Are you at Risk? Part 2 – Permanent Health Insurance Explained!

After my last Blog on Critical Illness Cover, I thought I would do a follow up explaining another type of insurance that I get asked about frequently – Permanent Health Insurance (PHI)

I found this quick guide on www.adviser-hub.co.uk

What is PHI?

Regardless of whether you are single or have several financial dependents, if you are suddenly unable to work, your income will disappear completely – and this will have a direct impact on both you and those around you.

Permanent Health Insurance (PHI) is less well known than life assurance but is just as important. In the event that you have an accident or contract a serious illness and are unable to work, PHI is designed to replace the income you lose. This is typically, up to three quarters of your gross income (ie: approximately your net take-home pay), minus any state benefits for which your situtation might mean you become eligible.

This income is paid until retirement age, until the end of the policy term or until you are able to return to work, whichever comes first. Consequently, whilst you are rehabilitating or coming to terms with changes in your life, you can be reassured that your financial position will be unaffected and that the bills will continue to be paid.

This type of policy can be of particular benefit if you are selfemployed, ie: when your job does not come with any sick pay or group pension & protection scheme benefits (of which this form of cover can sometimes be a part).PHI has a reputation for being expensive, however, it comes with a choice of deferral periods and the longer that deferral, the lower the risk. Therefore, if cost is an issue, simply extend that deferral period beyond 1 month to perhaps 3, 6 or even 12 months, and the costs come down significantly. If you receive minimum sick pay from work or savings which can get you
through the short term, this cover can be very cost-effective.

Here at Reeves Independent we would gather a full fact find to fully understand your whole situation and research appropriately from this. This would then enable us to present to you the best options in respect to protecting the wellbeing of you & your family in the unfortunate event of ill health.

For a FREE no obligation chat about your requirements then call 0191 281 9862 or e-mail info@reevesifa.com NOW!

Reeves Independent’s Technology Portfolio!

Here at Reeves Independent we have just undergone our quarterly review of our Fund Portfolios. Over the next week we will be Blogging about the research the team have undertaken & explain the reasons behind their construction. Firstly we will talk about the Reeves Independent Technology Portfolio.

According to leading fund managers opinions, Technology stocks are set to out perform most equity markets, hence why we have constructed this as a specialist portfolio.

Technology companies are seen to have high profits, good cash flows & cash in the bank. There is demand for their products & services that is likely to continue & it’s considered that these companies can maintain growth even in times of economic uncertainty.

Access to a selection of specialist funds is available through the Reeves Technology Portfolio. This includes the funds managed through Axa Framlington & Henderson (This was our Fund of the Week last month  https://www.reevesifa.com/?p=336) together with a tech tracker fund through Legal & General.

Framlington & Henderson have different feelings about where to invest within the markets. Framlington being very keen on Software & Hardware sectors with over 70% being invested in that sector & Henderson have a more diversified covering of sectors. The Legal & General Tracks an index.

The bulk of the investments within the portfolio are invested with the USA & all 3 funds have ‘Apple’ as the biggest Individual holding.

These funds are for investors looking for higher returns that can afford and are willing to experience higher levels of volatility. Advice should always be sought and this should not be seen as a general recommendation. One should always remember the .com bubble of 10 years ago & tread with caution.

Further details about how to access this portfolio, these funds and the Reeves Independent Wealth management service are available by calling 0191 281 9862 or e-mail info@reevesifa.com NOW for a FREE initial chat!

What is our ‘Risk Assessment’ Process?

Here at Reeves Independent providing our clients with top quality customer service is a priority. When it comes to clients investments it is vital that we work closely with them to ensure they are invested appropriately. Below highlights the steps/questions we go through before investing;

  1. Firstly we would ask you describe your ‘attitude’ towards taking financial risks right now? Is it Balanced, Cautious or Aggressive?
  2. We then attempt to measure your attitude on a scale of 1-10. The reason behind this is to see if this confirms or contradicts you answer to question 1.
  3. Thirdly we assess how ‘strong’ or how ‘weak’ your confidence levels are in the current economic environment.
  4. The next step is to try & match the above to a portfolio of investments ‘carefully’ selected to match both the ‘risk profile of the client’ & the ‘current market expectations’
  5. Having decided on the asset allocation for your portfolio we will then have a detailed look at the investments you’ve chosen to give you the best opportunity to produce returns required for you

This process is followed for all ‘new clients’ & during client’s quarterly reviews!

Undergoing this process regularly has highlighted the following to us as a company;

  1. Clients opinions will change, therefore working with them & making sure they feel comfortable with the investments is imperative
  2. There is a time for the cautious investor to invest more speculatively & for the speculative investor to invest more cautiously
  3. You don’t have to make all your growth at once, many variables should be taken into account before making your decisions

If you would like to speak to someone about the Reeves Independent Portfolio Management Service please contact us NOW for  FREE initial chat  on 0191 281 9862 or e-mail your enquiry to info@reevesifa.com

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