Mortgage is a security that the lender makes to the borrower. One of the popular forms of mortgages is called interest only mortgages. It requires you to craft a monthly payment to mortgage lender to pay off the interest on the amount borrowed. Further a separate long term strategy should be committed in interest only mortgage and can comprise of an investment plan, inheritance or settling the property in the future.
In case of investment plan mortgage can be paid off in one of three forms; an ISA (Individual savings plan), a pension or an endowment. Such investment should not be provided by the mortgage lender.
Interest only mortgage can also converted in to a repayment mortgage in the future and becoming increasingly popular among first time buyers who get it hard at first to afford the mortgage costs. Mortgage lenders in this manner are very keen to facilitate you with interest only mortgage as specifically design product. Beware! Making your interest only mortgage into repayment form in future can cost you nominal charges from lender.
Advantages:
If your set limit of investment growth exceeds then you may able to pay off all of your mortgage before due time
You can use tax free investment plan.
Disadvantages:
If your investment doesn’t excel as per you expectations, chances are you may unable to pay off your mortgage.
Debt will remain same throughout the mortgage period.
Penalties will impose on some form of investment if you stop paying premiums.
Refinancing is very lucrative option for home owners for payments of their mortgage. Usually people opting for refinancing when interest rates falls and get money by applying for new loans to reduce the burden of existing loans .Although such offers seems very attractive but most people fall prey into wrong hands due to lot of hidden charges. Taking financial advice from any competent advisers help you out in this scenario .They know about financing more than you so be wise and consult with them before it’s too late.
As I said people having home mortgage loan mostly go for this option but you must understand the various types of mortgage loan types and their terms of the new loan. Following are some of many mortgage loan types that you may want to consider:
Sometime the loan you obtain is a no-cost from any mortgage lender but remember they are in this business for making money. So if lender is not making money then they can increase interest rates high by converting the fees into loan. Albeit there are very few banks those are offering a cost free loan but are very limited in numbers. This is the reason you must compare the lenders and get a GEF (Good Faith Estimate). Although laws don’t forces GEF guarantees but you can ask lender for this as virtually guarantee. Following are the costs that you may pay:
Lenders can waive document preparation, Administration, processing, application fees as per your request. You should also understand the YSP (Yield Spread Premium). If lender did not pay YSP to the broker, you might have received a lower interest rate on your loan. Consider it on first hand because by the time you get noticed it, probably you are about to closing the deal.
Drawbacks to Refinances
·Costs: In case you are paying fees to obtain the loan and can be expensive. To figure this out, do some math: add all the fees, difference between your old mortgage payments and you new payments. Then divide that difference into the loan fees, which will equal the number of months you must pay on your new loan to break even.
·Longer amortization Period: You have option to minimize the period of amortization, by paying your loan faster, there is no need of higher payments and to pay more each month.
Bigger mortgage: By rolling the existing loan into new loan can increase your cost so be wise in this manner as well.
Refinance Benefits
·Lower Monthly Payment: by taking new loan to pay your home mortgage at low interest rate guarantees you a greater monthly cash flow.
·Shortening the Amortization Period: If the new loan interest rates are substantially lower than the existing loan, then you must consider shortening the term of your loan in exchange for a slightly higher mortgage payment.
·Cash in hand: Many obtain cash to invest at a higher rate of return than the new interest rate.
Public Liability Insurance is insurance plans where company will pays all the claims for damages and compensation if your business has caused injury or death to public lives or damage their property. It is called must have plan for your business otherwise your business may look into serious financial trouble if all the claims need to be covered from your own pocket. Compensation amount cover by company can be extremely high and pays any related legal fees as well. Consult with your local adviser in your area for sound financial counseling.
There is no law that forced you to have Public Liability Insurance but the way it pays out in course of mishap asserted as essential part of your business. Usually most business have minimum of 2m pound cover but actually it depend upon the size of business. So you have to tailor your insurance policy that match exactly to your needs. Take advice from a knowledgeable staff from your local adviser and secure your business from any financial disaster.
Association of British Insurer (ABI) is an independent body that every insurance company should be a member of. Taking advise from any financial adviser is good option and if you are decided to do it by yourself then take all the necessary steps to check the insurer credibility. Usually, premiums depend upon type of business and rated on an estimate of the level of the business. For most of the business it is turnover, but other factors may be used. For example, in a hotel business numbers of beds used to determined the numbers of guests.
