You saved up enough for a deposit; you’ve been shopping and spending wisely on trinkets and innovative decor and your new house is now starting to feel more like a home every day. If you’re moving in with a partner and are at last sharing the communal space you’ve always dreamed of, then the last thing you’ll probably want to do is go over the administrative black-cloud that is life insurance.

You may believe in sharing everything with each other, but when it comes to life insurance, it’s actually a better idea to go it alone, or to phrase it in couple terms – take out a his and hers life insurance.

A shared policy is a very good idea for the couple who have children, to cover mortgages and a variety of other loans that inevitably bulk up over the years. But, bleakly, this policy can pay out only once at the first death of one partner.

The joint insurance policy is efficient enough, and can provide and support and remaining family or loved ones; paying off mortgages, and loans. But without the children or debts, it could be a better idea to buy separately if you don’t have such beneficiary weight.

Buying separately will unquestionably cost you more money each month, but like many investments, it’s far more productive in the long-run in that potentially you receive two payouts instead of one. Individual policies also means that neither one of you will be left uninsured should the critical occur. It also – on another dreary note – makes it pretty easy to slice the administrative hassles in half should there be a divorce: a joint policy can’t be split.

Browsing around online can secure you a deal that will give you both peace of mind, knowing that the other will never be uninsured when you leave them behind. Asda Finance is a good place to start checking out life insurance, offering you an online form to fill in so you can have a review and a quote in moments.

It’s a wise move to shop around online so that you can compare the best deals – but as with all products, do make sure you know what it is you’re buying, and exactly what is you need as a consumer. Legal and General is another good website, and they also offer the immediate quote on travel insurance and other investments.

The RBC Insurance website might also be a handy comparative source, for an overall guidance on policies for all types of insurance. This slightly less-than-romantic look at couple-life is actually very wise and can be as hassle-free as you make it; it can make living together all the more comfortable.

It’s generally taken for granted by people in the finance industry that everybody understands the terminology surrounding loans, but if you’ve never looked into getting a loan before then it’s only natural that the process can seem confusing. However, if you’re serious about getting a loan then you shouldn’t be put off by uncertainty – once you understand common loan terminology then you should be able to work out what to look for from money lenders.

Secured vs. Unsecured

One of the first things you’ll need to know when applying for a loan is the difference between secured and unsecured loans. Secured loans generally cover larger sums of money (e.g. Asda Finance’s Homeowner Loan, which covers up to £150,000), and require you to put up some asset as collateral, such as a car or a property. Unsecured loans are also known as personal loans, and don’t require any collateral. Because of this, the interest rates are usually higher on unsecured loans.

Collateral

This is a term that will come up immediately if you are getting a secured loan, as you will be asked for collateral as a guarantee to the lender that you will repay the loan. Collateral is an object of high value, which is why secured loans are offered to homeowners, who can use their property as collateral.

Interest and capital

When you’re comparing different loans, one key element is that of interest and interest rates. Basically, interest is the additional charge you pay for borrowing money, whereas capital is the amount of money that you borrow and will then repay. Interest rates are expressed as a percentage, and are what you will pay on top of the money you borrowed. So, an interest rate of 4% means that you’re paying back an additional 4% of the loan amount.

APR

This is the annual percentage rate, and is the annual cost of a loan expressed as a yearly rate. For example, the 7.7% APR on a personal loan from Alliance and Leicester means that if you were to borrow £7,500 over 60 months (without insurance) the monthly cost would be £150.21, and the total amount payable would be £9,012.60.

CCJ

Many adverts for loans use terms like ‘CCJ’ without considering that people may not know what they mean. Basically, if you are looking into taking out your first loan you probably won’t have to worry about CCJs, because a County Court Judgement is only received when a court orders you to pay a debt. If you do have outstanding CCJs then you’re less likely to be approved for a loan.

Equity

This is a term you are most likely to encounter if you’re applying for a secured loan. Put simply, it refers to how much of your property you own as opposed to the amount that you are still paying for with a loan or mortgage. You are in Negative Equity if your property is worth less than your debt to your lender.

Rates quoted are correct at the time of writing (13.04.08) and may be changed at the discretion of the product provider.

For anyone with a family, taking out life insurance is essential. There are many different life insurance offers on the market, but the principle is the same across all of them – in the event of your death your dependants will receive a sum of money as a replacement for your earning power.

