A recent announcement by the Children’s Mutual has stated that the friendly society is planning to move all of it’s savings into it’s Canadian owned rival Forester Life.

This will result in almost 1 million Child Trust Fund holders having their funds transferred across to the rival society without having a say on the matter.

The Children's MutualIt has been rumoured that the Children’s Mutual have been looking for a buyer for quite some time now. It is believed that the cost of running their CTF accounts is unmanageable and the scrapping of the child trust fund by the government compounded their misery as this was their main source of new business.

Formerly known as ‘Tunbridge Wells Equitable Friendly Society’, The Children’s Mutual Society has said to have ‘entered into exclusive negotiations’ with it’s rival Forester Life.

Currently, more than 927,000 customers hold a child trust fund with the society, a majority of them by taking advantage of the government vouchers but there are fears that CTF accounts will perform poorly from now on due to investment providers concentrating on the new Junior ISA Accounts which where launched back in November 2011.

Many people now believe that customers should be able to transfer their Child Trust Fund to a Junior ISA and take advantage of the larger investment options potentially open to them and this news will only strengthen the call of many people and organisations.

However, Forester Life have announced that the takeover should be beneficial for it’s new members as they hope to drive down the cost of managing the funds by economies of scale and it is also worth noting that the money already set aside my the Children’s Mutual for managing the funds would be released to help boost the final or terminal bonus of the Child Trust Fund.

How ever you look at it, surely the coalition government must look more closely at the possibility of allowing CTF holders to transfer child trust fund to a Children’s ISA?

Please note that this article was provided by www.JuniorISAs.org

Life Insurance Premiums To Rise In 2013

The ongoing cost of both health and life insurance could rise by up to 30% in 2013 as a set of newly created tax rules are fully expecting to hit insurance profits.
Life Insurance Premiums Set To Rise
For the first time in over an estimated 10 years, the cost of life insurance is expected to rise significantly.

Because of this, many financial advisors and insurance brokers are advising people that if they need cover then they should buy it before the prices rise.

It has been widely reported that new European legislation which is due to come into force at the end of this year will make it compulsory for all insurers to offer unisex rates on all types of insurance including critical illness cover. This is expected to significantly increase the cost of insurance for women as their premiums are usually less as they are more likely to not die early and therefore make a claim on their insurance policy.

What a lot of people won’t realise is that new tax rules will be rolled out and implemented at the same time which will force up the cost of insurance right across the board and any gains which men might see from potentially cheaper unisex rates will effectively be wiped out by the new tax.

At the moment, UK insurance providers are permitted to offset any costs of their life insurance business against any profits which they have made on their investments. However, during the last budget it was announced that a new legislation was to be introduced which will effectively close down this loophole.

Whilst this may provide more tax for the treasury, it is likely to increase insurance costs for life insurance providers which in turn is expected to be passed on to the consumer.

ISA Deadline Approaching

Well it’s that time of year again when investment providers are tripping over themselves trying to sell their ISAs. The reason being is that this years (2012) ISA deadline is fast approaching (the 5th April 2012).Stocks and Shares ISA

So what does this mean to you?

Well basically, if you didn’t already know, an ISA (Individual Savings Account) is a savings account where you pay no tax on any interest, dividends or bonuses earned from your cash/investment held within the account. Each year you can invest a maximum ammount and if you do not use up this allowance by the 5th April then you will lose it as it cannot be carried over to the next year.

For the tax year 2011/2012 the ISA allowance is:

You can hold both a cash and a stocks and shares isa in the same year should you wish but if you do subscribe to both types of isas then the total combined allowance is £10,680.

A Cash ISA invests in cash which is held within the account. These types of ISAs appeal to many investors as it pays a fixed percentagerate so you know exactly how much your ISA will earn you. However, the downside to investing in cash is that it is vulnerable to the eroding effects that inflation can have.

A Stocks and Shares ISA is where you invest your money into funds and depending upon how well these funds perform will determin how well your ISA will perform. Many stocks & shares providers offer a range of funds with which you can invest in.

