With Profit Endowment policy holders see reduced annual bonuses

Recently, many of the UK's leading insurance companies announced reduced annual bonuses for With Profit Endowment policy holders, yet another blow for homeowners who took out endowments during the 1980s and 1990s, as they will now see increased shortfalls on their mortgage liabilities.

Some of the big names that have declared reduced annual bonuses are Scottish Widows, Friends Provident, Norwich Union and Scottish Life, while some have bucked the trend, and increased payouts - these include Standard Life, Prudential and Legal and General. But unfortunately for many endowment policy holders, payouts are down.

Annual bonus declarations vary from insurance company to insurance company because they are influenced by a number of factors, which include past investment performance, previous bonus announcements and the financial strength of the company.

For example, those who have policies with Scottish Widows, Friends Provident, Norwich Union and Scottish Life will see reduced annual bonuses in 2008 compared with the previous year. Based on a male policy holder with a 25 year endowment policy who was aged 30 when he took out the policy paying £50 per month, a Scottish Widows endowment would see a reduction of £442 between 2007 and 2008. A Friends Provident policy would see a payout of £37,540 in 2007 reduced to £36,425 in 2008, Norwich Union's payout would decrease by £2,776 and a Scottish Life policy would decrease by more than 8 per cent - from £37,132 in 2007 to £34,196 in 2008.

Where a policyholders' endowment continues to under-perform, the insurance company should write to them, warning them of the potential shortfall. However, there are things that can be done to address this potential shortfall before it is too late.

Make a complaint - Many endowment policy holders have successfully won complaints cases against insurance companies because they say the potential risks of endowment were not explained properly to them when they took the policy out. The FSA has more information about endowment complaints.

Surrender - Because of the bad press that endowments have received over the last 10 years or so, many policyholders are trying to get rid of them, and will often just settle for the surrender value offered to them in the hope of cutting their losses and getting back cash.

Sell - There is now a fairly healthy secondhand market for endowments and those who have sold their endowment policy on to an investor have found that they got a lot more than they would have if they had settled for the surrender value - up to 45% in some cases. The reason is, potential investors see endowments as an attractive investment, due to relatively low risk investment strategy and partially guaranteed return.

But the best advice is to get advice; if you are uncertain about what to do, seek independent advice from a specialist.

Florida Homeowner's Insurance: Top Ten Ways to Save

Homeowner's insurance may soon be increasing for Florida residents—and even more for those living in the southern part of the state. This is the ideal time to check your policy and your home to see if you can cut your costs and make up for the rates hike.

Your Policy

1. One of the simplest ways to decrease your insurance premiums is to increase your deductible. This is true of most types of insurance, but few pay off as much as increasing the deductible on your home. Increase it to $2,500 and you could save hundreds of dollars every year.

2. If you're looking at getting a new policy, ignore the new trend for online insurance shopping. In locations that are subject to special weather conditions, there called hurricanes in Florida, it's always best to shop locally. Work with a local agent who deals with multiple carriers, and you'll benefit by having an agent who does the shopping for you and can help you choose the best deal from among several carriers.

3. Choose an A-rated, admitted carrier. An A-rated carrier is more likely to remain financially stable in tough times, and an admitted carrier has state-approved rates and is covered by Florida's Guarantee Fund. Both of these factors mean more security for your policy.

4. Ask your agent about their carrier's renewal processing process, and find out if they requote the policy each year. Choose an agent that does requote every time renewal comes up to make sure you always have the best coverage at the best price.

Your Home

5. If your Florida home was built before 2002, having it surveyed for wind mitigation factors could save you hundreds of dollars every year. This kind of survey documents design features in your home—such as FBC shingles and reinforced garage doors—that help it resist damage in high winds. In most cases you'll save enough in the first year alone to cover the cost of the survey.

6. Storm damage is a big factor in Florida insurance rates, and one way in which you can keep your rates low is by owning a home with a hip roof rather than a gable roof. This type of roof diverts wind better than a gable roof does, and puts less strain on the house during high winds.

