Am I still covered?
Providing you have paid your monthly premiums with your insurer, the cover we arranged remains in place and the terms of it are unaffected by the Coronavirus outbreak. If you have missed any recent payments, give us a call and we’ll do what we can to get you protected again.

If you have cancelled your policy in the recent weeks, it may be possible to have the policy re-instated. The exact terms for re-instatement vary by insurer, so please get in touch and we'll explore what is possible.

Can I take a premium holiday?
At the moment, insurers are not offering this same facility as lenders are doing - allowing you to defer premium payments. However, I am a member of the Openwork advisory network and they are currently in discussions with the major insurers on this issue. So it's possible that the position may change, but there is no guarantee that it will.

If you are in a position where you are worried about being able to afford your premiums, then please get in touch with with us as soon as you can so that we can explore what options may be available to you. I cannot, however, stress enough that whatever you do, you should keep your existing plan(s) in place and take advice before taking any further steps!

For obvious reasons, now is NOT the right time to be without cover. Cancelling your policy, with the expectation of reinstating it in a few months’ time when your income position is more stable, not only leaves you without cover at this critical time but would also mean you need to go through medical underwriting all over again. It is possible that insurer terms and conditions will also be tightened up in future, so you could also end up with an inferior policy to the one you currently have.

Will my insurer pay out if I die from Coronavirus?
The good news is that the vast majority of people who catch the virus go on to make a full recovery. If you were to die, then assuming the medical information you provided at the inception of the policy was correct, then the answer would be yes. Your insurer would, however, need to go through their normal claims process to confirm the claim is valid.

Will my insurer pay out for Critical Illness if I get Coronavirus?
Coronavirus is not a specified illness on Critical Illness policies and the view from most insurers is that the virus is unlikely to produce the permanent symptoms or impact on lung function required to meet the definitions evident on policies.

As stated above, the evidence from around the world is that the vast majority of people recover fully from the virus, therefore it is not an on-going critical illness. If you were unfortunate enough to die, then you would be covered. Insurers will, however, assess individual cases on their merit and will always seek to be fair in their assessment.

Will my insurer pay out on my Income Protection policy if I cannot work as a result of Coronavirus?
If the definition of disability is met as a consequence of the Coronavirus, or its impact on underlying or existing conditions, then we would expect the income protection claim to be paid. Most policies do have deferred periods (i.e. a period, usually 1, 3 or 6 months) before which a payment is made.

Will the redundancy cover in my Mortgage Payment Protection policy pay out if I cannot work as a result of Coronavirus?
We would expect that any claims for unemployment will be paid for existing customers. However, temporary or voluntary redundancy or a reduction in working hours by your current employer, is unlikely to be covered.

Can I take out a new policy or increase my Cover?
If you're looking to take out cover or increase your cover levels, please do make contact at the earliest opportunity. Many insurers are tightening their medical underwriting to reflect the additional risk associated with the Coronavirus. However, all the insurers we deal with are still accepting new life, critical illness and income protection cases.

It is also worth pointing out that many existing policies will also allow cover levels to be increased without the need for additional underwriting.

The insurers we recommend have been carefully selected because we believe they are the very best in the UK market. Included in our assessment is the proportion of claims they pay out every year – which for all the insurers I recommend is very high. You can, therefore, be confident that they would deal with all claims fairly and pay all valid claims.

Can I also remind you of the Support Services available on many protection policies, including in many cases remote access to GP services. Please refer to your policy booklet to check exactly what services you have and how to access them.

I know that for many people these are worrying and uncertain times, so I hope that the information I've provided here is helpful and may answer at least some, if not all of the queries and concerns you may have. However, if it raises any additional questions or you are still worried, then please don't hesitate to get in touch with me

First of all, in this difficult time, we hope that you and your family are well and continuing to manage through this extraordinary and tough period.

We continue to see significant volatility in global equity markets with large daily falls and gains seemingly now the norm. With this in mind, it is really important that you think twice before taking any action over your pensions and investments.