For example, Sensible Investments Ltd offer a choice of three different funds which are all managed by Prudential. Their range of actively managed funds include cautious, balanced and adventurous portfolios and depending upon the type of investor you are will determine which fund appeals to you. However, when opening Stocks and Shares ISA account through Sensible Investments Ltd, you can mix your funds. For example, should you invest £10,680, you could place half of your money into the Cautious fund and split the other half between the two other funds like below:

£10,640 total investments in a Sensible Investments Ltd Stocks and Shares ISA

  • 50% (£5,340) into Prudentials Cautious Fund
  • 25% (£2,670) into Prudentials Balanced Fund
  • 25% (£2,670) into Prudentials Adventurous Fund

By splitting your investment into different funds helps spread the risk and you can change your subscriptions at any time (if one fund performs particularly well then you could pool all your money into that fund to try and maximise performance).

For further details about Sensible Investments Ltd range of ISAs please visit their dedicated stocks and shares isa site at www.stocksandsharesisa.org.uk

Junior ISA Update

Since the Junior ISA was officially launched in November 2011 we have seen a steady flow of providers offering their own version of the investment. It seems that the stocks and shares Junior ISA is a much more popular product than its cash version and this is reflected in the amount of providers offering a stocks and shares version when compared to the amount of providers offering a cash version.

The stand out providers are ‘The Children’s ISA Ltd’, ‘Family Investments’, ‘TaxFreeJuniorISA.co.uk’, ‘The Children’s Mutual’, ‘Jump’ and ‘Scottish Friendly’.
Junior ISA

A lot of providers offer very similar accounts but your money goes into different fund(s) dependent upon the provider. The government have also confirmed that you cannot transfer a child trust fund to junior isa which many parents feel is unfair as they feel that their children are now stuck in an unsupported and inferior investment.

There are also some Junior ISA comparison sites cropping up with www.juniorisaproviders.org being the most notable one. Here you can compare many different Junior ISAs from a wide range of the UKs leading providers.

Tax Free Junior ISA

The UK coalition government has annouced plans to introduce a new ISA for children know as a ‘Junior ISA’.

This will replace the ‘Child Trust Fund’ and is to encourage parents to help their children save for their future.
Parents will be able to pay in a capped amount each year which can either be cash, stocks or shares just like with a normal adult ISA (Individual Savings Account) and the child will not be able to receive the funds until they reach adulthood.

It is predicted that education costs such as going to university and also house prices are to continue rising so it is important to help your child to have some savings which can then go towards their university fee’s or help them onto the property ladder.

Unlike the Child Trust Fund, the government will not be making any contributions towards any Junior ISA accounts which has resulted in complaints from many people.
It is believed that only weather families will be able to afford it whilst lower income families will be excluded.

The government is expecting to save around half a billion pounds by scrapping the Child Trust Fund in favour of a tax free junior isa

Critical illness insurance

With the population now living longer than ever before, we find that many of us will suffer from or be diagnosed with a critical illness at some point in our lives and with the advances of medical science, more and more of us are now surviving these illnesses.

This is where Critical illness insurance becomes important because where life insurance covers you in case you die, it will not cover you should you have a heart attack, stoke, brain tumor or be diagnosed with cancer for example and survive. These illnesses can severely compromise your income and may force you out of work and remove your income all together.

With a critical illness cover policy in place, you will receive a lump payment to settle any debts, mortgage etc and should you need any modifications applying to your home such as a stair lift etc then this can also be funded by your policy.

The best way to obtain your critical illness insurance quotes are through an independent online insurance broker such as www.insuranet.co.uk

Many life insurance policies have the option of Critical illness cover at little extra cost so this is always worth considering when shopping for life insurance and if you already have a life insurance policy than you should enquire about critical illness insurance as you may be able to simply add it to your existing life insurance policy.

Military insurance for the armed forces

If you are employed by the UK’s armed forces, whether its the Army, Navy, RAF or Royal Marines then you can obtain life insurance quotes through Insuranet.co.uk which will offer you great coverage.

