WealthWiseOCT/NOV 2012

FEATURING

HOW THE cHANGEs

TO FINANcIAl

REGUlATIONs

mAy AFFEcT

yOU

How a cashflow forecast can help you to achieve

your financial goalsand aspirations

ALSO: Easy ways to

get more from your money

The annuity alternative

wrap accountsand their benefits

HOW TO mINImIsE your tax liabilty

What you should know

The Retail Distribution REVIEWThe way you receive

financial advice is about to change

Income Drawdown

Scotia Independent Financial Services is an appointed representative of the TenetConnect Services Ltd, which is authorised and regulated by the Financial Services Authority.

Telephone: 0141 221 3677 E-mail: info@scotiaindependent.com

03 WRAP ACCOUNTS and managing your investments

04 THE RETAIL DISTRIBUTION REVIEW and your financial advice

06 HOW TO SAVE TAx what you should know

07 LASTINg POWERS Of ATTORNEy protecting our wishes

08 CASHfLOW fORECASTINg shaping your financial future

09 gET mORE fROm yOUR mONEy simple strategies

10 INCOmE DRAWDOWN the annuity alternative

11 INCOmE DRAWDOWN continued...

12 PRIVATE mEDICAL INSURANCE questions and answers

If yOu requIre Any further InfOrmAtIOn On Any Of the feAtured tOpIcS, Or

yOu wOuLd LIke tO receIve fInAncIAL AdvIce bASed On yOur Own IndIvIduAL

cIrcumStAnceS, pLeASe fILL In yOur perSOnAL detAILS On Our “cOntAct me” SLIp On pAge tweLve, Or ALternAtIveLy

pLeASe cALL Or e-mAIL uS tO ArrAnge An AppOIntment.

We look forWard to speaking to you.

The articles within this publication are for information purposes and general guidance only. They do not intend to address your individual requirements and therefore no person, nor corporation should act upon such information before acquiring full professional advice. Although great care has been taken to ensure all information is correct before publishing, there can be no guarantee all the information stated will still be accurate at the date of receipt, nor may it remain to continue to be in future.

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INSIDETHIS ISSUEweLcOme tO Our LAteSt ISSue Of weALthwISe; SpecIfIcALLy deSIgned tO heLp yOu mAke the

mOSt Of yOur mOney by keepIng yOu up-tO-dAte And InfOrmed wIth ALL the LAteSt fInAncIAL

newS And InfOrmAtIOn.

InSIde thIS ISSue, we dIScuSS the fOLLOwIng:

FEATURING

THE RETAIl

DIsTRIBUTION

REVIEW AND

yOU

06

3

A Wrap account enables you to bring all of your investments and pensions together. It is called a ‘Wrap’ because all of your financial products are effectively ‘wrapped’ up within one account. They are not standalone investment

products, so they do not generate money, however, they can make it easier to monitor the performance of your chosen products and investments. Here is our guide to Wrap accounts:

Q: What can I put Into a Wrap account?

In theory, any product or investment should be able to be put into a Wrap account. These could include equities, mutual funds and tax havens such as Individual Savings Accounts (ISAs) and Self Invested Personal Pensions (SIPPs).

Q: What happens WIthIn my Wrap account?

The Wrap account provider can purchase investments or products on your behalf and consolidate them within the Wrap account. Additionally, if you have any existing investments or products, these can be moved into the Wrap account so that you can view your entire portfolio in just one place – potentially making your portfolio easier to manage.

Q: What are the benefIts?

With a Wrap account the information and performance of your investments can be instantly updated. This makes it easier for you to monitor the performance of your portfolio and make any necessary changes should you wish to do so. you can choose to manage your own portfolio or you can allow us to manage your portfolio on your behalf. This will enable you to build an investment portfolio based on your individual attitude to risk and your overall objectives.

Q: WhIch Wrap should I consIder?

Wrap accounts vary in style and complexity, so please speak to us for

further information. A simple Wrap account may offer basic investments in unit trusts and ISAs for example, whereas, more complicated Wrap accounts, may include holdings in international equities, bonds or insurance products.

Q: What are the charges?

The cost of holding your products and investments within a Wrap account can vary. Charges tend to range from 1.5 to 2 per cent of the assets under management but one of the major benefits of a Wrap account is access to investment products at wholesale prices. However, do bear in mind, if you are looking to transfer existing investments or products into a Wrap account, there may be extra costs involved.