Although there is no obligation by law on you to have Public Liability Insurance but you may find it very difficult when dealing with customers’ .Because they can ask for adequate proof for insurance in order to do any business. This is the reason almost every businessman have this policy that not only help to minimize the financial burden occasionally, but also give you a peace of mind as well. You can have extra pair of hands in your decision making process by taking advice from any local adviser.
Employer’s liability insurance is a type of insurance where in course of any injury or disease if employee claims on employer then his insurer will pay the price to claimant. By law employer is bound to have such policy in order to cover the cost in occurrence of any physical injury or death to employee.
Albeit it protects the liability of employer’s on employees but not cover the claims like: Sexual discrimination, wrongful dismissal etc. These deeds not only shielded employers but employees as well in case of anything unusual happen to employees while doing their jobs. If being an employer you neglected the physical injury or death of an employee and prevented their loss, if then they decided to opting for compensation the insurer will bear all the losses.
Employer’s Liability Insurance is designed for the welfare of employees and to compensate them accordingly if they failed to work after any accident. But it all depends on to scrutinize the event that who is responsible; whether negligence of an employers or the employees. Laws forced you to have an Employer’s Liability Insurance otherwise authorities reserves the rights to shut you down permanently.
As indicated before that law compels you to have Employer’s Liability Insurance then people from any sort of business having employees must have this policy. Generally, claim can arise in number of ways, for instance: employees get injured seriously or leading to death due to employer’s negligence and will be held responsible. Thus your local adviser can provides you a set of guidelines to finalize the process from every aspect.
The Health and Safety Executives (HSE) are responsible to check the status of actually having a Employer’s Liability Insurance otherwise you are breaking a law and will be punished by them under rules and regulations. Next you are also liable to check the validity of insurer prior to getting policy. Furthermore you are also bound to show the relevant certificate to the employees by any means possible and should have the complete insurance record as well.HSE can inspect you any time and if you failed to satisfy them on papers then you will be fined heavily.
Although you can’t change the inevitable but can try at-least to make situation conducive. Suppose you badly injured due to accident and can’t work anymore, then how would you mange yourself financially? Insurance in this regard can help you through the situation and can improve your status economically.
Accident, Sickness and Unemployment (ASU) insurance give you guaranteed financial support in case of accident, sickness or unemployment. Usuasally pays you the claim under these three sections on monthly basis up to designated period of time set under the policy. Payment can last up to maximum of 12 months depend upon the plan you picked.
Your monthly benefits are subjected to falling within certain policy qualifications. Your maximum benefit amount in this regard would not exceed when combined with other similar Accident, Sickness and Unemployment (ASU) policies so as cost when combined with other protected items such as mortgage or loan.
After selecting the level of benefit of your choice the premium will be determined by the benefit amount. There are no extra rating factors involved such as age, smoking, drinking habits or life styles. Your local adviser highlights the key areas of your attention towards achieving Accident, Sickness and Unemployment (ASU) policy. You can also use it for repayments of mortgage and loans.
Accident, Sickness and Unemployment (ASU) usually covers the payments of mortgage and loans thus you can’t spare money for other daily expenses. It also can be very expensive in terms of cost and pays you for limited time or until restoration of your employment. Everyone can apply for ASU as long as your age is between 18 years to 60 years. Your working hours should be at least 16 hours in a week continuously up to 6 months. A payment generally starts after 60 days of work off.
You must differentiate between Accident, Sickness and Unemployment (ASU) policy and other policies and take a wise decision towards acquiring certain one. Covers can be as low as 4 Pounds or 100 pound of monthly benefit purchased. If you are so concerned about the prices then you must checked them from various brokers. It can vary significantly from company to company. You are directed to read the levels very carefully before selecting any plan because it may differ according to your circumstances.
Think for a second; you are running a small business with 10 to 20 employees and all of sudden one of your key man died or injured in an accident, then what will be the impact on your business? Of course it can affect you in downwards and your profit will decrease .Although insurances can’t be alternate of a person but at-least can give some stability to your business. In this hour of need insurance expert form a special type of plan called as Keyman’s insurance.
Keyman’s insurance covers the cost of business in case of any misfortune as mentioned above. It will not cover the cost of actual loss but a sum which is declared in the policy. By insuring your best employees gave maximum protection of your business and buy you a time in order to cover the cost of temporary staff, recruitment or loss of profit .Therefore, count as one of the most important insurance plan in business circle. Your local adviser will educates you with all the relevant information connected to Keyman’s Insurance and can get highly professional financial advice with no hassle.