Should you pass away unexpectedly, then having a Military insurance policy will protect your family. Income insurance will enable you to continue with your bills and other expenses should you be unable to work or loose your job and Critical illness insurance will help you continue financially should you die from or be diagnosed with a critical illness.

Your occupation can be quite important when it comes to getting life insurance and specialist military insurance is perfect for those of you who serve in the UK’s armed forces. It doesn’t matter if you are right on the frontline or even sat behind a desk, Having military insurance will offer you the knowledge that should the unexpected happen then your family will be protected financially.

To compare armed forces life insurance quotes please click the following link:  Military Insurance for the Armed Forces

Income Protection Insurance

Looking after your monthly or weekly income and protecting it so that you can continue to pay your financial out goings, bills and supporting your family is of paramount importance.

But what should happen should you no longer be able to work? What if you are involved in an accident or become sick?

Having Income Insurance will ensure that you can continue to pay your bills and expenses should the unforeseen happen.

Income insurance will continue to pay you a monthly income and should help you avoid loosing your house, car, lifestyle etc.

You do have to be careful when shopping for Income protection insurance and make sure that you do not under cover yourself. It can be very frustrating to be paying for your insurance for a long time and then if you do happen to make a claim you soon discover that it does not cover enough of your financial obligations.

Like most other products and services, the best way to find cheap income insurance is to shop around.
Here at Insuranet.co.uk we can do the shopping around for you to find some great income insurance quotes for you to save you time.

We will compare quotes from a large range of UK insurance providers to help find you the most suitable policies.

Loosing your income can be scary at most times but especially so if you have other people dependent upon you and your income such as a partner or children. This can involve a lot of pressure and you may face real difficulties in continuing to pay your bills and the mortgage etc.

Having an income insurance policy in place can remove all that stress and worry should the unfortunate happen. It will pay out a monthly tax free income which is usually a percentage of your regular working income and can be used to pay for your finances such as a mortgage, car finance, loans, bills etc.

Over 50 Life Insurance

Over 50 life insuranceNot so long ago, 50 years of age used to be considered old and was regarded as a milestone age but that is simply not the case  now days.

As we are generally living longer and healthier lifestyles, being 50 is still classed as being middle aged to most people and because of this you can now find some great rates on over 50 insurance.
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It doesn’t matter how well your life is running or how healthy you currently are as there is always the unexpected awaiting around the corner for many of us. Even in the current financial and employment climate it seems that there are not many safe occupations to have nowadays which aren’t in danger of  redundancies. Because of this uncertainty, it is always a good idea to protect yourself with an insurance policy.

An insurance policy will protect you and your family should you die unexpectedly, lose your job, become sick or even get injured. There are many different type of insurance available and Accident Sickness and Unemployment cover is one of the most important ones you can have.
Should you become sick, injured or be made redundant, could your family still afford to live and pay the bills without your income?

Whilst this can be worrying for many people, with a ASU Cover in place, the worry can be kept to a minimum and should something happen, you can concentrate on getting better / getting a new job whilst still receiving an income to help cover the expenses.

Accident, Sickness & Unemployment insurance has helped many people in the past and it could also help you too. It is important that when purchasing insurance such as ASU cover via a website or internet you should still speak to one of their advisors. Buying your insurance online on a none advised basis can be very risky as you increase the possibility of purchasing a policy which is unsuitable for you and wasting a lot of money on it.

With www.insuranet.co.uk you will speak to a fully qualified and FSA regulated advisor to insure that any advice given will be of sound nature, unbiased and independent. You will speak to a friendly professional who has many years experience within the life insurance industry and will be able to carefully guide you through the application process and will also make sure that the policy you buy is actually suitable for you.

All our advisors are exactly that, ‘Advisors’  and not ‘Sales people’ so there will be no hard sell and you are never at any point under any obligation to purchase. Let’s not also forget that any advice you receive will be free of charge.

Taking into account when to purchase Accident insurance is also an important factor. If you are young and healthy then you will find you can purchase your policy much cheaper and could find a really great deal. So always bear this in mind as even if you are young and healthy, you never know what might happen tomorrow and things could deteriate very rapidly so it would be much better for yourself and your family to be protected with ASU cover.