurance policies

A stage-time period policy will pay out a lump sum in case you die in the distinct term. the quantity you’re included for stays stage in the course of the term – hence the call. The monthly or annual premiums you pay commonly live the equal, too.

degree-time period regulations can be a very good alternative for own family protection, in which you want to go away a lump sum that your circle of relatives can invest to live on after you have gone. it may also be a terrific option if you want a designated amount of cowl for a positive period of time, eg to cowl an hobby-most effective mortgage that’s not included by using an endowment coverage.

Lowering-time period life insurance guidelines

With a decreasing-time period coverage, the quantity you’re included for decreases over the time period of the policy. those regulations are frequently used to cowl a debt that reduces over the years, such as a repayment loan.

Charges are normally significantly inexpensive than for level-term cover as the quantity insured reduces as time is going on. reducing-term coverage policies can also be used for inheritance tax planning functions.
own family income benefit regulations

Circle of relatives profits benefit life coverage is a kind of reducing time period coverage. in place of a lump sum, although, it pays out a ordinary income in your beneficiaries till the policy’s expiry date in case you die.

The upside of circle of relatives earnings advantage is that it’s less complicated to work out how much you want. as an instance, in case you take domestic £2,000 a month, you can set up for the identical amount to be paid out on your family if you die.

However, there is a drawback, too. if you die two years into a 20-year own family income benefit coverage, your own family could get £2,000 a month for 18 years. but in case you die a 12 months before the coverage ends, your own family receives £2,000 a month for simply one year.
entire-of-existence policies

Because the call shows, whole-of-existence rules are ongoing regulations that pay out whilst you die, every time this is. because it’s guaranteed that you will die at some point (and consequently that the coverage will ought to pay out), these guidelines are extra costly than term warranty regulations, which simplest pay out in case you die within a positive timeframe.