Happy Easter to one and all and I hope 2007 is shaping up nicely for you. Now the clocks have gone forward we can start looking forward to our well-deserved holidays, summery evenings and ripe strawberries and cream!
Meanwhile, the tax year-end is a very busy and interesting time for us and our clients. My client Colin is needing to maximise his tax-free savings entitlement by making good use of his ISA allowance. Not before time, in my view, has the Chancellor seen fit to increase this. His recent budget announcement gives us all a further allowance of £200 per year, although regrettably not available until the 2008/09 tax-year.
Bigger changes are afoot in the financial protection arena, particular with regard to illness insurance. Many people are familiar with Critical Illness Cover (CIC), which is designed to pay out a lump sum following diagnosis of one of a number of serious illnesses or medical conditions.
However, improvements in medical care and research are moving the goalposts and affecting payouts. CIC is evolving, and not to everybody's liking. Illnesses such as early-stage breast and prostate cancer are considered much more treatable than a decade ago and are now excluded from many CIC policies. As medical science progresses, more such exclusions are likely, leading to more confusion.
I recommended Mark, a client of mine, a new type of cover which is 'severity-based'. This type of insurance covers a wider variety of medical conditions than with CIC, and the payout can vary, depending on how serious the condition is. This policy could potentially pay several lump sums, should Mark experience either more than one illness, or an original illness become more severe.
This type of insurance was introduced in South Africa several years ago, and has proved very popular out there. A couple of the UK's more forward-thinking insurers have now made severity-based cover available in the UK. It won't be suitable for everyone, and CIC still has its place. Don't forget that Income Protection, in combination with CIC, forms the foundation of a sensible financial plan for most people.
You can be sure that at Ascot Lloyd we keep a close eye on new developments such as severity-based cover and will always tailor a solution to your individual needs. Please accept my best Springtime wishes on behalf of us all at Ascot Lloyd, and
do look out for my next blog entry, coming soon.....
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