Deck 2 Flashcards
Universal Credit
Per household
2024 full rollout
are aged 18 or over (with some exceptions for 16- and 17-year-olds);
are on a low income or out of work;
are, or have a partner who is, under state pension age;
have less than £16,000 in household savings
SSP
4 days
8 weeks to 28 weeks
incap benefit when ends
PIP
daily living and mobility components
3 - 9 months
16+
Carers
The carer must be aged over 16, spend at least 35 hours per week as a carer,
be earning no more than a certain amount and not in full-time education
SMI
second charge loan
loan not a benefit
min 100 payback
Where the claimant has been receiving SMI for at least 26 weeks but they
are about to start a job that will make them ineligible, they can claim
mortgage interest run-on. This pays the benefits for a further four weeks,
and straight to the claimant rather than to the lender
52 week linking rulle
only pays the mortgage
9 consecutive Universal Credit payments, or
39 weeks after claiming for another qualifying benefit,
but pensioners receiving Pension
Credit have no waiting period
200k or 100k for pensioners
Quantifying the need
The process for identifying the current shortfall in financial provision in the
event of illness or disability is, in essence, the same as that for calculating the
shortfall in the event of death
Budgetary considerations
A proper fact find involves a detailed discussion of current income and
outgoings
A joint-life plan is cheaper than two single-life plans.
Protection is cheaper the shorter the term of the plan
Mortgage-related plans can be kept separate from other plans to minimise
cost (and can be arranged on a joint-life basis and to correspond to the
mortgage term)
Decreasing term assurance is cheaper than level term assurance
Relationship breakdown
Joint-life plans may need to be re-evaluated
and even replaced with single-life plans.
The two parties may still have some joint
financial interests, notably in ensuring
the protection of children. Conversely,
they may want a complete break, with the
severance of all financial ties
The nature of protection needs may change
depending on the arrangements made
between the two parties, eg if one party
takes sole responsibility for any children
Where protection was provided through
one party’s pension plan or where their
employer provided sick pay, income
protection or medical expenses cover, the
gap created by the loss of this cover may
need to be filled by additional personal
arrangements
If maintenance payments are agreed, the
party in receipt of the payments has an
insurable interest in the life of the paying
partner and they may wish to ensure their
payments are protected in the event of
death or illness
Cancelling plans
While it is permitted to advise a client to
cancel an existing protection plan and
replace it with a new plan, eg at a cheaper
cost, this is an area where the utmost care
must be exercised.
The new plan must offer cover that is at least equivalent to the
plan being cancelled. This is crucial when
considering replacing a CIC plan
ICOBS 5: Statement of demands and needs
ICOBS 5 states that before an insurance contract is put in place, the insurer
must specify the customer’s demands and needs based on information from
the customer
Application for land reg
2 months
Transfer of land
30 days
Cannot use execution only
Right to buy
Raising funds for debt consolidation
Sale and rent back
Dialogue with the firm during the sale
Shared equity agreement
Vulnerable
Higher lending charge
75-80%
Endowment plan reviews
2 yrs