7. Make sure your home is within five miles of a fire station, and within 1,000 feet of a fire hydrant. If it's too far away from either of these things, you may have to buy your insurance from Citizens, Florida's state run insurance carrier, and means paying top dollar. As in the case of the hip roof, this tip might not help if you already own a home and plan to stay there long-term. However, if you're looking to relocate it's something to keep in mind.

8. Have your alarm system monitored. Overall you might not save money, but it more or less allows you to improve your home's security for free, or close to it, as the amount you save on your insurance will typically cover the cost of having your alarm monitored.

9. If you have a diving board, a trampoline, or a dog of a dangerous breed, you'll pay dearly for it with your insurance carrier. You may even find that conventional carriers aren't interested in insuring you, and that means getting insurance from Citizens. You may not want to give up a much-loved family pet, but there's no harm in questioning how much you really need a diving board.

10. Owning a property of five or more acres increases your insurance costs. In most cases you'll need to buy a policy from a specialized carrier, which naturally costs more. However, if you don't mind reducing your property a little, you can sell off an acre or two and reduce your premiums at the same time—reduce your land parcel to four acres or less and you'll be able to shop around and reduce your costs.

The benefits of health insurance for specific conditions

Comprehensive private medical insurance plans can be expensive; but if you are one of those people who are on a budget, there are other ways to protect yourself should the unexpected happen. For instance, some health insurance providers offer lower cost plans that just cover specified conditions.

Cancer, heart disease and stroke are common conditions which can be covered by specific condition insurance plans. These plans could be very helpful if you consider that one in three people will be affected by cancer at some stage in their lives1. While cardiovascular disease (CVD) caused 39% of deaths in the UK in 20022 and an estimated 150,000 people have a stroke in the UK each year3.

Some health insurers have chosen to offer a private medical insurance plan that provides protection specifically for these three conditions; and based on the statistics presented above, you can see why this plan could be so important. You could be covered against the UK's three biggest killers - even if you cannot afford a full private medical insurance plan. If you ever need to call upon the plan, you can be confident that you would have cover for early diagnosis and treatment in private hospital facilities for these conditions. Furthermore, these plans often include access to a helpline where you can obtain health information or counselling.

Health insurers may also offer plans that cover cancer and heart disease only; but in light of new cancer drugs such as 'Avastin' and the fact that sometimes these drugs are not readily available on the NHS, some insurers have been prompted to offer cancer-only health insurance plans. There are a variety of cancer plan options in the market depending on your needs.

Some health insurance plans provide cash lump sum payments if you are diagnosed with cancer. These plans generally allow you to spend the money as you wish - perhaps towards the cost of childcare or even for someone to clean your house while you are in hospital. There are often other benefits included such as monthly income payments up to a certain number of months and hospital cash payments up to a certain amount of nights. Sometimes these plans can be gender specific, targeting only certain types of cancer (e.g. ovarian etc. for women). Although receiving a cash payment might help during this time, you may find that it does not go very far.

Other cancer plans offer cover for treatment only and are aimed at bridging the NHS gaps. For example, offering cover for certain licensed drugs and their administration. Treatment only plans have their benefits, but their usefulness may depend on where you live. If you live in an area where cancer drugs are available to all and patient waiting times are being met, they may not be as relevant to you.

Alternatively, if you wanted even greater protection against the cost of dealing with cancer, some health insurers are offering cancer plans that provide comprehensive private cover.

Because the cover available on health insurance plans for specific conditions is limited to the condition or conditions specified, premiums tend to be much lower than that of a traditional, full private medical insurance plan. So, if you are keen to have health cover of some sort, but have not considered purchasing full private medical insurance because it is too expensive or it doesn't entirely suit your needs, a specific condition health plan - whether it covers the UK's three biggest killers or cancer only - might be just what the doctor ordered.

The benefits of personal accident insurance

Most people think that they will be lucky enough not to fall victim to an accident. But the truth is that accidents can and do happen to anybody at anytime - usually when least expected. For example, did you know that in the UK every year 2.7 million people turn up at hospital accident and emergency departments seeking treatment because of an accident at home. Or that almost 4,000 people die each year in accidents at home*?

If you are unlucky enough to have an accident that results in a serious injury, you may not be able to return to work quickly. And, if you have to take an extended leave of absence from work, your income could suffer greatly. The good news is that personal accident plans can offer tax free, lump sum cash payments to help you out financially - if you've suffered from a loss of income or in some other way - should the unexpected happen.