If you don’t have children and are single, you probably won’t need life insurance, unless you are caring for parents who don’t have a sufficient pension to get them through. It’s worth bearing this in mind as it won’t stop brokers and IFA’s – always on the hunt for big commissions – from trying to sell you a policy. Be wary of organisations trying to sell you life insurance when you don’t have a very good reason to take it out.

Summary of Cover

-You decide on a sum insured and a term of years from the outset. The sum insured remains constant throughout the term.

-The sum has no investment content.

-If you die during the term then the sum insured is paid out.

-Can be set up as a single life plan, insuring one life for a predetermined sum and term, or as a joint life first death plan, where the sum insured is payable on the first death.

-Critical illness or terminal illness benefit can be added to most plans, wherein the sum is paid in the event of illness.

-As soon as the sum insured is paid out the plan ceases. If you survive the term then nothing is paid out and the plan ceases.

Life insurance gets more expensive the older you become. If you set a fixed sum – level term assurance – you will know exactly the figure your beneficiaries will receive. The downside of this is the fee will become less valuable with inflation, but at least you won’t be stung for a huge premium when you’re older.

You may decide that you want to invest your money in another scheme for the future benefit of your loved ones. There are a a multitude of life insurance providers to choose from and you'd be well advised to scout around for the most competetive deals; ASDA Finance offer good value life insurance from only £6.85 per month. It's well worth checking out a financial comparison site like uSwitch or beatthatquote.com where you'll be able to compare all manner of financial products from loans to life and car insurance.

Every year has its own special days: Christmas, Valentine’s Day, birthdays, car insurance renewal day... While the latter might seem completely out of place in that list, it’s a simple fact that once every year car owners must update their car insurance, and it can often hit their wallet hard. Thankfully, due to the internet, finding the best car insurance quote has been made much easier. However, before you head onto the world wide web, here’s a few pointers to get you started.

Make sure to ask yourself a list of this checklist of questions to you're getting the right car insurance cover:

What is the fundamental nature of the policy? Is it comprehensive, third party, fire and theft, or third-party only?

TPO – Third Party Only. Whether you have a brand new car or have recently bought a used car online through a site like Fish4 or EBay, TPO is the basic insurance requirement by law. It usually covers your legal liability for:

• injuries to other people
• damage to other people's property
• accidents caused by your passengers or a driver named on your policy

Third party, fire and theft (TPFT) - provides the same level of cover as third party cover, but protects you against damage to your vehicle from fire, or theft of the vehicle, as long as you're not at fault.

Comprehensive cover

The most complete level of car insurance cover, usually providing cover for:

• injuries to other people
• damage to other people's property
• accidents caused by your passengers or a driver named on your policy
• the use of a trailer, while attached to your car
• fire damage and/or theft
• accidental damage to your own car
• medical expenses, up to a stated limit

What is the total policy excess in the event of claims? What about the excess for windscreen claims?

The excess is the amount of money you will have to pay yourself before the insurer contributes for additional repairs. In the case of a low premium the excess is likely to be on the high side. You might find yourself forking out of your own pocket for less expensive type claims such as windscreen repairs that could cost less than a high excess.

How many windscreen claims can I make before it affects my no claims bonus? Can I make an unlimited number of windscreen claims?

Does the insurance cover include legal expenses? You may be able to claim back your uninsured losses from the driver responsible in the event of being in an accident that isn’t your fault.

Does the insurance policy include a courtesy car? Is it offered if your car is stolen or written-off as not all comprehensive policies include these by default. Do you have to pay extra to insure the courtesy car? 

Is the full car insurance cover extended to driving in Europe for the period I asked for? Most car insurance polices cover overseas cover as standard nowadays, but a few insurers make you pay extra.

Is the no claims bonus protected and how many claims are you allowed under the scheme before your no-claims bonus is affected?

For each year you hold a policy without making a claim you are entitled to a year's no-claims bonus, subject to a maximum (usually up to 5 years). This reward reduces the cost of your car insurance premium for the following year and range from 30% for one claim free year up to 60% or more after four or five years. Also referred to as a no-claims discount (NCD).  Clearly you’ll want to protect such great savings as much as possible.