Insurance brokers are considered well suited people for getting quote on such insurance policies. Because it’s not like car insurance where you can get a quote in minute’s .When time comes to finance matters then timely good decisions apparently can boost the chances of the recovery of your business. After referring to your local adviser the chances are high towards taking sound decisions in this endeavor. There are main four classifications of Keyman’s Insurance: Key people (covers when your influential employees are unable to work), Protect profits (pays you to protect the profit), Protect shareholders and Partners (securing the interests of partners and shareholders), and personal loan guarantees.
Keyman’s Insurance costs you in many ways like: the effect on profits if key man loss, the cost on recruitment and training in case of replacement and revoking of keyman’s loan after death or injury. Your local adviser also shares the information on the factors to determine the premium like: profit, salary, term and tax. Although taxes are exempted on premiums but you must inspect weather it qualifies for the exemption tax.
If you observe the situation in UK, you will see small that businesses with 10 to 20 employees are backbone of the country. If by any chance they failed to flourish ultimately effect the whole society. This is the reason Keyman’s insurance is designed to protect such people from any loss.
Insurance is categorized as risk management solution that indemnify in case of possible loss. It falls under many categories in terms of their working and payments. Being your local adviser we dedicated our service to counsel you in choosing your commercial insurance plan. It is a form of insurance that generally deals in property, liability and worker’s compensation.
If you want to secure your business or personal property in case of any mishap, you don’t need to worry about; our best resources will guide you throughout the process in order to help you cover the losses. Generally, property insurance is designed in a way that helps you minimize the losses. Proactive approach in this manner is always considered as a prime aspect to lower the risk. As you know the basic ideology of insurance is risk management; contacting your local adviser has set a standard that gives you peace of mind in course of opting such insurance plans.
An independent financial adviser in your area can suggests you the best among the good. There are whole array of products where you find an excellent advice while selecting insurance plans like; Debris Removal Insurance, Boiler and Machinery Insurance, Builder’s Risk Insurance, Inland Marine Insurance, Glass Insurance, Business Interruption Insurance, Ordinance or Law Insurance etc.
People more often unintentionally become liable of a loss which is not actually theirs, but still they have to pay the person who in fact faces the damages. Your local adviser in this contest steps in and advises you to go for liability insurance; also referred as third-party insurance. In such kind of scenarios all the claims are tolerated by the insurance company, but exclusive of such claims done intentionally. We also keep an eye on every minor detail regarding insurance plans and advices in Error and Omission Insurance, Malpractice Insurance, Automobile Insurance, Directors and Officers Liability Insurance.
Workers Compensation facilitates the working class in course of employee injury while working due to employer’s negligence. In case of any disaster all the claims are covered by insurance company however in some cases worker decides to settle it as tort claim and then must surrenders the payoff right on insurer.
Income protection insurance is a technique that ensures your income if you are unable to work under the circumstances of injury or illness. It suites all working people, and the actual premium you will receive solely depends upon the length of time and age. Income protection (IP) or critical illness insurance is designed to fulfill the living cost of people rather than payout after the death.
Usually income protection help you to provide a cover for about 75% of the working person salary or depend how much you going to insure .All you need is to assess the requirements of mortgage and other debts , spouse, children or other dependents. One thing is for sure; it will provide you steady stream of income in case you are sitting unemployed.
If you look around, you will find numerous companies with huge differences of covers and prices. Keep one thing in mind; premiums on income protection are not exempted from taxes, and policy costs you one week’s salary. Generally premium fixture relies on: Age (The more you get older the more premium you may get); Gender; Health and pre-existing conditions; your smoking habit; Occupation; and Time after which you wish to start receiving payments.
Your local adviser can make things easier for you while opting for income protection insurance. Albeit there are various angles and must be considered prior to finalize the agreement. We advised in your financial matters professionally and vigorously. We have compiled following some of main factors that might affect you in this process:
• Always consider a policy with index-linked premiums and cover; as you know covers will shoot the inflation
• You must be aware: What is covered and what is not; how much payout would be and cost of insurance premium.
• In many cases insurance companies reassess your health condition before renewing the policy; therefore non-cancelable policy is good option at this time
• You must read every clause carefully because it could hold your payouts
• In case of group insurance make sure about your beneficiary
• Check the benefit period and waiting period.
You are also advised to understand the terms and conditions very well .Because you can be faced claim rejection due to implications of various conditions under policy .
The Structured settlement is in use for many years at many forms but now enacted as law. It is used to settle any lawsuit or tort claim and also protected by federal and state law. If an individual had an accident, he has two options whether to resolve the matter by taking cash or filed a lawsuit for the periodic payments. In this manner insurance companies steps in that offer annuity plan for claimant.