Many insurers offer standalone personal accident insurance policies; however, limited personal accident cover is also often included in motor and travel insurance policies. The benefits of standalone policies is that the cash payments are larger and there are usually fewer restrictions. For example, if the cover is under your travel insurance, the accident must have occurred whilst travelling.

Personal accident plans usually provide cover for a range of injuries arising from accidents, including permanent disablement. This could include, but is not limited to, quadriplegia, paraplegia, total and permanent loss of use of one or two limbs and complete and irreversible loss of sight in one or both eyes. Some plans will also provide cover for fractures, dislocations and even burns.

Furthermore, if you have to spend time in hospital after an accident, some plans will also provide cash benefits for hospitalisation as well. If an accident resulted in one of the above injuries, the cash payments could be used towards the cost of replacing your lost income through to the cost of a holiday to aid in your recuperation.

Most accident plans will also include an accidental death benefit providing a generous cash lump sum to your estate in the event of death caused by an accident, while plans only offering accidental death benefits are also available. The amount paid can vary and often plans will have different levels of cover. Some plans even pay out differently depending on the circumstances of the accident (i.e. accidental death as a result of a road traffic accident). Cash payments with this cover can help your family with the often unexpected financial burdens brought about from such things as a loss of income, funeral expenses and even to cover the potential impact on your loved ones' incomes during bereavement.

Innovation has played a part in the personal accident market with insurers targeting specific groups of people with different versions of personal accident plans ). For example, as slips and trips are more common amongst individuals aged 60+, one insurer has offered affordable cover for fractures and dislocations as a result of accidents, with multipliers if injury is caused as a result of a personal assault. If you fit into this age group and took out this cover, you could find the cash payment particularly useful if your accident resulted in a hip fracture that may severely restrict mobility. What's more, with hip fractures generally having long waiting lists in the NHS, the same insurer even offers a choice of a cash payment or immediate private hospital treatment for the injury - the choice is yours.

Children can also usually be covered on personal accident plans but often they only receive a portion of the adult benefit (i.e. 50% of adult benefit). Some personal accident plans also provide telephone helplines for you to call upon should you need support during such a difficult time. And, the standalone plans are relatively low-cost starting from around £5 a month for a single policy.

There is no denying the fact that anyone can be a victim of a personal accident and the financial after effects could, in turn, be great. But luckily, there are low-cost personal accident plans available to provide you with real peace of mind - whether you choose a comprehensive personal accident plan or an accidental death cover plan.

Life insurance: Don't Fear the Reaper

The most common reasons to take out a life insurance policy are:

Mortgage payments
If you have an outstanding balance on your home, a life insurance policy could take care of this, ensuring your family won't be made homeless, thus adding to the grief.

Income replacement
If you are the main wage earner, a life insurance policy could replace the income you would otherwise have made, avoiding financial hardship for your family.

Childcare support
If your partner is left alone with small children, life insurance can provide the money to pay for necessary childcare.

Education
A life assurance policy can help provide the fees for your child's education at school or university.

There are as many different types of life cover as there are reasons to have it. It can be confusing, so if you're unsure about which would suit you it's best to compare different policies and seek further advice before deciding. Here's a summary of the most common types of policy:

Level Term Assurance
This type of policy is taken over a fixed term and pays out a lump sum if the policy holder dies during that term. The sum payable remains guaranteed throughout.

Decreasing Term Insurance
Similar to Level Term in that the policy is over a fixed length of time, but the sum decreases over the duration of the policy. Commonly used to protect mortgage interest repayments.

Convertible Term Assurance
The same as Level Term, but with an option to convert to a Whole of Life or Endowment insurance policy.

Whole of Life Insurance
Guarantees a lump sum on the policy holder's death, provided payments are maintained. Does not run out, and premiums are fixed for the first ten years.

Endowment Life Insurance
This type of policy takes your premiums and invests them in the stock market, and pays out the returns upon the end of the term or the death of the policy holder, whichever comes first. It can be a tremendous asset to someone who understands stocks and shares.

