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July 26, 2007

We don’t have a mortgage so do we need life assurance?

In most but not all circumstances life assurance is only necessary when you don’t have sufficient capital or income to survive without the deceased being around any more, although “assurance vie” can also be of great benefit when dealing with an inheritance tax bill especially if you are intending on leaving an inheritance to a non blood relative. The average thirty something couple with a couple of kids are unlikely to have sufficient capital to deal with the prospect of one of the parents dying. For example, if the father earns €50,000 each year and the spouse, whilst trying to look after the children, manages to work a few hours a week. However should the father die, she is now €50,000 a year worse off. Does she need life assurance? I think we can all see what the answer is going to be. And what if the mother dies before the father? Father now has to arrange for daytime child care as well as covering the costs of cleaning, cooking and laundry. So there is also a strong case for covering the spouse as well.

 

 

The fact remains that very few people are planning on dying right now so why introduce another bill? Let’s look at some numbers. How much does it cost to cover an average family car for a 35 year old? Before being bombarded with quotes, let’s say it’s €500 per year. What benefit is being covered? Around €15,000, so for €500 p.a. one receives €15,000 cover. How much buildings insurance and contents cover could you get for €500 p.a.? I will guess at €150,000 buildings and €50,000 contents. This seems to be a better deal than the car at least. With both of the examples above, the choice is not really given as you must have car insurance and most people want the security of having buildings and contents insurance. Now let’s take our couple and see how far the €500 p.a. will go to give them some life assurance. Assuming a fixed term of 20 years until their children are off their hands, this could buy both of them cover of over €130,000. In reality, this probably is not enough to cover their needs but just goes to show what benefits apply to different types of policy.

 

 

There are a number of different types of life assurance policy funded by regular or single payments. The cost need not form a large part of your budget and should be seen as essential as the premiums you pay on other insurances as your car is unlikely to pay any tax bill for you!

 

Each individual case is different and you are strongly advised to seek the help of a specialist in this field. At Spectrum IFA Group, our advisors are trained in this area and will be able to provide you with free, impartial advice, relevant to your particular case.

 

Financial Expat is registered and licensed in France under the European wide “umbrella group” of TSG insurance Services (The Spectrum IFA Group).

TSG Insurance Services S.A.R.L.
Siège Social: 34 Bd des Italiens, 75009 Paris
« Société de Courtage d'assurances » R.C.S. Paris B 447 609 108 (2003B04384)
Numéro d'immatriculation 07 025 332 -
www.orias.fr

 

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What’s the Difference between a French and UK Mortgage ?

The types of mortgages available from French lenders are very close to those offered in the UK, with both offering fixed and variable interest rates. The interest rate payable is normally decided by how much you need to borrow compared to the value of the property you are buying. Interest rates are set by the lenders, which are in turn influenced by either Euribor for French lenders or the Bank of England base rate for UK lenders. But normally in France you will find that access to more competitive mortgage deals will be helped by a larger deposit.

As with the UK, the property is used as security for releasing funds, and lenders have set criteria regarding eligibility requirements for obtaining a mortgage. Generally you will also find with French mortgages, variable rate loans tend to have no early redemption penalties, whilst fixed rate loans tend to charge an early redemption penalty.

Each individual case is different and you are strongly advised to seek the help of a specialist in this field. At Spectrum IFA Group, our advisors are trained in this area and will be able to provide you with free, impartial advice, relevant to your particular case. Financial Expat is registered and licensed in France under the European wide “umbrella group” of TSG insurance Services (The Spectrum IFA Group).

TSG Insurance Services S.A.R.L.
Siège Social: 34 Bd des Italiens, 75009 Paris
« Société de Courtage d'assurances » R.C.S. Paris B 447 609 108 (2003B04384)
Numéro d'immatriculation 07 025 332 -
www.orias.fr

 

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July 25, 2007

Is your pension going to live up to your retirement plans, or are you heading for shortfall ?


The first thing to do, if you have not done so already, is to get a UK State Pension forecast telling you, in today's money, the State Pension you have already earned in the UK, and what you can expect to have earned by State Pension retirement age. If you are still classed as a UK resident you can request a forecast on-line from the Pension Services website  www.thepensionservice.gov.uk  Otherwise you will need to go to the HM Revenue & Customs website  http://www.hmrc.gov.uk/cnr/osc.htm#5 to request a forecast.

 

You may also have been in a company scheme in the UK or be employed in France in which case you’ll receive a pension at retirement which is normally based on your length of service and salary level. However unless you have been employed by the same company and in the same pension scheme for forty years or more, this is still likely to fall short of two thirds of your final salary.
This should roughly give you an idea of what you could expect from your pensions, but the question is does it provide the standard of living you want for your retirement!
Each individual case is different and you are strongly advised to seek the help of a specialist in this field. At Spectrum IFA Group, our advisors are trained in this area and will be able to provide you with free, impartial advice, relevant to your particular case.
Financial Expat is registered and licensed in France under the European wide “umbrella group” of TSG insurance Services (The Spectrum IFA Group).

TSG Insurance Services S.A.R.L.
Siège Social: 34 Bd des Italiens, 75009 Paris
« Société de Courtage d'assurances » R.C.S. Paris B 447 609 108 (2003B04384)
Numéro d'immatriculation 07 025 332 - www.orias.fr

 

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July 24, 2007

Welcome Message...

Welcome to Financialexpats blog !

The purpose of our blog is keep all of us Expatriates living in France up to date with any changes in the law that could have an effect on our community, as well as passing on some basic information about financial life in France.

I hope this blog can answer some questions that you were struggling to find an answers for, but please don't hesitate in sending me an e-mail if you cannot find what you were looking for.

Steve 

  

 

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