Q: can I just transfer my exIstIng products and Investments?

Some Wrap account providers will allow certain investments to be re-registered within a Wrap. However, some products will need to be surrendered or sold and then repurchased within the Wrap account – however, do be aware that by doing this you may incur a taxable gain. Please do ask for a personalised illustration as this all depends on the existing products and investments that you hold.

Q: Is there a mInImum value of assets reQuIred?

This varies depending on the provider. It is important to conduct thorough research, as some providers will lower the charges for managing assets worth over a certain value, which makes them particularly attractive if you have a larger sum to invest.

Wrap accounts

for more InformatIon regardIng Wrap accounts, or If you are consIderIng holdIng your

Investments WIthIn a Wrap account, please do make an appoIntment WIth us for further InformatIon.

We look forWard to speakIng WIth you.

and managing your investments

the benefItS Of A wrAp AccOunt:

* A Wrap account can bring together all of your products and investments – these can include cash, shares, bonds, investment trusts, unit trusts and pensions - all under one roof.* You can view the performance of your portfolio and any tax implications at any one time.* Wrap accounts offer a variety of investments and tax wrappers, meaning your Wrap account can be tailored to meet your individual attitude to risk and your financial objectives.* Because Wrap accounts offer access to a wide selection of investments and tax wrappers - many at wholesale prices - you have the opportunity to make a wide variety of changes to your portfolio if you decide to do so.* Should your income or lifestyle change, Wrap accounts often allow you to adjust your objectives without a high cost implication.* Completing your tax return is made a much simpler process.

WiseInvesting

4

The Retail Distribution ReviewWiseFinance

rdr Is about IntroducIng a “resilient, effective and attractive retail investment market

that consumers can have confidence in and

trust at a time when they need more help and

advice than ever with their retirement and

investment planning.”

so What Is happenIng?The fSA are revolutionising the way financial advice is offered to potential investors who wish to receive advice on relevant retail investment products. RDR will mean:

1All potential investors will only receive advice from fully trained,

capable professionals who follow a code of conduct to ensure they always act with honesty whilst treating their customers fairly.

2Advisers will need to inform potential investors of how much

their services will cost and ensure that they are in agreement with how much they will pay for investment products and services.

3 Independent financial advisers must consider all of the available

and most appropriate options to suit their client and must do so free from any bias or personal gain - such as those that offer a potential commission payment, for example. They must also offer products from all providers and not just a select few. The aim of this is to ensure that advice is entirely independent and if it is not for whatever reason, it is clearly explained why this is the case.

When Is thIs happenIng?RDR is due to commence on 31st December 2012.

What does thIs mean for me as a potentIal Investor?The point of RDR is to increase consumer confidence in the financial advice you are being given. you will be provided with advice from a greater range of products - and the products, which can be offered, will be clearly explained. you will also know exactly how much your financial advice will cost and that it is free from prejudice. What’s more, due to the new professional standards, the advice you receive will be from a financial professional with a greater level of financial expertise.

What does thIs mean for Independent fInancIal advIsers?As of 31st December 2012, advisers will have two options:1. They offer totally independent advice from the open market.2. They offer restricted advice – whereby the nature of the restriction will need to be explained.

What professIonal standards WIll fInancIal advIsers have to meet?Every financial adviser will have to meet new professional standards on an ongoing basis. Improved strategies will be put in place to ensure the advice you receive is up-to-date and all financial advisers must now meet a higher qualification criterion before

they can provide you with financial advice. A code of ethics and integrity will also be introduced to ensure that you are treated fairly at all times.

WIll fInancIal advIce cost me more?financial advice has never been free, however, perhaps the most obvious change will be the introduction of a direct fee to obtain financial advice. Previously, many advisers relied mostly on commission payments from product providers to pay towards some of the costs involved when obtaining their advice. However, because some product providers offer higher commission rates than others, the fSA feared this could cause a conflict of interest.

Therefore, as of 2013, product providers will not be able to pay commission at all. financial advisers will have to outline and agree fees for their advice in advance. The aim is to make the financial advice and the service you receive more transparent – the idea is to make it easier for you to work out exactly what you are being charged and what your adviser is doing to justify that charge.