European markets followed the US market on Friday (24 April 2020) falling on the back of the news that Gilead Sciences’ drug remdesivir did not improve patient’s condition or reduce the coronavirus pathogen in their bloodstream.

Markets fell by between 1% and 2%.

In contrast, the United States markets bounced back in late trading, ending the week on a note of relative calm, up over 1% after President Trump signed another $484 billion stimulus package to support small businesses.

Whatever you are invested in, we’d like to remind you about the following key principles.

1. Stay invested – as you have seen global equity markets fall and the value of your own investments fall as well, it is natural that some of you will be thinking whether you should sell your investments and move to cash or some other “safe haven”. Our strong message to you is stay invested, focus on the investment objective that you set with your Financial Adviser at outset and trust the process. History shows that as night follows day, global equity market recoveries follow global equity market falls and it is damaging to miss out on the recovery days. The following chart shows the performance of the FTSE All Share between 30 September 1998 and 31 March 2020 and the impact if you missed the 10 best days. The cost of missing these 10 best days would have been over 3% a year (Source: Omnis Investments).

In such unprecedented times, it is important to know that your hard-earned pension savings and other investments are being looked after. The Openwork Investment Committee is monitoring your investment closely. While none of us can stop short-term market falls, we do fully expect global equity markets to recover. We cannot predict timescales but if you do not need your money now, we believe you will be rewarded for staying invested.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Past performance is not a reliable indicator of future performance and should not be relied upon.

Finance: the last taboo
There’s a wide variety of reasons why people don’t like to discuss their finances. In some cases, money is simply viewed as a vulgar subject to talk about, while many individuals lack financial confidence and therefore feel foolish discussing their finances; for others it’s easy to just ignore the issue altogether or simply leave it to someone else to sort out. As a result, many of us don’t like to talk about money, which means finance stands out as one of the last taboo topics in our society.

Importance of financial conversations
A failure to communicate about money though can lead to serious problems especially for other family members. This particularly relates to the younger generation and the importance of nurturing a sense of financial responsibility that will ensure they are ready to take control of their finances. It’s also critical in relation to older people as, if discussions have not taken place, there is no way of knowing their wishes when important issues relating to their financial future inevitably emerge.

Elephants in the room
While it is therefore vital to talk, discussing some financial topics can prove extremely challenging for many people. For example, parents often find it difficult to discuss issues surrounding inheritance and the transfer of wealth which means conversations with their children on this topic can be awkward or stilted. It is imperative, however, that parents do include their offspring when making financial planning decisions in order to ensure they are ready to assume responsibility for family assets when the time arises.

Finance paralysis
An inability to talk about money can also lead to personal finance paralysis, which is basically the fear of making a bad decision. This can result in people either delaying important financial decisions or not making any decisions at all. Talking issues through with a trusted confidante though is a particularly good way to help alleviate such anxieties as it equips people with both the knowledge and conviction to make appropriate decisions.

Talk to us
As with most things in life, it’s usually easier to figure out financial problems if you talk them through with someone you trust. Discussing issues with those people that matter to you can help get things into perspective and thereby aid the decision-making process. And remember, we’re always here to help too, so feel free to get in touch and start a financial conversation with us.

Key Takeaways

• Experts have long stressed the best approach to financial issues is to talk about them
• A failure to communicate about money can lead to serious problems
• This particularly relates to the younger generation and the importance of nurturing a sense of financial responsibility
• It’s also to older people as there is no way of knowing their wishes when important issues relating to their financial future inevitably emerge
• Parents often find it difficult to discuss issues surrounding inheritance and the transfer of wealth
• It is imperative that parents include their offspring when making financial planning decisions
• This will ensure they are ready to assume responsibility for family assets when the time arises
• An inability to talk about money can lead to personal finance paralysis, a fear of making bad decisions
• This can result in people delaying important financial decisions or not making any decisions at all
• As with most things in life, it’s usually easier to figure out financial problems if you talk them through

We’re here to help, so feel free to get in touch and start a financial conversation with us.

