The age of an individual has always been an issue when it comes to insurance. Yet, it seems that with the spotlight currently firmly on the industry as it finds itself at the heart of the economic crisis (at the same time striving to assure customers that cover is no less relevant and affordable), a wave of criticism regarding age discrimination by insurers has been seen in the media. So are we being discriminated against by insurance companies?
One of the issues that can be seen to hinder the trustworthiness of these discrimination claims is the fact that they seem to have been borne from the work of comparison websites. Without mentioning any comparison site specifically here (and I endorse the usefulness of such services), reports at moneynews.co.uk state of one site’s research which found “that young drivers pay more for their insurance”. (This is in April 2009 under the headline: Car Insurance Industry Rife with Discrimination.)
The first problem here is that this is nothing new: 17 and 18 year-old drivers have had to pay expensive premiums for car insurance cover for years now, and the shocker is that this is still increasing (as are most policies). I acknowledge, also, that a 17 year-old girl must pay 58 percent more than her 18 year-old friend – and this is alarming.
However, I do think we need to understand two things. The first is the process by which car insurance premiums are calculated for individuals with no or minimal driving background. Other than their peer group, where else can insurance companies look in order to ascertain the risk and its subsequent monetary equivalent? The second thing to remember is when the implied (or sometimes, outright stated) answer to a newsworthy issue is to compare quotes from different companies, possibly via a very hand comparison site, then such “reports” are likely to be biased.
That said, in a separate report at the same site (and with research carried about by the same comparison website), a more unfair and less justifiable trend has emerged in the travel insurance sector.
The report, Travel Insurance Prices ‘Hiked Overnight’, states that a 66 year-old individual will pay an average of 106 percent more for a policy than a 65 year-old – a difference that is far more extreme, and which doesn’t appear to need to depend so much on a general peer risk assessment when an individual medical report and the risk of destination can be taken into account. I suppose the lesson here is to keep an eye on your policies with the same fervour you question your information sources.
Home Insurance Fraud: Don’t Be Lured to the Darkside
When the going gets tough, the tough sometimes get fraudulent. Recent figures released by the ABI (Association of British Insurers) have shown a record level of fraudulent insurance claims, proving people are willing to use their insurance policies as a way of bringing in extra cash. According to statistics, 2000 fraudulent claims are made every week, amounting to an estimated value of £14 million.
What is insurance fraud?
If you make an insurance claim for something that either hasn’t happened, or you know to be wrong, you’re committing insurance fraud.
How much fraud is there?
The most common form of fraudulent claims is for home insurance - 55,400 frauds were detected last year at an estimated value of £110 million.
Why are there so many claims?
There are more opportunities for fraudulent home insurance claims than for any other class of insurance.
Car insurance fraud, for example, requires a little planning to orchestrate a convincing accident or theft. However, spilling paint on your sofa in order to get a new three-piece suite, is much easier.
Who’s guilty of insurance fraud?
A YouGov survey of 3000 adults, showed one-in-five admitted they’d be tempted to cheat on their insurance - despite the likelihood of getting caught.
But if you think cheating’s a quick way to boost your bank account, think again – the insurance inspectors will be after you!
The crackdown on fraudsters
“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” says Nick Starling, ABI’s Director of General Insurance and Health, on the ABI website.
Claimants may have to provide minute detail, and may even find forensic experts getting involved, all in an effort to stem the tide of fraudulent claims. And if found out, fraudsters may be blacklisted by insurers, or may even gain a criminal record.
Fraud makes home insurance more expensive
Cracking down also prevents honest policyholders paying the price.
“Fraud adds an extra £40 a year to the average premium,” says Starling, “which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”
For more information on home cover, read Confused.com’s Home Insurance Buyer’s Guide.
How to Cope if you Lose Your Job - A Survival Guide to Redundancy
Tips and advice on how to deal with being made redundant
The dreaded ‘R’ word. It’s one you hope never to hear. But, worryingly, redundancies have been on the increase ever since the economy took a tumble.
The current economic climate has forced many companies to close and put many jobs under threat. Employers often resort to making staff redundant as a way of cutting costs. Implementation of new technology/systems or a workplace relocation can also deem a job redundant.
Who can be made redundant?
• Any employee under contract of employment – written, verbal or a combination. Just turning up to work constitutes an agreement of employment.