Structured settlements based on claimant needs and circumstances and mostly design by attorney with the help of plaintiff. There is one thing very important while opting for particular agreement. Although lawyer can help a lot but injured party should also have knowledge about structured settlement pros and cons in order for successful contract. There are many combination of structured settlement that suites you under given conditions.
Following are some of many scenarios in which structured settlement can be useful:
·In case you loss a heavily due to accident or any other mishap and can delay your payments for more than 2 to 3 years. Then structures settlement can suite you well.
·In case of minor’s involvement structured settlement can also play their role. By that means you can cover the expenses of minors in youth, education, medical, and in adulthood and secure their future.
·Although many people go for lump sum if they are good spender but most people opt for structured settlement because it guaranteed steady stream of amount that gives them peace of mind.
·If claimant has problem managing and proper spending of large sum of money, again structured settlement is good choice for them.
·All the structured settlements are exempted for taxes, if you do any investment by using money received through annuities but all depends upon lawyer.
·Sometime injured party suffers with severe injuries that need permanent medical care and support in the future then periodic payments are suited them best.
Apart from above criteria there can be plenty of scenarios that suites you under given circumstances. You can get counseling from financial adviser that will guide you properly regarding finance matters. Mostly financial devisors attached no string with client, as a result direct you in right direction. Hiring best lawyer in this matter can also be vital, assess your case for all the complexities and advised as per your desires.
People take necessary steps to secure their finances such as structured settlement for annuities. There are many companies in this business that facilitate in this manner, but how would you know which one in best. In order to choosing such companies there are many important factors that should be considered before settling any agreement. It is important that to follow a certain checklist that qualified a company for settlement agreement.
Following are some of many factors that need to be determined while choosing insurance company for annuity:
• The structured settlement company should be licensed, bonded, and insured that will prove its existence.
• The structured settlement company’s goodwill must be verified by pervious client experience or legitimate testimonials. You should consult with their previous client and get to know their views.
• The structured settlement company must be in business for sufficient amount of time. Time can vary but company should be in business for at least 10 years.
• The expected payout time should not be more than 90 days by a structured settlement company. After the court approval mostly companies procrastinated in terms of paying.
• The federal and state laws required to have advance court approval before selling annuities. As a result the first step should be insuring the credibility of buyer or broker and must be taken after lot of consultation and research.
Structured settlement has provision in law that settle any lawsuit or tort claim. In many cases claimant opt for lumps sum amount but most of the time they choose annuities. Compensation in form of annuity requires lot of paper work and court procedures and guarantees you for steady stream of amount. As a result it’s really important that you take every measure to securing this amount. In view of above checklist before hiring any company for annuities give you a peace of mind.
It has been observed that an individual sign an agreement with a company for periodic payments. Afterward that company bankrupted by any means whatsoever ultimately hold your payments. For that reason sound judgment, wise decision, and good contract can eliminate all such fears. Good attorney in this manner can also play a vital role as well, discuss everything with him/her, and ask lot questions before settling any deals. After all this is hard earned money and you don’t want to loss it anyway.
A structured settlement is used to settle the tort claim between claimant and defendant. Generally such claim can be naturalize in either lumps sum cash or periodic payments. Usually periodic payment procedure known as structured settlement and have numerous advantages as well. It is totally tax free, steady flow of money, and suited in various circumstances.
Life with Period Certain or Life Annuity is plan that guarantees a payment of certain amount for number of years or till death. This considers being most efficient agreement because one thing is sure that you will receive money for longer period of time as long as your soul remains intact. Next your beneficiary will receive the amount in case of life expiry. But it’s all up to the lawyer how he brought up the case in front of judge.
Temporary Life Annuity also falls under the structured settlement category and very useful in most cases. This annuity plan pays over designated number of years and ceased upon death. Like Life Annuity there is no provision of being funds received by beneficiary after death. Therefore as long as you alive within assigned number of years this agreement will be valid.
Lump Sum/Life Contingent Lump Sum Annuity is yet another very popular type of structured settlement. Such annuity arrangement setup a lump sum payment that will be paid in near future. Suppose, five years into the future, a date is decided on which you will receive a certain amount. If you are not alive till that date your beneficiary will receive the payment on designated date. On the other hand an annuity with lump sum decided to pay on assigned date with compulsion of life expectancy .In this case your beneficiary will not receive a nickel.