Recent research shows 1 in 10 UK adults with a pension (and not yet retired) have reduced or stopped pension contributions because of Covid-19.

• 1 in 10 UK adults have reduced or stopped pension contributions
• 1 in 4 workers are worried about paying for every day essentials
• 1 in 5 workers are worried about keeping up with mortgage or rent payments

The economic fallout resulted in a drop in income for many people meaning them having to decide between their short-term financial needs and long-term savings. The research revealed that almost a quarter of workers (24%) are worried about paying for essentials such as food or energy and a fifth (20%) are concerned about paying mortgage or rent.

Greater impact for those already struggling to save
Research has shown that the groups most affected financially by COVID-19 are those groups who may already be struggling to save for retirement: self-employed, younger workers (18—24 – year olds), women and part-time workers.

2 in 5 self-employed workers (43%) have seen their income drop and as a result almost one in five have needed to pause or reduce their pension contributions. This compounds an already existing problem with the self-employed being unable to save adequately for retirement – figures from 2019 show that 41% of the self-employed workforce were not saving anything for retirement.

The nation’s youngest workers are also likely to reduce their pension savings and of this age group, 7% were found to have moved their pension into lower-risk funds, despite being years away from retiring.

Another group already struggling to save are women, who are generally more likely to be in part-time employment or lower-paid jobs. Part-time workers also tend to be less well prepared for retirement and have been harder hit through job losses and furloughing than full-time workers, resulting in them being more likely to change their long-term savings habits than full-time workers (15% versus 6%).

Here to help
If you are considering reducing or stopping your pension contributions, contact us for help in reviewing your options. If you have already taken this step, it is important to review your retirement savings as soon as your situation improves. We are here to help and give you sound financial advice tailored to your individual needs.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested. 

KEY TAKEAWAYS

• One in 10 UK adults, with a pension and not yet retired, have reduced or stopped pension contributions because of the pandemic
• Savers are having to decide between their short-term financial needs and long-term savings
• Almost a quarter of workers (24%) are worried about paying for essentials such as food and energy and a fifth (20%) are concerned about paying their mortgage or rent
• Those groups already struggling to save for retirement including the self-employed, younger workers (18 to 24-year-olds), women and part-time workers have been found to be most affected financially
• Two in five self-employed workers (43%) have seen their income drop, almost three times the proportion of employees (16%)
• The self-employed are unable to be included in auto enrolment
• 18 to 24-year-olds are likely to reduce pensions savings and 7% have moved into lower-risk funds
• Women and part-time workers have also seen a greater impact on their ability to save
• Contact us to review your options if you are thinking of changing your pension in any way
• If you have already done so, as soon as your situation improves, we can help you review your retirement planning.

If you are nearing retirement, you may have been particularly worried about the impact of recent market volatility on your pension assets and perhaps you are reassessing your retirement plans. There are several things to consider if you are planning to retire, which will depend very much on your own circumstances.

Since pensions freedoms were introduced in 2015, there are many more options available to retirees. Sudden retirements used to be the norm. People would stop work completely one day and be fully retired the next, perhaps receiving a regular income from an annuity. It is now possible to take a more gradual journey into retirement - making use of this flexibility in how you draw funds could be sensible in times of uncertainty.

Consider your timescales
If your planned retirement is 5 to 10 years away, there is a reasonable time for your savings to recover from the recent market volatility, but you should still take action:

• Review your retirement age.
• Consider increasing your pension contributions.
• Talk to us about your attitude to risk and appropriate fund switches.

If you have less than five years to retirement, your pension pot may not have been exposed to market volatility as much as you think. You may have benefited from a lifestyle option on your pension which is designed to ‘lock in’ investment growth as you approach retirement, by switching funds to less risky assets. This option is not suitable for everyone, particularly if you intend to keep your pension pot invested and use income drawdown to give you an income in retirement.