For a range of car insurance quotes, take a look at Beatthatquote.com. Meanwhile, Yes Insurance comes as a recommended individual supplier of cheap car insurance.  Whether you’re a new driver, or in need of a new policy, it’s certainly worth checking out both of these sites on your search.

As another high profile British bank announced a change in its mortgage policy in the wake of the global credit crunch, signs indicate that things will get worse before they get better.

The latest move has focussed around attempts to reward individuals who are in the position to offer higher deposits on their houses. The Halifax will now reward prudent borrowers who pay 25% deposits. This, of course, penalises many first time buyers who simply cannot afford to put down that kind of money on a first house, but take a look at this article for more.  

Even though analysts are predicting that the average housing price across the nation will drop – though they cannot predict by how much – the cost of buying a home is still going to be out of range of the average first time buyer. The Government has recently announced plans to develop ten sites with ‘affordable’ and ‘green’ housing by 2010, but what state the economy will be in at that stage is very difficult to predict.

More than likely, these things will sort themselves out, as they always do, and for once the winners are unlikely to be financial institutions. The banks have to protect themselves against crises such as those experienced in the American sub-prime lender market, and therefore they will offer loans and mortgages that pose less risk to them, but also less profit. The losers will probably be those at the bottom of the scale, who cannot afford to get onto the ladder in the first place.

Things are not altogether gloomy though, most financial institutions continue to offer a wide range of services. Some of the best mortgages can be found through NatWest, while Alliance and Leicester also offer some top mortgage rates. For those that look after their money and are prudent the system is still viable, though perhaps more difficult to get into.

One recent announcement suggested that a high street lender had been offering 150% mortgages, which unsurprisingly lead to large numbers of people defaulting on their agreements as they could not afford to meet the terms of their contract. The global crunch is already putting a close on these kind of offers, which is undeniably a good thing, if individuals have to apply for mortgages at those kind of rates then they are clearly not in a stable enough position to buy a home, whilst it is indicative of vastly over inflated housing costs, it is simple practicality not to stretch yourself beyond your means.

In recent months the banks have suffered for failing to be practical, as have the individuals who have defaulted and lost their homes, but any events that result in more prudence, particularly as far as personal finances are concerned, has to be a good thing.

With the home insurance market becoming increasingly competitive, many companies will seek to draw your custom by advertising ‘the best’ deals. However, there are often hidden extras attached that could leave you under-insured and paying more. Here’s how to avoid being conned when you take out a home insurance policy.

Avoid ‘tie-ins’
When you take out a mortgage on your home, some mortgage lenders will include a compulsory home and mortgage insurance policy. These are likely to be far more expensive compared with similar policies, and may cost you up to £150 per year in increased premiums. Often, your mortgage company will charge you a fee if you choose to insure elsewhere – but this is likely to be less than you would save by switching home insurers. When choosing your home insurance, you should always shops around. Often, you will find the best rates on comparison websites like uSwitch, or with large home insurers such as Churchill. Always get three quotes before committing to a particular policy.

Beware ‘non-disclosure’ penalties
‘Non-discloser’ is when you fail to mention to your insurer a fact that would have affected the outcome of your insurance application, for example by increasing your premium or by leading to a refusal to insure. By failing to disclose even a minor fact, you may find that your insurance policy is rendered invalid. Around one in ten insurance claims are rejected for non-discloser, but if you have left out information innocently or inadvertently then the company is more likely to be lenient.

Don’t buy more than you need
Take out the level of home insurance that is appropriate for you; not too much and certainly not too little. Some home insurers may encourage you to take out more insurance than you need – if you have no dependents, for example, then a policy which includes life insurance is probably unnecessary. Make sure you find out what cover a policy offers and compare prices accordingly. 

Does you policy really cover you?
Some unscrupulous insurers may sell you a policy which you are not entitled to claim on. To avoid this, ask them to confirm in writing that your particular circumstances are covered. By sticking to reputable insurers, such as Direct Line or ASDA Finance for home insurance, you can also be sure that you aren’t being ripped off.

Save with multiple policy discounts
Find out with your home insurer offers discounts to customers who maintain other insurance contracts under the same roof. You may find that you can save by taking out health or car insurance with the same company. Make sure you compare other prices, though, before committing to this kind of deal.

