Moving to a new country to start a new life can be very exciting, but also a bit overwhelming with everything that you have to organize before you leave. Here is a helpful list of financial matters which should be thought about.
• If you own a house in your home country which still has a mortgage on it, then it is essential to tell your lender you are moving abroad. You can discuss payments with them and see what the best way is for making the payment while you are abroad.
The main reason to buy life insurance if you have a mortgage is to ensure that all or part of your mortgage is paid off in the event of your death. This means your partner or family can continue to live in the family home without having to worry about making mortgage repayments when they have already lost one household income.
Unless they are extremely wealthy most people need life insurance to cover expenses, if you die then expenses such as mortgages or school fees still need to be paid. These expenses, coupled with a loss of one income, perhaps the only income, can cause financial hardship for your remaining family.
Key man insurance is life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps an employee, such as Sales Director or Portfolio Manager, who is responsible for much of the firm’s revenue.
The people who you need key man insurance are the people who are crucial to a business-the ones whose absence would be the downfall of the company.
Statistics from Society of Human Resource Management indicate the cost to recruit and train a new Chief Executive is typically 250% of their annual salary.
UK inheritance tax is a tax on a UK domiciled individual’s estate on death and on certain gifts made during their lifetime. UK inheritance tax is charged at 40% of the value of your estate, which exceeds the nil rate band of £325,000.
For example; Tony’s estate is worth £1,000,000, this includes his properties, cash, collectibles etc. If Tony died, then the beneficiaries of his estate would have to pay the UK government £270,000 in UK inheritance tax (£1,000,000 - £325,000 = £675,000 @ 40%). They may have to sell part of his estate to afford this tax bill.
Critical illness insurance provides you with a cash lump sum if you are diagnosed with a critical illness, protecting you and your family, if you are unable to work due to illness. Critical illness insurance covers a wide range of illnesses including cancer, dementia, heart attack and heart disease.
Most people do not believe that this will happen to them and we hope it never does, however:
Nowadays there are such a large variety of life insurance plans available, cost should not be an excuse as to why you do not have the proper amount of protection.
The following ways can help you save even more money on getting adequate cover.
- Use Comparison websites
Make sure you shop around and compare lots of different insurance company’s policies in one location.
When you are looking for the best option on how to insure you and your partner, it is essential to know the differences between Joint and Single Life insurance policies:
By following www.MyMoney.com.hk tips, finding the right life insurance policy for you can be a quick and easy process.
1. Understand what policy you need
Term life insurance lasts for a specified period of time, it is usually cheaper than whole of life. Whole life lasts from the day you open your policy to the day you die. Whole life usually builds up a cash value, whereas term life does not.
2. Don’t pay more than you can afford