Relevant Life Policy: How Is It Suitable For You?

Relevant Life Policy
Relevant Life Policy

The relevant life cover has been designed to provide protection to the employees who are working in small organizations. It is funded by employers who wish to set up a death-in-service benefit for their employees beyond the coverage offered by the chief company plan. This plan is typically suited for organizations having too few workers to qualify for group life schemes. As the employer is funding the relevant life policy, only he should complete the application form. If you are thinking about securing this cover but are not sure as to how suitable it would be for you, then you can go through the features, benefits and restrictions of this policy thoroughly to make a decision. As we progress through this article, we will know more about them.

Requirements to be fulfilled if you want to secure this policy

This relevant life policy is fairly new in the market. Therefore, it would only be wise for you to go through the legislative requirements that need to be fulfilled if you want to opt for it:

  • The policy can be secured by limited companies having directors.

  • It does not have a surrender value.

  • The kind of insurance can’t be sought for covering business loans, or for business succession or planning.

  • The benefits are payable before the client turns 75 years old. The cover stops providing protection as soon as the insured celebrates his 75th birthday. There are certain insurance carriers that allow a cover to be set up for a fixed tenure until the client turns 50 years old, or else be renewed for every five years. But whatever be the case, the cover can’t extend beyond 75 years, as already mentioned.

  • The amount is payable through a discretionary trust.

  • Income protection, disability, and critical illness can’t be covered by relevant life insurance. A terminal illness cover, though, can be added. But the benefits of this cover will only be paid when the employee is still working for the employer who had originally set up this cover for him.

  • Both the employer and the employee are entitled to substantial tax relief. But the purpose of securing the cover should not solely be tax avoidance.

How Suitable Is It for You?

Provided you fulfill the legislative requirements of the relevant life cover, then it would be sensible to invest in one since it will offer you significant tax benefits that a traditional life insurance policy won’t do. Let us find out more about them.

The employer is entitled to significant tax rebates as the premiums paid are considered to be part of trading expenses. It is particularly suitable for the high-earning employees with substantial pension funds as they can keep the benefits of this policy separate from the pension funds and other allowances that they receive. The amount provided can even be worth 20 times the annual salary received by you.

What is the role of the trust in the payment of the benefits?

As soon as the employer completes the documentation process (i.e., the application process), the relevant life policy trust is set up. Please remember most of the insurance providers would require the trust to be set up before the policy is issued. The employer is one of the trustees. A separate trust deed has to be drafted in case the need for additional trustees arises. You can leave behind a letter of wishes, indicating how you want the money to be spent, or else when you want your children to be in charge of the money. Though this letter does not have a legal significance but the trustees will definitely take the points into consideration while paying the benefits.

Author Bio: ST is a regular blogger, writing mainly about insurance and loans. His writings primarily reflect the changing trends in the finance sector.


Relevant Life Policy: How Is It Suitable For You?

Demerits of Payday Loans: Know More

Payday Loans
Payday Loans

In the wake of the economic crisis in America, a lot of its people are opting for payday loans to tide over their temporary financial problems. Borrowers take help of short-term financing to attend to their immediate needs like paying off medical bills in case of a sudden accident or illness in family or for paying off various utility bills. However, these fast cash loans have some serious shortcomings that you should be aware of if you are thinking of getting one.

Short term financing- Demerits

1) Availability of Easy Money

One of the most significant features of payday loans is that they can be obtained very easily, without any conventional credit check involved. Thus, there are chances of borrowers getting addicted to them. Borrowers with low earnings find it difficult to obtain the traditional loans, owing to their poor financial situation. Therefore, they rely more on short-term financing that carries very high interest rates to tide over temporary problems. Fast cash loans with high interest rates only make matters worse for them as they are already reeling under financial hardship. So, it is advisable that you judge your requirement properly before borrowing. For instance, taking their aid to pay medical bills is understandable. But it is not prudent to consider this type of credit for funding a short pleasure trip, when you already are faced with economical hardships.

2) High Rates of Interest

As already mentioned, the no credit check payday loans carry very high rates of interest. Since these are high-risk loans (as they require no credit check and can be secured within 24 hours), they carry exorbitant APRs that can even touch the 1000% mark.

3) Serious consequences on failure of payment

It might be very easy to secure the online loans same day but in case you fail to repay them on time, you might face serious consequences. The creditor will probably charge you high penalty fees. If you do not pay off the debt within one month, then the interest rates will add up, whereby you might find that your total debt has spiraled out of your control. Therefore, take only that much of money that you think that you can repay.

Some Solutions

As you are now aware of the demerits of short-term financing, it is important for you to exercise due prudence before and after securing it. Go through the tips mentioned below to know more.

  • Repay on time. Do not opt for a rollover as that may cost you dearly. Plan your budget properly so that you are able to manage the debt and other expenses at the same time.