Who is eligible for a redundancy payout?
To be eligible for a payment, you should meet all of the following criteria.
• You need to have been in continuous employment for at least two years.
• You are over the age of 20 at the time of dismissal.
• You have been dismissed by reason of redundancy.
What are your entitlements?
Unless a more generous settlement is written into your employment contract, you will receive only the statutory minimum redundancy pay. This is based on how long you’ve been employed, your age and your weekly pay.
Statutory Minimum Redundancy Pay
The amount is calculated as:
• Aged 41 or over - One and a half weeks’ pay for every full year
• Aged 22-41 - One week’s pay for every full year
• Aged 18-22 - half a week's gross pay for each year worked (as long as you worked in the same job beyond the age of 20).
If your employer doesn’t give you redundancy pay when you’re entitled to it, you should write to them asking for payment. If your employer still refuses to pay or cannot make the payment, you could make an appeal to an Employment Tribunal.
Note: The 2009 budget announced that the weekly rate of statutory redundancy pay will increase to £380.
Resource: The Advice Centre
Tips for dealing with redundancy
Budget: Draw up a comprehensive plan of your out-goings. Where can you save money and how can you make best use of your cash? Speak to a financial advisor if necessary.
Claim your benefits: Depending on your savings and record of National Insurance contributions, you may be entitled to state benefits. Make an appointment with your local benefits office to find out more.
Invest: If you’re lucky enough to receive a substantial payout, think carefully about what to do with the money. You could pay off debts, or put it in a higher-interest savings account or ISA. Again, consider speaking to a financial advisor if necessary.
PPI: If you’re still employed and worried about the future of your job, you might consider getting payment protection insurance (PPI)? This could help pay a proportion of your monthly bills and offer support for a fixed period while you hunt for a new job.
Source: How to Cope if you Lose your Job
The 6 Big Reasons to Switch Energy Providers
Now that all of the ‘big six’ energy companies have cut their prices, here are six reasons why right now could be a great time to switch.
nPower’s recent energy rate cut – 7.5% for electricity customers – means that all the major UK suppliers have dropped their prices since the start of 2009. So if you’re with nPower, British Gas, EDF, E.ON, ScottishPower, or Scottish & Southern then your bills could be about to drop – but only if you’re on the right tariff.
Finding a cheaper tariff is easy these days with the energy comparison sites. Enter a few details into simple online forms and you’ll see all your local energy options appear onscreen within seconds. And if like most energy customers you haven’t switched in a while, there’s a very good chance you can slash your energy bills by even more than the announced cuts.
For many, the chance to save up to £252* on their gas and electricity bill is all the reason they need to switch energy provider, but just in case one reason’s not enough, here are…
1. Save up to £252*
nPower, British Gas, EDF, E.ON, ScottishPower and Scottish & Southern have announced rate cuts, but some have cut more than others. Therefore, even if you're with one of these providers you could save even more by switching.
2. Lower your standards
If you're on a standard tariff then you're almost certainly paying too much. Don't believe us? Then compare energy prices right now to see what you could be paying.
3. Get online!
You could further increase savings by signing up to an online tariff. Posting bills and waiting for cheques to clear costs energy providers time and money, and they're willing to offer discounts if you agree to paperless billing and paying by direct debit.
4. Colder weather = more savings
Summer is still a way off, and as people use more energy during the colder months, switching to a cheaper tariff now means you'll save even more.
5. FREE smart meter
If you switch to a First:Utility tariff, they’ll install a smart meter for free. Ofgem want to have a smart meter in every household by 2020, so here’s your chance to beat the deadline by a dozen years. Plus, monitoring your energy consumption more closely means you could save as much as 15%** off future bills.
So now you’ve read our big six reasons to switch energy supplier, you’ll probably want to get straight to it, in which case, just follow the link below to see how much you could save.
nPower’s recent energy rate cut – 7.5% for electricity customers – means that all the major UK suppliers have dropped their prices since the start of 2009. So if you’re with nPower, British Gas, EDF, E.ON, ScottishPower, or Scottish & Southern then your bills could be about to drop – but only if you’re on the right tariff.
Finding a cheaper tariff is easy these days with the energy comparison sites. Enter a few details into simple online forms and you’ll see all your local energy options appear onscreen within seconds. And if like most energy customers you haven’t switched in a while, there’s a very good chance you can slash your energy bills by even more than the announced cuts.