Family Income Insurance
As the name suggests, this policy will help out widows or widowers with a family to support. Rather than a single lump sum, this policy pays out the sum in the form of regular monthly payments. Payments last for however long is left on the term at the time of death.

Some life insurance policies come with additional benefits such as critical illness cover; a sum is payable should you be diagnosed with certain illnesses like kidney failure, cancer or Parkinson's Disease. You may also be offered a waiver of premiums; a form of PPI which will continue to pay your premiums if you cannot work for health reasons.

As with all insurance policies, life insurance should not be rushed into. It's important to understand exactly what you're signing and paying for, and any exclusions which may apply. Some policies will not result in a payout if death occurs due to a pre-existing condition, or one which was known about and not declared when the policy was taken out. Others refuse to pay out for deaths caused by undertaking dangerous activities such as extreme sports.

Protect your family with a life insurance policy. Taking out a Level Term Assurance or even a Whole of Life Assurance policy can help your nearest and dearest through the hardest times.

Insurance for the Big Boys: Block of Flats Coverage

Even if you already own a block of flats, you may not necessarily have considered the most appropriate form of insurance to protect your interests and those of other interested parties, such as the leaseholders and their mortgage lenders. If you are new to the sector, there will be many areas that you need to think about before making any decisions about insuring your property.

Surely, buildings insurance is buildings insurance, isn't it? Well actually, the answer is 'not really'. Different needs arise when looking at 'non-standard' property and, in this case, blocks of purpose-built flats are quite unlike houses that have been converted or, indeed, ordinary homes.

This is because while the basics of cover are the same, insurance companies view the 'risk' differently - partly because the property may be built differently, or occupied by more than one family. If your insurance is not the right sort, you could find yourself with unpaid - or incompletely met - claims.

As the owner of a block of flats it can make sense for you to have ultimate control of the insurance, rather than leaving it to the leaseholders or tenants to do so. This is partly so that you can make sure cover is correct, but also so that there can be no debate over whether all parts of the building are covered. After all, if each flat were to be individually insured, questions could arise regarding whether the shared areas are insured.

Don't skimp on blocks of flats insurance; looking for the 'cheapest' insurance is almost always the wrong thing to do. Nobody wants to pay more than they need to for something that they hope will never happen; but it is important to be sure that your blocks of flats insurance will be there to pay out if necessary. If insurance companies fully understand the nature of the property they are covering, they will be more inclined to charge a fair premium, and to pay claims promptly should the need arise. And remember, it is not just you that could suffer if things go wrong. Other interested parties could well seek to take legal action against you if the insurance you have arranged fails to pay out and they are left without recourse to insurance.

Arranging blocks of flats insurance is not the same as insuring your own home; there are additional considerations. Ideally, you should seek professional advice from an insurance broker who has experience of the sector, as a result of already working with managing agents, residents associations and property owners. It is also important to ensure that you have access to additional, complementary forms of insurance such as Directors and Officers liability cover that can protect the interests of those running the management company.

So, when considering how to insure a block of flats, do your research, don't skimp and choose a reputable insurer who has experience and knowledge in this particular area of property.

Flooded With Claims: Insurance companies feel the strain

A recent report from Datamonitor has recorded the plight of UK household insurers, which it claims have incurred more than £300 million in losses following the terrible floods last summer. This compares with profits of £167 million in 2006. However, with damage from the June and July floods setting household insurers back approximately £3 billion, total costs for the year - including theft, fire and subsidence claims - are said to have passed the £4 billion mark.

"The summer floods of 2007 will hit UK insurers hard, leaving them with an estimated loss of over £300 million on their combined household accounts," says Mahreen Hussein, financial services analyst at Datamonitor.

However, while the report highlights the financial losses of the home insurance providers, victims of the summer floods have been left to count the cost of the devastation wreaked by the freak storms; as thousands of residents sustained extensive damage to their homes, lost cherished - sometimes irreplaceable - contents and were forced into 'temporary' accommodation, often for an extended period of time.

While the report indicates that household insurers will return to profitability in 2008, these homeowners will remember the impact of the torrents for a long time to come.

But, while those with comprehensive home insurance policies will have been recompensed for damage to their property and household contents, no amount of compensation can recompense for lost items of sentimental value, and those without any form of home insurance policy have found themselves severely punished, with little or no means to replace what has been lost.

