Personal

Personal Protection

There are several ways in which to protect yourself and your family in the event of an untimely death. Most people take out life insurance to provide for their families and alleviate any financial worries at a difficult time.

Level Term Assurance pays a lump sum in the event of death during the term of the policy. There is no investment element within a term assurance contract so at the end of the term there is no maturity value and life cover lapses. The benefit is paid tax free and premiums are usually monthly, and fixed throughout the term. Because the term and benefit are known from the outset, and there is no investment content, term assurance is a very cost-effective method of protection.

Decreasing Term Assurance works similar to Level Term Assurance, but the benefit is set at outset and gradually decreases over the term of the policy. These policies can be used as cover for a repayment mortgage, or other loan where the amount of capital outstanding also decreases over time. Because the benefit reduces over time, the premiums are kept very low.

Family Income Benefit works the same as term assurance but instead of paying a lump sum upon death, it will pay a regular monthly tax free income in the event of death to your dependants up until the end of the term of the policy

Critical Illness is usually available as an addition to all term assurance plans but can be bought on a stand alone basis. Critical illness generally allows for the lump sum benefit to be paid also in the event of diagnosis of certain critical illnesses, such as Heart Attack, Stroke, Transplant, Blindness, Total & Permanent Disability and so on. Most providers conform to the Association of British Insurers standards for qualifying illnesses and it is important that you fully understand the terms of each illness

Mortgages and Mortgage Protection

Mortgages are the largest single transaction in most people’s lives. Buying a property can be a stressful and time consuming experience, although nowadays the financing of a mortgage is a case of finding and selecting the most suitable deal, rather than simply accepting a lender’s offer.

Hundreds of banks, building societies, and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers.

There remains two main methods of repaying a mortgage loan, and it is possible to set up the loan on a ‘part repayment and part interest only’ basis. A description of these methods is provided below.

Repayment (capital and interest) mortgages

Under a repayment mortgage your monthly repayments consist of both interest and capital hence, over time, the amount of money you actually owe will decrease. In the early years your repayments will be mainly interest and therefore the capital outstanding will reduce slowly in the early years.

Whilst this method ensures that the loan is repaid at the end of the term providing all payments are made on time and in full, it is generally more expensive at the start

Interest only mortgages

As their name suggests, with an interest only mortgage you only repay the interest on the loan. At the end of the term the capital is still outstanding. Therefore you will usually need to take out some kind of investment policy to save up enough to repay the loan at the end of the term

Traditionally the preferred product for repaying the capital of an interest only mortgage was a mortgage endowment policy (which included a set amount of life cover) – although more recently customers are using Individual Savings Accounts (ISAs) and pensions to build up a sufficient sum and taking advantage of the tax breaks offered by these products.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

The Financial Conduct Authority does not regulate some forms of mortgages.

Broker fees may be payable for mortgage advice. These would typically be 1% of the loan we arrange for you. However, we will discuss your payment options with you and confirm the actual amount payable before we begin to provide our services.

Pension Planning

Pensions Pre and Post retirement options

An unbiased review of your plans will ensure that you aren’t suffering from high charges and poor investment performance.

Our no obligation service will compare your current plans against the whole of the market and provide you with the facts. Whole of market advice means we will find the best annuity rates for your individual circumstances.

Pensions are, of course, designed to enable you to save sufficient money to live comfortably after you have retired from work. There are many different ‘tools’ used to save for retirement and the taxation and investment elements of pensions can appear baffling. We specialise in explaining , recommending and monitoring pensions for you. Below are the most common sources of pension to fund for your retirement.

• The Basic State Pension – for people who have paid sufficient National Insurance contributions while at work or have been credited with enough contributions
• Additional State Pension – this is now the State Second Pension (S2P). Before 6 April 2002, it was known as SERPS (State Earnings Related Pension Scheme). From 6 April 2002, SERPS was reformed to provide a more generous additional State Pension for low and moderate earners, carers and people with a long term illness or disability. State Second Pension is based upon earnings on which standard rate Class 1 National Insurance contributions are paid or treated as as having been paid. Additional State Pension is not available in respect of self employed income.
• An Occupational Pension (through an employer pensions scheme) – if your employer operates a pensions scheme, it’s usually a good idea to find out about the benefits of the scheme.
• A Personal Pensions Scheme (including Stakeholder schemes) – open to nearly everyone and especially useful if you are self-employed or your employer doesn’t run a company scheme.
• Income Drawdown (known as Unsecured Income From 06/04/06) & Open Market Option – Many clients are not aware of their options at their chosen retirement age, by having a discussion prior to retirement clients will be in a position to make an informed choice and perhaps have a higher income in retirement than initially anticipated.You will have choices through the “Open Market Option” which all personal pension plans include, this allows you the option to look for an annuity that could give a higher income than your current pension provider. You may choose to go into an income drawdown (unsecured Income) arrangement which allows you pension fund to stay invested whilst taking an income.
  By conducting a financial review we can agree the best option for you now and in the future.

State Pensions may not produce the same level of income that you will have been accustomed to whilst working. Ask yourself this question could you live on the Basic State Pension it is important to start thinking early about how best to build up an additional retirement fund. You’re never too young to start a pension – the longer you leave it the more you will have to pay in to build up a decent fund in later life.

Wealth Creation

Investments and ISA’s

Fair charges, good investment performance, regular reviews and correct risk profiling are the ingredients for an appropriate investment portfolio.

We are investment advisers and can therefore help you with all new or existing investments and ISA portfolios. Where appropriate, we use online investment platforms which allow clients access to their fund information over the internet.

Why are we encouraged to save money? From childhood most of us are told to put away money to save for the future – perhaps for something special? Or perhaps to be sure that when we really need something we have the funds to acquire it, without taking on debt? Whether you place your money in a piggy bank, or in a multinational investment house, our aims are broadly the same; to provide for our future needs, and to protect ourselves against unexpected causes of expenditure.

When planning your finances, it is important to distinguish the difference between savings and investments. Savings are generally funds that you set aside, but can access relatively quickly. These savings are often for a specific need or purchase, like a holiday or a new car.

Investments are designed to be held for a longer term, usually at least 5 years. You need to be comfortable with tying up this money for a period of time, and should not consider investments unless you have some savings in place. Most investments are not guaranteed to return your money in full, although do offer the prospect of higher returns than deposit accounts. Returns, risk and volatility are the factors that will determine a suitable place for your savings.

At Hollycroft Financial Services Ltd we can guide you through the options available and make recommendations for products and portfolio’s to meet your short, medium and long term goals depending on your attitude to risk.

Wealth Protection

Ensuring you retain control of your wealth through the latter years of your life is an area many of our clients have benefited from, by listening to you and assessing your needs coupled with your attitude to risk, Hollycroft Financial Services Ltd can offer help and advice in the comfort of your own home.

Will Writing Service

Making a Will is relatively straightforward and not very expensive. In spite of this, seven out of ten people in the UK die without a Will.

This often causes delays, hardship and worry – and even costly legal bills can result if there is confusion and disagreement among those left behind.

How can Hollycroft Financial Services Ltd help?

• Intestacy Laws
• Will writing
• Discretionary Will/Trust Wills
• Living Wills
• Powers of Attorney
• Partnership and Shareholder Agreements
• Deed Polls
• Property Protection trusts/ Joint Tenancy in common

Contact Hollycroft Financial Services Ltd today for more information on personal protection, mortgages and mortgage protection, pension planning, wealth creation, wealth protection and will writing services.