Insurance Products

ACL is authorised by the Financial Services Authority to advise and arrange regulated insurance products which can be described as those that offer pure protection and do not incorporate any element of savings or investment.    We have access to a selected panel of long established reputable top UK companies who can provide the widest possible range of cover.

YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE
This is an important statutory warning required by the FSA to appear on all literature and correspondence. However, insurance can protect you from arrears and the unfortunate consequences that could result.

Mortgage Protection Insurance and Life Insurance

Mortgage and Life assurance encompasses a number of different products, which can be purchased separately or combined; they can protect your income/lifestyle and also offer valuable financial protection in the event of your early death or if you have a family dependent on your earnings.

Mortgage Payment Protection Insurance (MPPI)

If you fall behind with your mortgage payments and cannot catch up again, you could eventually lose your home. But you can take steps to protect yourself against this risk by taking out MPPI. This type of insurance takes over your monthly mortgage payments for a specified period if you suffer accident, sickness or unemployment. You pay a monthly premium while the mortgage is running and if you become unemployed or unable to work due to sickness or accident the policy pays your mortgage. The first 60 days from the start of the policy are normally excluded for claims of unemployment but not for sickness or accident. Both employed and self employed persons qualify.

Term Life Insurance

This type of policy pays out a lump sum if you die or become terminally ill during the term of the plan. The amount paid out will depend on whether the policy is Decreasing Term or Level Term. The plan term and the premiums are all determined at the start.
Decreasing Term is the cheaper option because it pays out a reducing sum over the term of the plan and designed to cover the falling outstanding balance on a repayment mortgage which comprises capital and interest payments. A Level Term policy pays out a constant amount from start to the end of the plan. This cover is appropriate to cover an Interest Only mortgage where the capital balance remains outstanding throughout the term.

You may choose to have either a single-life or joint-life plan. Depending on the number of lives the sum assured will be paid out if:

for a single-life plan

• you die before the end of the plan term, or
• in some cases you develop a terminal illness at least eighteen months before the end of the plan term;

for a joint-life plan

• either of you dies before the end of the plan term, or
• in some cases either of you develops a terminal illness at least eighteen months before the end of the plan term.

There is normally very little difference in the cost of a single life or joint life plan because the benefit is paid out on the occasion of the first to die or develop a terminal illness.   If your plan has been assigned to a lender, the benefit will automatically be credited to the mortgage account to pay off or reduce the outstanding balance owing.   If at the end of the plan term the sum assured has not become payable, the plan ends and nothing is paid out.   A Terminal illness is:

• An illness that is expected to cause death within 12 months.
• You need to advise the insurer about it at least 18 months before the end of the plan term.
• You must be resident in the UK or certain other countries

This graph shows how the amount of life cover changes for the different policy types over the term.

Family Income Benefit

Rather than paying out a lump sum should you die during the selected term, a Family Income Benefit policy pays out a regular tax free income for your dependants for the remainder of the plan term. The amount of income benefit usually remains level over the plan term selected, although you can request that benefits increase in line with inflation as an optional extra. As an example, if you select a £15000 per annum family income benefit plan over 25 years, and die at the end of year 10, then your dependants will receive £15,000.00 every year for the remainder of the term i.e. 15 years (£225,000.00 in total). 

Critical Illness Insurance

This provides cover against the risk of developing a serious illness such as a heart attack or cancer. If you develop one of the illnesses listed in the policy, upon professional diagnosis, a tax free lump sum will be paid. The lump sum you receive is for you to use as you wish. Some policies will pay out an income instead of a lump sum. Payment of the benefit does not normally preclude you from working should you be able to do so. Critical illness policies can be linked to decreasing or level Term Insurance to achieve protection for a set number of years, for example, 25 years to cover a typical mortgage term.
The most common illnesses today are heart disease, stroke and cancer. The statistics speak for themselves. One in three people in Britain will have a cancer diagnosed at some time during their life. Every year, around 300,000 people have heart attacks. For 150,000 people, it is their first. Half of all heart attacks are fatal. Of those women who are diagnosed with breast cancer, 62% survive five years or more.
Today, we are far more likely to survive illnesses that may have been diagnosed as terminal a generation ago. While medical advancements have boosted our chances of recovery, a serious illness can still mean that our lifestyle or way of working has to change. You may go back to work, sooner rather than later, or you may have to change your career to one less demanding but during the illness, if you are without income or capital to hand, your finances could also become critical.
Even if you are single, without dependants, you may feel cover is unnecessary, but in fact it would be more important to you than life assurance... When you die life assurance is only of use to dependants.