Approximately five million UK households are at risk from flooding, and new housing planned by the Government is likely to increase this number as many new homes are set to be built on flood plains, which may make future homes not only uninsurable, but also unsaleable and ultimately uninhabitable.

However, those who believe they will never experience flooding or other hazard should think again; along with theft, fire, subsidence and other potential hazards which could befall a home, the risk of flooding is ever-present. It is estimated that around 37 per cent of people - most notably those in rented accommodation - do not have home contents insurance as they see it as a non-essential expense. However, the cost for many would be insurmountable should their home be breached in some way.

So, how do you protect your home and possessions from the forces of nature?

First, try to avoid buying or renting in an area that is prone to flooding. Second, make sure that your home insurance policy covers all the common hazards in case of extreme weather or other damage such as subsistence or land-slip. Also ensure that any contents insurance provides a sufficient level of cover to repair or replace your damaged items. Also, if you own a car it is worth checking that your car insurance policy caters for flood damage.

Most importantly, compare policy details and prices before you buy. More people are now opting to buy their insurance online, particularly through comparison websites which allow people to compare insurance deals without having to visit each insurer's site individually; meaning that arranging suitable cover can be done quickly and easy and affording peace of mind in a few clicks.

Scaffolding Insurance and Other Programs can Protect Against Rental Equipment Mishaps

Whether you are a scaffolding rental company or you're a laborer responsible for renting scaffolding for job sites, it's imperative that you purchase comprehensive insurance packages. No matter how secure we like to think our job sites are, or how confident we are in the products we own or rent, mishaps can - and do - occur.

For scaffolding rental companies

If your business is scaffold rental equipment, you must ensure that you have consulted with an expert scaffolding insurance broker or agent to arrive at the best possible coverage decisions for your company. There are many risks inherent to renting scaffolding. Scaffolding can collapse, resulting in third-party injuries or even deaths. More likely, , stands a decent chance of being vandalized or stolen at a construction site.

Liability insurance is an essential part of a scaffold company's insurance coverage. This type of insurance protects your company in the event that a third party on or near your jobsite (not a construction or jobsite worker - he or she is covered by worker's comp) is injured or killed because of your scaffolding. If this happens, your company might be sued for negligence. Liability insurance protects your business against claims alleging that the scaffolding you rent out or erect is responsible for injuries to non-worker individuals on or near jobsites.

Equipment and property insurance are also necessary for scaffolding companies. These coverage packages protect your scaffolding business from financial ruin in the event that equipment is stolen, or is otherwise damaged at a jobsite. Some brokers offer property insurance in a combination package with casualty insurance, a more generalized coverage policy protecting the business from financial loss. For many scaffolding companies, a property-casualty combined package is the wisest investment.

Insurance against business interruption is a third essential type of insurance coverage necessary for scaffolding companies. Should your business be detained from operating, it will be protected against income loss.

Scaffolding Workers

If your workers use scaffolding to perform daily tasks, you will need to make sure they are covered under several different types of insurance policies, as well. Your employees can be injured while using the scaffolding. The scaffolding might be faulty or might have been assembled improperly - or, your employees might become injured because of horseplay or improper work practices.

Every business is required by law to have a workers' compensation insurance package, but this is especially important for construction businesses and other firms that use scaffolding. If one of your employees is injured as a result of scaffolding, he or she can sue you for damages without a proper worker's compensation package in place. Rather than tying your business up with the legal system, buy the best workers' compensation package you can afford.

Choosing an insurance provider: Agents are different than insurance brokers

If you operate a large business or one with many risks, you should use an insurance broker. Brokers have extensive experience and training in insurance policies, and are most likely able to help you choose the insurance package or packages that will suit your needs. By contrast, an insurance agent can help facilitate negotiations between your business and the insurance company he or she represents, but generally cannot offer solutions that are as finely tailored to your needs.

Whether you erect scaffolding, or run a business that rents scaffolding, make sure you purchase the insurance programs and coverages that will suit the needs and risks of your business. An experienced insurance broker can help lead the way to better coverage for all businesses and employees working with scaffolding.