With an increasingly diverse range of money-lending services available, taking out a loan can be a confusing business. What is a personal loan anyway? Is there any difference between a personal loan and a secured loan? Most importantly, which type of loan is the right one for you? To help you navigate around the difficulties of money borrowing, here’s a short guide to the most common terms used by banks and loan companies.

Personal Loans
‘Personal loan’ is an umbrella term which covers all loans made to individuals as opposed to companies and businesses. These can include car loans, consolidation loans or home improvement loans, and vary in size from a few hundred pounds to several thousands pounds. Loans for personal finance matters are also referred to as ‘finance loans’. Unless very large, personal loans are generally taken out on an unsecured basis – this means that it’s possible to take out a personal loan even when you can give the lender no specific security. The term can also cover higher value loans or loans where security is required because the borrower has a less than ideal credit history. For all of these kinds of loans, take a look at RBS for some good rates.

Secured loans
A bank or lending company which agrees to lend a large amount of money to an individual will generally ask for security – this type of arrangement is therefore termed a ‘secured loan’. Secured loans will usually only be offered to homeowners who have sufficient equity in their house to cover the value of a loan. Because of the safety this affords to the lender, it is generally possible to get secured loans of a higher value and with lower rates of interest than in the case of unsecured loans. Like mortgages, secured loans are also usually repaid over a longer period of time, keeping regular payments down. ASDA Finance currently offer homeowner loans of up to £150,000 – a great way of releasing large amounts of equity in your house.

Mortgages
A mortgage is a loan that you take out to buy a property. The two main types of mortgage are called ‘repayment’ and ‘interest only’; the first type requires you to make monthly payments for an agreed period of time until the mortgage is paid back, while the second type involved paying back only the interest with your monthly instalments. If you choose an interest only mortgage because of the cheaper monthly repayments, you must take into account that the original loan amount will still be owed to the lender at the end of the repayments period. To work out how much you would be able to borrow for a mortgage, take a look at Alliance and Leicester’s mortgage calculator.

Student loans
Student loans differ from personal loans because they generally carry a lower rate of interest. The size of the student loan that you may apply for depends on the income of your parents, the location you are studying in, and a number of other factors such as whether you suffer from any disabilities. The interest rate is tied to inflation, and students are not required to begin paying it off until they are earning over £15,000 per year. In addition, the debt is cancelled if it has not been repaid within 25 years of repayments beginning.  The government’s website, DirectGov, is one of the best information sources for this type of loan on the Internet.

The level of personal debt in the UK has grown astronomically since the turn of the millennium, and it now stands at an incredible £1.3 trillion. How bad the debt levels have come for you personally may be hard to judge. Read through some of the red flag warnings which may help you to decipher if you should seek outside assistance to deal with your debt.

• Using Credit for Necessities – If you have found you need to finance the trip to the grocery store by using your credit card because you have no cash, you are already on the road to debt trouble.
• Too Many Credit Cards – As easy as it is to get credit these days, no doubt there are people who have more than just one or two active credit cards in their wallets. You are facing some serious trouble if you have more than two cards in your possession and each carries a monthly balance – or worse, you have each maxed to the limit or over the limit.
• Paying the Bare Minimum – If you consistently find that you are making the minimum payments on your credit card and other bills each month, you are at risk of falling so far behind you may never catch back up on yourown.
• Borrowing from Peter to Pay Paul – If you are using your credit cards for cash advances or in general to pay off other debt including other credit cards, you are heading for financial disaster.
• Acting Like an Ostrich – If you stick your head in the sand at the mere thought of looking over all of your credit card statements, or find yourself in denial about how much money you actually owe, you are likely to be in need of financial counseling or other assistance.
• Bill Collectors Come Acallin’ – If you come home to a constant string of voice mails from the credit card agency or third party bill collectors, your credit score has already been affected. These collection calls should not go ignored. A legitimate counseling agency can assist you in dealing with the barrage of calls.
• Living in Denial – If you find you are lying to others like your spouse, in addition to yourself, about the size of our debt problems, you are facing not only a financial crisis but perhaps a personal one as well.
• Depleting Your Savings – If you find you have to start taking funds from your savings or investments just to make the monthly ends meet, you are placing your financial future in jeopardy.
• Continuous Charges – If you are aware of your credit situation but continue to charge more money than you are making in payments on your redit cards, your debt could triple in size before you know what happened.
• Accepting New Offers – If, in addition to a mounting pile of debt and carried balances, you are still signing up for credit cards with the intention of using one to pay the others, you are facing years upon years of an uphill battle against the credit companies.