Waiver of premium

This option means that the insurer will take over the premium payments 6 months after you become unable to work following an accident or illness. The benefits under the policy will be maintained free of charge to the policyholder during extended periods of disability. The waiver of premium claim stops when you are assessed as fit to return to work.
Waiver of premium is to be recommended as it protects the policyholder against the possibility that cover may lapse during a long period of illness when premiums may be unaffordable. If followed by death, this would mean that cover had been withdrawn at the very time it was needed. Waiver of premium usually adds around 3% onto the premium (per life).

Income Tax

Provided your policy is a qualifying policy the benefit paid on death or maturity is not subject to income tax. To qualify, a policy has to satisfy certain statutory conditions. These include the need to pay premiums at annual or shorter intervals for at least 10 years or until your earlier death.  We recommend where possible that life policies are written in Trust to obtain a quick payout and the benefit automatically excluded from your Estate for Inheritance Tax between spouses.

Business Owners

If the lender considers you to be a vital part of the business and the value of its security could be jeopardised in the event of your death or incapacity it will insist upon mortgage protection insurance so that repayment of its loan is guaranteed.   Sometimes this requirement is optional but it would be prudent to ask yourself the following questions.

• How would my family or partner cope with the affairs or daily running of the business in the event of my death or being afflicted with a serious illness?
• Without me being there would I want my partner or family to be saddled with the same mortgage commitment?
• Could I afford the expense of additional staff if I was no longer capable of looking after the business as a result of an accident or illness?

Fortunately the above information provides a number of different ways you can achieve protection against such unforeseen circumstances.

Property and Contents Insurance

If you already own a property you will understand the importance of having insurance cover. The building, whether your home, investment or business, constitutes a most valuable asset and should be covered against the risk of destruction by fire or damage from other risks such as storms or flooding and even in some circumstances against terrorism. 
When the property is held as security for the mortgage the lender will always impose a condition that the property must be insured with a reputable company and its interest noted on the policy. This entitles the lender to receive the proceeds of any claim which it can off set against your indebtedness. The amount of cover will be specified and your solicitor will be expected to satisfy the lender that cover is in place prior to releasing any funds.

You will also have the opportunity to insure the contents of your property and important personal possessions such as your furniture and jewellery against loss or theft, and ancillary risks such as legal claims against you by other persons. The range of cover can be very extensive and will normally include accidental damage to your possessions but not as a result of fair wear and tear. As most Insurers will agree to pay claims on a new for old basis It is very important to assess the cost of replacement carefully; if the aggregate value is seriously under value any individual claim made will be treated on an average basis and settled proportionately in relation to the level of under value.
Apart from property insurance, owners of Businesses and Commercial properties will need to give particular attention to other non domestic insurable risks connected with their trade or profession. This can cover a very extensive list which may include fixtures and fittings, stock, business interruption, goods and money in transit, trade credit, employers liability, legal expenses etc,etc. the list is endless.
ACL can provide comprehensive policies to cover most types of commercial property and business on very competitive terms. 

Assessing Your Insurance Needs

We are required by the Financial Services Authority (see Financial Services Information) to observe specified procedures before arranging your insurance. First of all you will be told by a qualified Advisor the level of service we have agreed to provide and what fees, if any, you will be charged; you will be given a document called an Initial Disclosure Document (IDD) confirming these terms. As part of our service we do not as a rule charge clients for arranging insurance. Before making a recommendation we are then required to carry out a Fact Find in order that we can advise you with the full knowledge of your circumstances. When you have decided on a policy you will have to complete and sign a proposal form. This form may ask about such matters as your age, occupation and health. You must answer all questions truthfully. If you fail to do so, it can, in some circumstances, mean that your policy will not pay out.

What if you change your mind?

Every effort is made to ensure your application for life insurance is made in the full knowledge of all its terms and conditions, but all these policies have a "cooling" off period (of at least 14 days). During this time you can tell the insurer you do not want the policy and receive a refund of any initial premiums you have already paid. With unit-linked policies it may not be the full amount you originally paid if the value of the units has decreased since purchase.

What you should do if you want to complain?

On rare occasions things go wrong and you might want to complain. You should in the first instance take up your complaint with us or the insurer. Your policy document will provide details of the insurer's complaint arrangements. The aim will be to ensure that your complaint will be thoroughly investigated at the right level.

If you are not satisfied with the way your complaint is dealt with, you can contact the Financial Ombudsman at:

South Quay Plaza

183 Marsh Wall

London E14 9SR  Tel: 0845 080 1800  Fax: 020 7964 1001