Three point nine million

Three point nine million.

Is it the miles a London tube train runs before serious refurbishment?

Or the golden parachute a chief executive of a bank when shareholders have had enough after a few years of highly paid incompetence?

All reasonable guesses, although it's none of the above.

Instead, it's a recent count of pet insurance plans in the UK.

Nearly four million households spend a typical £250 a year on covering their animals against a number of perils, the most important being the cost of a serious visit to the vet.

Now compare that with people protection. Starting from a higher base, it's obvious human cover could not grow even five-fold over the same period.

I recently read that “only 56% of owners take out pet insurance”. I love that “only”.

If “only” 56% of people took out some sort of personal cover to look after themselves as well as they look after their pets ( the wellbeing of whom in fact is ultimately down to the health of the premium payer.)

Remember that 3.9 million? It's roughly 10 times the number of people who have taken the step to protect their income with what is known as Income Protection.

Assuming the self-employed are the natural income protection consumers as their ‘health is their wealth’ so to speak, that means just one in 10 are covered. In fact anyone who is self employed could need short term cash help for injuries preventing their work.

Ah, but I can hear you saying – too expensive.

Well there is another way of looking at premiums – they are cheaper than a payday loan or a visit to a pawnshop. These have mushroomed, taking up empty retail space far faster than even bookmakers, pound stores, chicken shacks and charity shops – as well as dominating a fair slice of online space.

Income protection at around £20 a month is a far sight cheaper route to £1,500 a month than borrowing at thousands of percent a year as well as being better for all concerned than selling or pawning the wedding ring.

And in case you are wondering whether I practice what I preach (?) – yes , I have had my income protected since I took out my first mortgage in 2002.

Want to find out a bit more?  Feel free to get in touch.

 

Bank of Ireland

Bank of Ireland is writing to 13,500 of its buy-to-let and residential customers on tracker mortgages to warn them of plans to more than double the base rate differential it charges them.

Around 7 per cent of Bank of Ireland UK mortgage customers will be affected by the changes to the interest rate differential, over 50 per cent of which are buy-to-let holders.

For buy-to-let borrowers, the rate will jump from Bank of England base rate plus 1.75 per cent to rate plus 4.49 per cent from 1 May.

For residential borrowers, the increase will be applied to in two separate stages. From 1 May, it will rise from base plus 1.75 per cent to base plus 2.49 per cent. From 1 October, it will then be subject to yet another increase, taking it to base plus 3.99 per cent.

A statement from the bank argues the increases reflect higher funding costs.

It says: “This change reflects the significant increase in the cost of funding these mortgages since 2008 and the need for banks to maintain greater levels of capital.”

One industry commentator remarked “This is a shocking move by Bank of Ireland. It shows a blatant disregard for the fortunes of its customers. It is all very well offering to waive redemption penalties for those who can move but, for those who cannot, it creates unnecessary issues and will surely breach boundaries of the FSA’s Treating Customers Fairly initiative.”

If you are concerned about this , please feel free to get in touch.

As always , thanks for your attention.