What’s next?These are big changes within the financial services industry, which will affect you. If you have any questions or if you would like to find out more about RDR please do get in touch with us.

The launch of the Retail Distribution Review (RDR) by the financial Services Authority (fSA) is set to be the biggest overhaul of financial regulation since the financial Services Act was first introduced. According to the fSA, RDR is about introducing a “resilient, effective and attractive retail investment market that consumers can have confidence in and trust at a time when they need more help and advice than ever with their retirement and investment planning.”

so, as of 31st december 2012, the Way you receIve fInancIal advIce WIll radIcally change and here We explaIn exactly What It means for you.

The Retail Distribution Review

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the retaIl dIstrIbutIon revIeW (rdr) on the 31st december 2012 means the Way you receIve fInancIal advIce Is about to change.

reationsE

6

WiseTax

HOW TO save Taxwhat you should knowWithin this article, we highlight the key facts you should be aware of and investigate how you can make simple changes to minimise the amount of tax you have to pay:

Personal taxes

tax codeyou should check your tax code each year and notify your tax office of any inaccuracies – if you’re on the wrong code, you may be paying too much tax.

tax return deadlinesIf you complete a paper tax return, do not miss the 31st October deadline – or 31st January 2013 if you file online – otherwise you may incur a fine.

capital gains tax (cgt) allowancefor this tax year, capital gains made up to the value of £10,600 are tax-free. married couples and civil partners who own assets jointly can effectively double their allowance to £21,200. CgT is charged at 18 per cent or 28 per cent depending on if you are a basic rate or higher rate taxpayer, respectively.

annual investment allowanceIf you rent out a property or own a business, take advantage of the annual investment allowance (AIA). This enables you to claim up to £25,000 a year for capital expenditure on items such as tools and office equipment.

savings and investments

individual savings account (isa) allowanceEnsure you use your tax-free ISA allowance. for this current tax year, your ISA allowance is £11,280, of which £5,640 can be put into Cash, or the whole allowance can be invested into a Stocks and Shares ISA.

stocks and shares within an isaRemember that you are not liable to pay CgT when you sell stocks or shares that are held within the wrapper of an ISA.

Junior isasUse a Junior ISA to avoid being taxed on the savings you accumulate for your children. The current Junior ISA allowance is £3,600 per tax year and unlike regular ISAs, the government is not prescriptive about how this allowance is shared between the two ISA types.

transferring assetsIt may be worth considering transferring assets to your husband, wife or civil partner, particularly if they pay a lower rate of tax than you do.

ProPerty income

tax relief on your mortgageWhen you choose to rent out a property, you can claim tax relief on the incurred interest from the mortgage you have against the property.

rent a roomIf you were to rent out a furnished room within your own home, the rent-a-room relief is a scheme that will enable you to receive up to £4,250 in rent each year from a lodger, tax-free.

landlord’s energy-saving allowanceIf you rent out a property you can claim a special energy-saving tax allowance of up to £1,500 for providing wall and loft insulation, draught proofing and installing a hot water system, for example.

landlord’s expensesIf you rent out a property, you can deduct a series of costs before affirming your taxable income. These include paying builders, plumbers, gardeners, cleaners and letting agency fees, for example.

cgt on a rental propertyLandlords are normally liable for CgT when they sell a rental property. It may be worth moving back into the property before you consider selling so you can claim main residence relief. Or, if it has previously been your main residence, you can claim tax relief for the last three years of ownership.

emPloyee benefits

season ticket loanIf you travel to work by train, ask your employer if they can provide you with a tax-free loan to buy an annual season ticket.

company carIf your employer offers you a company car, do your research before accepting their offer. It may be more tax-efficient to receive an increase in your salary instead.

pool carsIf your employer offers a pool car, it may be beneficial to use this for any occasional business travel.

greener carsIf you are offered a company car, bear in mind the CO2 emissions. Cars with lower emissions are taxed at a lower rate than cars with a high CO2 rating.

childcare schemes and tax creditsIf you are employed and currently have to pay for childcare, ask your employer if they would consider a childcare scheme. Childcare schemes are easy to form and they can result in savings for both you and your employer.

pay into a pension schemeAny contributions to your employer’s pension scheme, from both you and your employer will be taken from your gross pay, before your rate of tax is charged.

tax savings for older PeoPle

national insurance (ni)If you carry on working beyond the state retirement age make sure you contact the Department for Work and Pensions to stop your NI contributions.

tax relief on giftsIf you are classed as a higher rate taxpayer, you can claim back the difference between your higher rate and the basic rate of income tax on any gift Aid donation.

inheritance taxAny gift you make will be excluded from your estate for inheritance tax purposes if you live for a further seven years after making the gift. These are called Potentially Exempt Transfers (PETs) and they can reduce the value of your remaining estate considerably.