If you are retiring this year and your pension pot has taken a hit, you could consider delaying retirement until markets recover, but this may not be an option for everyone.

Advice is key
One of the biggest risks in uncertain times is to act in haste and make rash decisions.

Getting financial advice is crucial in making the right decision. We can help you consider all your options, including reviewing whether any other assets could be used to provide an income, so that your pension stays untouched.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested. 

KEY TAKEAWAYS

• If you are nearing retirement you may be worried about recent market volatility on your pension assets
• Advice will depend on your own circumstances
• Pensions freedoms have introduced more options, including a gradual step into retirement
• Timescales are important but options should be reviewed at each stage
• If retirement is 5 to 10 years away - review your pension ages, funds and consider increasing contributions
• If retirement is less than five years away – you may be locked into a lifestyle approach
• Advice is crucial if your only option is to retire this year and your pension pot has taken a hit
• Don’t act in haste – talk to us for advice.

Keep it simple
Many products are available but a simple level-term policy, where a pre-decided lump sum is paid out should you die within a stated period, is among the simplest to arrange and is typically not very expensive. As a rule of thumb, life cover should provide ten times the main breadwinner’s income. The amount should cover any outstanding debts, including mortgage, regular outgoings, potential university fees and so on. The term should reflect the needs of your dependants; Children will probably need support until they leave education and a partner may need it until pensionable age.

Joint or single cover?
A joint policy will cover you and your partner, paying out on the first death within the term. Alternatively, you can have separate single-life policies; a little more expensive but potentially two payments. A young, fit individual should find life cover affordable. Be open about your lifestyle, especially if you have existing medical issues. Premiums rise with age, lifestyle factors, such as smoking and other factors that affect your life expectancy.

Keep under regular review
Reviewing your protection needs helps make sure you have the right cover in place for your financial circumstances, giving you the peace of mind that you’ve got things covered.

As with all insurance policies, conditions and exclusions will apply.

It's all too easy for us to put our head in the sand when it comes to thinking about our protection requirements. People tend to find it challenging to engage with the topic as it involves thinking of negative potential scenarios. In reality, this is the reason to put it to the top of your ‘to-do list’. Life is hopefully rosy but being prepared for any eventuality is truly priceless.

One important type of protection worth serious consideration is accident and injury cover. Life’s an adventure, we don’t always know what’s waiting for us around the corner and if the unexpected happens, you deserve the peace of mind that you’ve got things covered financially.

• You can take out cover from the age of 18 to 60, without any health questions.
• The cost of your policy will remain the same, even if you make a claim or as you get older.
• Policies pay a fixed amount of money for specific injuries, depending on the level of cover.

Flexible cover, tailored to your needs
We can advise you accident and injury cover for your circumstances that provides financial support covering a range of accidental injuries, from a broken bone, to one that could seriously impact your life.

The flexibility of cover available is one of the major benefits, in addition to the ability to choose the level of cover that is tailored to your individual requirements and lifestyle; and suits your budget.

Core cover includes broken bones, accidental death and permanent injury, permanent disability, funeral benefits and UK hospital stays.

Some policies give you optional cover add-ons like protecting your children, active lifestyle cover and healthcare cover, for those who may be at particular risk of contracting certain illnesses, such as those who work in the healthcare sector.

With accident cover you can make multiple injury claims and your policy will continue to protect you in the future.

The last few months have provided the perfect opportunity to take stock of your finances and protection cover; you may be thinking about reducing your outgoings, but protection policies can provide a lifeline when you need it most.

For a cost-effective way to look after yourself and your loved ones, so you’re ready for the unexpected, we can help ensure all of your protection needs are covered. Then you can enjoy life, unclouded by concerns of what might happen if you’re ill, injured or need to spend time in hospital.

As with all insurance policies, conditions and exclusions will apply

Both the funeral and accidental death benefit once paid out, will end the plan.