Life Only/Joint Survivor Annuity: Life Only annuities plan pays on monthly basis for life with no beneficiary provision. The beauty of this plan is a hassle free flow of cash till rest of your life. A Joint & Survivor annuity also pay on monthly basis but having the compulsion that if the claimant died in any stage the beneficiary will receive the remaining amount monthly.
All the annuities discussed above designed in view of your needs and circumstances. No matter what best suites you in terms of up-front lump sum payment with monthly payments or for how long you been paid . you should discuss every detail with your lawyer before agreeing on any settlement.
A structured settlement is a special provision under laws to compensate the physical injury tort claim. The sum taken via this channel is exempted from all the taxes .If claimant receive cash as lump sum , immediate year would be tax free and remaining would be subjected to federal and state income tax. While in the settlement process the defendant lawyer should consider such income tax exemptions otherwise the entire burden bear by the claimant.
The option of lumps sum in case of any mishap accepted by some claimants but it has been observed that 90 percent of cash settlements spent within five years. Unfortunately, when the money sanctioned to support an individual having severe injury or disability, that person may be not receive due care and support.
The impact of structured programs on minors is notable as compare to cash lumps sum. If compensation ended in the form of lump sum way then minor will have access to that money by the age of 18, and it’s very vulnerable to handover such amount to immature person. But the investment of the settlements must validated by probate court before handing over to plaintiff. The legitimate investments comprise of annuities, bank CDs, U.S. Treasury obligations and municipal bonds. At this time structured settlements pays back high return after-tax rate. With cash settlement, completing a file work regarding tax is cumbersome and followed each year.
In most cases if the claimant suffers serious injuries and reduce chances of longer life, the structured settlement program have eloquent advantage over lump sum cash. Therefore the life carrier underwriting the structure provides extra monthly financial benefit to overcome the health issues than an individual with normal life expectancy. Numerous life insurance companies are in business these days to evaluate such mortality risk. To obtain a rated age, medical records should be submitted to the underwriters of the companies eventually raise the benefits.
The individual in process of receiving settlement amount, either by periodic payments or through lump sum .when evaluated with claimant other assets, might be exceeded to certain value that would be subjected to income tax. Thus careful planning in this regard can reduce the impact of taxes. Greater the knowledge and understanding of settlement process the better job can do to design a perfect settlement program for claimant.
Next, selecting an insurance company for annuity it should have sound goodwill in the market. It can be verified by various independent sources. Companies covering every aspect from minimum capital to rating certificates must be consider before maturing the structured settlement deal.
Structured settlement is buzzword these days and part of law in our society that help to compensate people in the eve of any mishap. Mostly these settlement forms in shape of annuities, and guarantees a periodic payment to plaintiff for certain time.
At some point down the road an individual want instant cash that force him to sell structured settlements off for lump sum cash. The procedure is not as easy as it seems but involves lot of case study and court approval as well. There are some investment firms those show their willingness to purchase such annuities against hard cash for the seller.
There are number of factors involved why an individual might choose this option:
·Money receiving in small chunks can’t have prompt life changing impact as large sum have. By doing one good investment have possibility to get more amount as compare to the installments.
·You can’t buy a house if you want through sum received by annuities, but selling them makes this dream come true.
·If you have dependants as minors and need to pay their yearly education fee, again annuities failed to play their role.
·To pay the unusual medical bills of your dependant.
The decision in this matter for any individual is vital who made his mind to sell these settlements. He must take a time to weigh all the options to decide that present investment have more worth over sacrificing future arrangements. Get the services of some financial counselor who will assess the case thoroughly bearing in mind all the financial constraints and advice what best suites you. These advisors can also suggest on certain important questions. How much money currently needed by seller? Is this need more important than steady future amount? Is there any alternative to acquire such amount? So be wise in this matter, don’t be hurry, think from all the angles then decide.
After careful analysis by financial advisor, finally point comes to find some buyer. The financial opportunities are interlinked with both buyer and seller, the law doesn’t allow any individual to sell their settlements prior the approval of court. Before choosing any buyer, take all necessary steps to ensure the credibility. In most of the cases buyer goes out of business resulted losing your money. The procedure of selling usually starts with the signing of contract then case brought in front of judge for the final verdict. Once the case get approved it takes 5 to 10 days for funds available.
Purchasing companies buy structured settlement and invest it for their own best interest .They never does it for good gesture to the seller. Making profits are main objective of any investment group. Therefore the amount being paid by the broker can be very less to expectations of the seller. In many cases plenty of hidden charges and fee also impose via contract. No matter what an individual best decides for him, but a perfect contract in this regards can eliminate all the concerns.