It Is Important we take actIon to ensure we do not pay more tax than we have to. For more InFormatIon regardIng any oF the above, please do not hesItate to contact us - we are here to help.

The value of your investment can fall as well as rise and you may get back less than the amount you have invested. Levels, bases and reliefs of taxation are subject to change and their value depends on the individual circumstances of the investor. The Financial Services Authority does not regulate taxation advice.

7

WisePlanning

a lIvIng WIll:

A “living will” is designed to communicate what you would like to happen if you became incapacitated and could no longer make decisions for yourself. By drawing up what is called a “Lasting Power of Attorney” (LPA) - whilst you are still mentally and physically able to - you can appoint someone to act on your behalf if your circumstances should deem it necessary.

lastIng poWer of attorney (lpa)

there are two types of lpa:

1 money and property lpa: This provides your nominated person

with control over your financial matters.

2 personal Welfare lpa: This provides your nominated person

with control over your medication and healthcare.

you do not have to have both of these and don’t think you will suddenly lose control of all of your own affairs. you can specify when and if the LPA shall apply. for example, if you fell into a coma, your nominated representative could start looking after your affairs. Then if and when you woke up from your coma, you could immediately take back control of your decisions once again.

Remember that you can only set up an LPA when you have full mental capacity to do so. If you lose mental capacity and haven’t set one up, it’s too late.

“mental capacity” is the ability to make your own decisions. These could be about everyday normal things - like what to wear or have for dinner - or more key decisions like whether to move house or sell a car. A lack of mental capacity can be caused by a number of different things, such as an injury or medical condition - a terrible car accident or dementia, for example.

The role of your representative involves a large amount of power and control; so think carefully about the person you choose. you can choose more than one representative to control your affairs. In Scotland welfare power of attorney is implemented for personal affairs and a continuing power of attorney is used for financial matters.

an lpa must be registered with the office of the public guardian, or the office of the public guardian in scotland.

can I do It myself?you can set up your own power of attorney. However, do bear in mind that the paperwork can be complicated and a professional is required to certify that you understand the full implications of what you are doing and that you are not being pressured from any third party.

please note:

as of october 2007, lastIng poWer of attorney replaced endurIng poWer of attorney. hoWever, an endurIng poWer of attorney that Was created, sIgned and regIstered prIor to 1st october 2007 WIll stIll be valId.

Lasting Powers Of AttorneyprOtectIng Our wISheS many of us choose to make a will because we want to know that our affairs are in order before we die. However, very few of us think about how we could organise our affairs if we became unable to look after them ourselves whilst we are alive. With this in mind, it may be advisable to draft a “living will” in the event that we do, unfortunately, become incapacitated. Here is our guide to what you need to know:

The Financial Services Authority does not regulate Will Writing nor does it regulate Lasting Powers of Attorney.

“you can only set up an lpa when you have full mental capacity to do so. if you lose mental capacity and haven’t set one up, it’s too late.”

WisePlanning

8

Cashflow forecasting is traditionally a method used by business owners to examine the income and expenditure of their business over a specific period of time – something that could prove vital in terms of both growth and ultimate survival of the business. However, we could all benefit by applying these similar principles to our own personal finances. By

performing a cashflow forecast using a professional cashflow tool, you can review the regular flow of money that you have, or expect to have, and prepare for any action you may need to take in order to achieve your financial goals and aspirations.

Cashflow forecasting

the benefIts of cashfloW forecastIng:Cashflow forecasting can help you to predict highs and lows in your own cash balance and a “lifetime cashflow forecast” can determine your financial requirements for the rest of your life. In some instances, we believe that before we can talk to you about your money, we need to know about you and your financial aims and objectives. To plan your financial future without a cashflow forecast can make it difficult to answer some of your important questions:• When will I be able to afford to do the things that i want to do?• How long would my money last?• Am I taking too much risk?