Age restrictions apply on child cover 

KEY TAKEAWAYS

• It's all too easy for us to put our head in the sand when it comes to thinking about our protection requirements
• Being prepared for any eventuality is truly priceless
• One important type of protection worth serious consideration is accident and injury cover
• Should the unexpected happen, you deserve the peace of mind that you’ve got things covered
• Providing financial support, covering a range of accidental injuries, we can advise you on the right accident and injury cover for your circumstances
• The flexibility of cover available is one of the benefits
• You can choose the level of cover that is tailored to your requirements, lifestyle and budget
• For a cost-effective way to look after yourself and your loved ones, so you’re ready for the unexpected, we can help ensure all of your protection needs are covered.

Little did we know, as we entered a new decade, what was in store for the global economy in 2020. Around the globe, the Covid-19 pandemic has inflicted a huge human cost. The response, and the measures to reduce the spread of the virus have inevitably had a significant impact on global economic activity.

A recent Organisation for Economic Co-operation and Development (OECD) outlook, cautioned, ‘as restrictions begin to be eased, the path to economic recovery remains highly uncertain and vulnerable to a second wave of infections. With or without a second outbreak, the consequences will be severe and long-lasting.’ With business activity frozen in many sectors, confidence has understandably been undermined.

With lockdowns now easing in some regions and economies beginning to reopen, many major indices have rebounded from the lows reached in March as the pandemic took hold.

On home shores
In the UK, recent ONS data highlighted the UK economy contracted in April by 20.4%, the largest monthly contraction on record. The OECD data showed the UK is likely to be one of the hardest hit major economies due to its service-based nature. The Bank of England’s Monetary Policy Committee (MPC) recently increased the size of its bond- buying programme to help fight the coronavirus-induced downturn. The MPC expressed in their minutes, that the fall in global GDP in Q2 will be less severe than expected and there are signs that services output and consumer spending are picking up.

Other regions
As concerns about a second spike of infection surfaced in the US in June, Steven Mnuchin, US Treasury Secretary, ruled out shutting down the US economy again. International Monetary Fund data for the 19-country Eurozone, revealed growth across the bloc contracted by 3.8% in Q1. As lockdown measures eased, European markets have rallied, but should there be a 'second wave' of Covid-19 infections it will dampen optimism.

Output in China contracted during Q1, the first recorded contraction since at least 1992. Chinese authorities will not be establishing growth targets this year. The country faces significant challenges, with a struggling economy and rising international hostility.

Uncertain times, keep talking
Uncertainty surrounds the future spread of the virus and the success of efforts to develop a vaccine and therapies to counter it, making it challenging to predict the path for the global economy.

A well-defined investment plan, that considers your personal circumstances, can help you weather market storm. Volatility is a timely reminder to keep your investments under regular review. We want to reassure you that we understand the challenges you may face and are here to support you.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested. 

KEY TAKEAWAYS

• The pandemic has inflicted a huge human cost and the response has had a significant impact on global economic activity
• Many major indices have rebounded from the lows reached in March
• With lockdowns now easing in several regions and economies beginning to reopen, bleak economic data is still being released
• The UK economy contracted in April by 20.4%, the largest monthly contraction on record
• The OECD data showed that due to its service-based nature, the UK is likely to be one of the hardest
• · The Bank of England said that the economy could shrink by 14% this year but may bounce back with growth of 15% in 2021
• As concerns about a second spike of infection surfaced in the US in June, Steven Mnuchin, US Treasury Secretary, ruled out shutting down the US economy
• Uncertainty surrounds the future spread of the virus make it challenging to predict the path for the global economy
• A well-defined investment plan can help you weather market fluctuations
• We understand the challenges you may face and are here to support you

https://www.bbc.co.uk/news/business-54299628

https://propertyindustryeye.com/mortgage-approvals-hit-13-year-high/

Take a look- https://www.yourmoney.com/investing/coronavirus-vaccine-hope-sparks-relief-rally-for-shares/

https://www.theopenworkpartnership.com/news/more-than-293-billion-earmarked-for-younger-generations/