  • Conduct due market research before taking these loans. Compare the rates offered by a few lenders to find out who is offering more affordable rates. However, if you discover that a particular lender is offering very low rates, then call the lender up to inquire about the hidden charges.

  • It would be advisable for you to consult a financial advisor if you are not clear about the features of short-term financing.

Author Bio:
Sidney Terrell has been writing informative articles for well-known web portals on a regular basis. Loans, investments and equity markets are some of the significant topics that she writes about.

Demerits of Payday Loans: Know More

Financial reports: how to make them easier

Financial report
Financial report

When it comes to making financial reports, many businesses can go into a period of brief chaos. Not only can they be extremely complex and difficult to put together, but in doing so a great deal of your company’s time and energy can be wasted on correcting mistakes and making sure everything is in order.

But they needn’t be a chore. Just like anything, making a financial report does have several very important keys to make the process extremely easy. Below are just a few.

Keep financial report periods shorter

All financial reports are usually presented either quarterly or annually. Both have very definite benefits and drawbacks. Presenting reports annually can lead to a much clearer overall picture of your company’s present state, but this can take a lot longer to put together. Making quarterly reports, however, can be much easier with less information to have to collate. Quarterly reports are a good solid place to start.

Use in conjunction with financial management software

Using financial management software such as Sage One will help you collate all your information and makes for an easy reporting tool when it comes to tracking, logging and collating all of the company’s business information, incomings, outgoings and overheads.

Attempting to do this freestyle can lead to erroneous calculations that could be potentially serious for a company, especially as financial reports are often for the use of official bodies. Financial software will also let you log all of your businesses transactions in real time and not leave anything out that could be of supreme importance.

Label everything clearly

When working with spreadsheets to collate the raw data before it is presented, it is absolutely essential that all of them are labelled correctly and thusly avoid anything being put into the wrong bracket accidentally. This is a very easy task to do before all the information is gathered up, but not doing so will quickly see the confusion mounting up under the weight of a month’s worth of business transactions.

Present them in simple yet elegant forms

When you deliver your reports, do so in a fashion that is simple and uncluttered. Simple pie charts and graphs are a very effective way of underpinning all of the heavy information contained within the report itself. It can also be a great way to present the information to employees regarding the company itself and areas which require a little rethinking to run smoother with lower overheads.

Triple check anything manually inputted

Information, which has been manually inputted, must be checked and double-checked and checked again. Human error is the main reason for miscalculation but can be easily avoided if careful.

Seek assistance

For those looking for further help you can even find guides available from the government. Their ‘Simpler Reporting for the Smallest Businesses’ is a great place to start and can be accessed online.

Financial reports: how to make them easier

Unsecured Loans for People with Bad Credit History

Unsecured Loans
Unsecured Loans

Those who have a poor credit score often find it difficult to qualify for unsecured loans. But the fact that you have a bad credit does not mean that your expenses won’t be there. You still have to pay those utility bills, you may need to consolidate debts, cover the tax bills, pay for repair etc. And what if you can’t keep your home or car as a collateral? Do you have any other borrowing options at all?

Well, to tell you the truth, yes you have! You can get an unsecured loan even when your credit score is not-so-fair. Here are some good tips to help you out.

Hire the service of a broker – If you are trying to get an unsecured loan with bad credit, consider consulting a broker. He will help you contact many lenders who provide bad credit finances. Brokers are familiar with a number of lenders and banks and therefore, successfully help borrowers with bad or good credit score get loans that fulfill their requirements.

Work with a co-signer – If you are going to apply for an unsecured credit with a poor credit score, it is advised that you take the help of a co-signer. This person can be from your family, friends or acquaintances and must have a good credit score as well as enough income to pay off the amount. He/she will apply for the finance with you and promise to repay the loan if you fail to do so within the given time-frame.

Though initially it sounds very attractive to get the help of a co-signer, it’s not that easy always. Remember, your co-signer is completely responsible for the amount that you borrow and therefore won’t be able to borrow much for himself until and unless your loan is paid off. If he plans to buy a home in the near future, it might become impossible. If you become unemployed or get injured during the repayment period and fail to pay the installments, the co-signer will be answerable to the lenders. If he can’t afford the payments, his credit score will suffer.

Apply for bad credit loans – There are ways to get unsecured loans. There are companies that exclusively deal with people with poor credit scores. They will match you with lenders who are not so interested in the past credit records of the borrowers. Naturally, these lenders don’t ask to furnish any credit report as well. The only thing that you require is a valid bank account.

Try to improve your credit score: This is probably the most natural option to qualify not only for unsecured loans but also for all sorts of finances. An improved score will always help you get approved for any type of secured or unsecured loans. Factors that affect your score include available credit to your account, debt and credit ratio, and collection accounts. If you have a number of bills that are overdue, paying all of them will help you improve your score as well as increase the possibility of qualifying for further credit.

Unsecured Loans for People with Bad Credit History