For many, the chance to save up to £252* on their gas and electricity bill is all the reason they need to switch energy provider, but just in case one reason’s not enough, here are…
…The Big 6 Reasons to Switch Right Now
1. Save up to £252*
nPower, British Gas, EDF, E.ON, ScottishPower and Scottish & Southern have announced rate cuts, but some have cut more than others. Therefore, even if you're with one of these providers you could save even more by switching.
2. Lower your standards
If you're on a standard tariff then you're almost certainly paying too much. Don't believe us? Then compare energy prices right now to see what you could be paying.
3. Get online!
You could further increase savings by signing up to an online tariff. Posting bills and waiting for cheques to clear costs energy providers time and money, and they're willing to offer discounts if you agree to paperless billing and paying by direct debit.
4. Colder weather = more savings
Summer is still a way off, and as people use more energy during the colder months, switching to a cheaper tariff now means you'll save even more.
5. FREE smart meter
If you switch to a First:Utility tariff, they’ll install a smart meter for free. Ofgem want to have a smart meter in every household by 2020, so here’s your chance to beat the deadline by a dozen years. Plus, monitoring your energy consumption more closely means you could save as much as 15%** off future bills.
So now you’ve read our big six reasons to switch energy supplier, you’ll probably want to get straight to it, in which case, just follow the link below to see how much you could save.
I'm a Bank, I'm a Credit Union Video
Taking a leaf out of the i'm an Apple, i'm a PC adverts, here is i'm a bank, i'm a credit union video.
ISA Allowance Increased By £3k
Chancellor Alistair Darling's latest Budget has given savers a boost, with a £3,000 increase in the annual allowance under tax-free ISAs. The new total annual allowance will be £10,200, rising from the current £7,200 limit, and will apply to those aged 50 and over from this year. The increased allowance will be extended to everyone in 2010.Mr Darling said that the new overall allowance included an increase in the cash limit from £3,600 to £5,100. Since their launch 10 years ago, almost £290 billion has been saved in tax-free ISAs, the Chancellor said, with 18 million people having taken them out.
All money held in an ISA grows free of tax, with savers currently able to put in up to £7,200 a year in equities or a combination of equities and cash. The latest Budget announcement marks the second ISA allowance increase since their introduction in the 1999 Budget to replace former tax-efficient savings vehicles PEPs and TESSAs.
The total allowance was increased last year from £7,000 to £7,200.
Savings: Tax-free savings boost to combat lower interest rates
Hard-pressed savers received a welcome boost in the Budget, with the Chancellor announcing that the amount of money they can pay into an Individual Savings Account each tax year will rise from the current £7,200 to £10,200. The popular cash element of ISAs will rise from £3,600 to £5,100. The new higher ISA thresholds will come into force this tax year for people over 50 and for everyone else from April 2010.All money paid into an ISA is allowed to grow free of tax. The Treasury estimates there are 18 million ISA account holders and successive cuts in interest rates, as the Bank of England has slashed the cost of borrowing, have left them out of pocket. Pensioners, who rely on interest from their savings to cover living expenses, have especially felt the pinch as a result of the rate cuts. When the plight of savers became clear a few months ago, Treasury insiders promised a "Budget for savers" but in recent weeks such talk has been muted. Yesterday's move on ISAs was therefore greeted with some relief. Adrian Coles, director general of the Building Societies Association, said: "The recent interest rate cuts have meant savers have seen their income drastically reduce, so this will help give a greater incentive to save."
However, the tax break will do little to repair the damage already done to savers' finances from cuts in rates paid by banks and building societies. Raising the cash ISA limit will put an extra £30 a year back into the pocket of savers who have the maximum annual amount of money invested in an ISA, based on the current average rate of interest of just 2 per cent, according to financial information firm Defaqto. Last autumn, savers could routinely find cash ISAs paying more than 6 per cent interest.
Savers are also concerned by the cutbacks on pension tax relief for higher earners. "This could be the thin end of the wedge," said Peter Timberlake of insurer Friends Provident. "What is to stop the Government lowering this £150,000 limit to £100,000 or £50,000 in the future, gradually dragging people in? We have an ageing population and a pensions saving shortfall in this country. The Government should be encouraging saving for retirement, not making it less tax efficient."
Sourced from Independant [Link]
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