8Apr2020

Saving money during tough times

Who needs life insurance cover in a pandemic?

The team at Life Insurance Cover want to keep you up to date with the latest information, advice and offer our support during this worrying lockdown situation.

The coronavirus pandemic sweeping the globe has everyone worried about finances. Saving money on life insurance and other household outgoings for now and the unforeseeable future will help people through these worrying and challenging times. Rather than talk about the importance of life insurance, we thought we would concentrate today’s blog on how we are all in this crisis together.

More importantly, how we can control our finances to ensure we get through to the other side.

Did you know that the UK Government is doing a great deal to help people impacted, by paying 80% of the salary of employees affected by the coronavirus? The measures apply equally to those who are self-employed, with 80% of average profits over the past years paid by the Government up to a maximum of £2500 per month.

As far as paying the mortgage, a worry for most people regardless of pandemics, the Government has put in place measures to assist those affected by applying a three-month “holiday”. For renters, if you fall behind in rental payments, your landlord is not permitted to evict a tenant. Government legislation specifically prevents evictions due to non-payment of rent during the crisis.

When it comes to car insurance, even if you are not driving, you still need to have insurance for your vehicle. If this is financially difficult, there is the option to declare it as off the road with a SORN, (statutory off road notice.) For the best advice look at the DVLA website.   For vehicles with an MOT due from 31st March, the Government has extended all MOTs due from this date for six months to prevent any possible exposure to the virus.

For those in certain types of business, the coronavirus has significantly had a negative effect with bars and restaurants, cinemas and leisure centres forced to close.

Government help businesses during coronavirus pandemic

Hence, the Government has put in place measures to ease the financial burden while not trading with business rates suspended for 12 months. This measure applies across the board to all businesses involved in retail, leisure and hospitality in England and similar concessions for Scotland and Wales.

The Government is proving themselves incredibly supportive with business interruption schemes and the HMRC providing extensions on tax payments. See the link below for full details:

https://www.gov.uk/government/news/chancellor-strengthens-support-on-offer-for-business-as-first-government-backed-loans-reach-firms-in-need

Make changes to household bills and budget to save money during coronavirus outbreak

With the country on lockdown, people are mindful of energy costs and increased usage. Speak to your supplier to find out what they are doing to help people during the pandemic. If you are not satisfied, there are certain matters you can take to save money. For example, looking around for alternative money-saving energy tariffs by looking at comparison sites for the best offers available.

The process is incredibly easy and the savings can be considerable. Continually check to ensure you are on the cheapest tariff. Make use of money-saving tips such as using your dishwasher/washing machine/tumble dryer late at night.

Check your current insurances to find out what they are offering in these difficult times. Reputable insurance companies have clear guidelines to cover change of situations such as working from home. If you are using office equipment supplied by your employer, make sure it is your employer’s responsibility for this equipment.

Keep on top of day-to-day finances. If you are struggling with your mortgage, loan repayments, direct debits, utility bills then speak to the provider to organise a payment plan. Most lenders and utility companies understand that this situation is difficult for everyone, and will provide assistance as much as possible. Financial assistance includes schemes such as repayment breaks, term extensions or temporary reductions in line with your income.

Banks and building societies requested to offer solutions to help people

As we previously mentioned, the UK Government has stepped up and instructed lending institutions such as banks and building societies to offer a three-month break on repayments, waiver of interest payments, and other emergency measures. Check your bank’s website for details on what they are providing customers during the crisis. If you have not heard about what your bank or building society is offering in the way of a financial buffer, then call them immediately.

For businesses, the Government has several helpful new Coronavirus policies in place, including:

  • statutory sick pay relief package for SMEs
  • 12-month business rates holiday for retail, leisure and hospitality businesses in England with similar concessions for Wales, Scotland and Northern Ireland.
  • small business grant funding of £10,000
  • grant funding up to £25,000 for retail, leisure and hospitality business properties at a rateable value between £15,000 and £51,000
  • a Coronavirus Business Interruption Loan Scheme to support businesses with cash-flow pressures needing additional finance
  • help with tax payments via the HMRC Time To Pay Scheme

For general households, now is the time to review income and outgoings. Discover where to make savings. For example, cancel unnecessary subscriptions or regular monthly outgoings, e.g. gym or club memberships, at least until this crisis is over and we can resume normality. Check comparison sites for cheaper deals on utilities, credit cards, mortgages and speak to your bank to find out about difficulties with meeting necessary repayments.

Remember that you are not the only one concerned about finances, everyone is in the same boat, from Richard Branson to your next-door neighbour. There is no shame in admitting financial worries during a pandemic! Businesses and lenders are subject to close Government scrutiny to help their customers and to ensure sympathy.

Life insurance is still important – speak to a life insurance advisor

People without life insurance are realising the importance of cover during the pandemic and we welcome any enquiries. Our team of specialist advisors are on hand to guide you through the process of obtaining a competitive life insurance quote.

Heed the guidelines and stay safe during coronavirus outbreak

In the meantime, heed the advice by Government regarding hand washing, social distancing and staying home, measures all necessary to get us through this absurd standstill.  Most importantly, stay safe.

 

 

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