If any of these 10 red flags strike a cord with your situation, it is never too late to get back on the right track. While it can be overwhelming and embarrassing, there are many more people in the same boat who are going through the same situations. It is imperative for both your sanity and your credit score that you handle these financial difficulties immediately before it spirals out of control. If you feel you can not handle the situation alone, consult with a credit counselor in your state and take the steps you need to get back to a healthy credit status.

One of the best ways to deal with excessive credit card debt is to pay it off by using a personal loan. The rate should be lower than that on your credit cards, and then you only have to focus on paying off one creditor a month once the debt has been consolidated. For loans, see RBS.

Though there have been numerous theories suggested as to the causes of the recent credit crunch in the global markets, many people agree that the main cause of these potentially disastrous economic developments was the subprime mortgage crisis that unfolded in the United States in 2007. However, many people remain unaware exactly what this ongoing crisis entails.

Increases in house prices in the United States since the last economic recession led lenders to make higher-risk loans, such as to people with low credit ratings or low incomes. Such activity is referred to as subprime lending. On the other side, borrowers were encouraged to take on mortgages, both by the trend of rising house prices but also by the incentives being offered by the lenders. So keen were the mortgage lenders to grant such loans to people that they essentially borrowed money themselves to be able to lend people the money. Such loans were made and taken based on the mistaken premise that the upward trend would continue. When the positive trend did not continue, individuals and the global markets were thrown into a serious financial crisis.

As a result of inflation, 2007 saw an increase in interest rates, which meant mortgage payments increased as well. In cases where the loan had been made inappropriately, and where the lender had taken a significant risk, such people struggled to repay their debts. This was further compounded by the fact that for many borrowers the two-year low interest introductory period granted on many mortgages was expiring, making it even more costly. An increase in people defaulting on their mortgage payments followed. The US housing boom was over, and house prices started to fall. Here the situation snowballed, as the fall in the housing market resulted in further mortgage problems. Many loans were no longer secured, and thus not only mortgage lenders but also banks were forced to write off large debts. Obviously, this made them reluctant to lend money, particularly not as cheaply as they had done before. The result was the credit crunch which now affects the US economy, and which has spread elsewhere.

Those primarily affected were those that had made loans while retaining significant risk, as borrowers were unable to repay their debts. Northern Rock was one such institution, which made many risky loans and was left with a significant funding gap as the crisis unfolded. Ordinary people were affected in that it became much more expensive to borrow money, as the market lost its liquidity. This crisis, which resulted from over-confidence in the markets, has lead to a scenario of supreme cautiousness on the part of financial institutions.

The subprime mortgage crisis has resulted in a global economic crisis, and everybody has the potential to be affected in numerous ways. Alliance and Leicester provide information on loans and mortgages, as well as some of the best rates from UK lenders.

In today’s compact society, with space at a premium, the idea of a tankless water heating system is obviously very attractive. A conventional boiler heats water continuously, even when you don’t need it, whereas a combination boiler heats water as it passes through, thereby using less unnecessary energy. They also take up less space, so are particularly suited to smaller houses and flats.

A combi boiler is extremely reliable. You’re less likely to have to fork out on repairs and maintenance, although, as with any boiler, an annual service is a good idea if you want to save money in the long run.

The installation of a combi is a lot cheaper than a tank system. There’s not as much kit to install and therefore less labour to pay for. The unit itself uses fewer parts because it is so compact.

There are many benefits to choosing a combi boiler. Once installed, they are very cost effective to run, providing unlimited amounts of hot water whenever you need it. Because they act on demand, you only pay for the water you are using, making them cheaper and more energy efficient than a conventional boiler. Less energy means less CO emissions, so the combi is better for the environment.

There are a range of combi boilers on the market, including Saunier Duval , Vaillant and Potterton. These should all be fitted by a CORGI registered engineer who can offer advice before you buy as well as the installation itself. Purchasing boiler cover is a smart move if you want to avoid hefty repair costs in the future, although a combination boiler will improve your chances of remaining free from breakdowns for a few years, as they are made with high quality materials with the utmost durability.

British Gas are among those companies who offer new boiler purchase, installation, maintenance and Homecare insurance.