Without performing a lifetime cashflow forecast, we may only be estimating the answers to these questions. We need to ascertain:• What do you want to do with the rest of your life?• How much would this cost?• When can you afford to retire?• How much money is enough?

• What can you do to ensure you never run out of money?• What can you do to ensure your family will be financially secure in the event of any unforeseen circumstance?• How secure are your investments?

A cashflow forecast could help you to work out when - and if - you can take on a financial commitment. This could be something as simple as an extension to your home - or more importantly when you can afford to retire, or the impact on your assets should you require care in later life, for example.This can help you stay on track to achieve your financial goals and aspirations and avoid overstretching yourself in terms of your personal finances. you will also be able to identify any potential cashflow problems and take any necessary action so that these

do not interfere with your long-term objectives.

By performing a cashflow forecast, you may also discover you have money to invest, so choosing the right bank or savings account for your money or investment products, is also very important. When considering your investment options, it is a good idea to seek professional advice from a financial adviser – we can discuss the choices available and help you to decide which option will suit you and your personal circumstances.To keep on top of your personal finances and get the most from your money, do remember that personal cashflow forecasts should be reviewed and updated regularly, particularly if your circumstances change – i.e. an increase to your salary, retirement, a buy-to-let purchase or a house move. Interest rates, legislation, and tax changes may also make an impact on your cashflow forecast, so do bear this in mind.

If you would lIke to receIve further InformatIon regardIng anythIng wIthIn thIS artIcle, pleaSe do make an appoIntment wIth uS and we wIll be happy to dIScuSS thIS wIth you.

sHaPING YOUR FINaNCIaL FUTURe

WiseSavings

9

Easy ways to get more from your money

* WrIte a sImple budget:

you will only know how much you can afford to save each month when you work out your incoming and outgoing payments. you can then work out from the surplus what you can realistically afford to save each month.

* save as soon as you are paId:

This way you will give yourself no time to spend it, it might be an idea to set up a standing order to credit your savings account each month.

* analyse What you do and don’t need:

Are there any regular payments for products you no longer require? If so, end these immediately. If there are products you still want or require, consider whether you are getting the best deal on each product and consider swapping to a new provider if not.

* clear debts:

Before you start to save, clear any outstanding debt you may have. you will incur a higher rate of interest on your outstanding debt than you will accrue in a savings account, so it is advisable to pay off any debt first. There is little point in saving into an account paying approximately 3 per cent interest if you have debt growing at 20 per cent or more.

* make the most of your Isa alloWance:

An Individual Savings Account (ISA) is a tax-free savings haven. for this financial year, you can save up to £5,640 into a cash ISA and

£5,640 into a stocks and shares ISA or the whole amount of £11,280 into a stocks and shares ISA only. Within these accounts, all the interest earned is free from tax, making them a very efficient way to save.

* regularly revIeW your savIngs:

Always ensure you save your money into the savings account paying the best rate of interest possible - just because yours was paying the best interest rate a year ago, it doesn’t mean this will still be the case now.

* spend WIsely:

Think about the money you spend during your average day and consider cheaper alternatives. As simple as it seems, if you regularly buy lunch out during the working week for example, consider swapping to a packed lunch - over the course of a year this could save you hundreds.

* If you can; fIx:

On average a fixed rate savings account will pay out at a higher rate of interest than a standard savings account. However you often have to tie up your money for an agreed term to receive the higher rate payment and do be aware that if you wish to withdraw your cash early, you may incur a high penalty. It may be worth considering a short-term fixed account as these can enable you to switch to a better rate of interest should yours begin to fall short.

* don’t leave your cash In under performIng cash accounts:

If you think you could have at least five years before you would need to access your

money, then it is certainly worth thinking about your alternative investment options - especially when the interest rates in cash accounts are so low. One option could be to transfer an existing cash ISA into a stocks and shares ISA or perhaps investing a regular sum of money into a managed investment fund. As with all investments, your capital could decrease, but if you have time on your side you have a better chance of surviving any possible storm, so it is certainly worth thinking about.

* thInk about your retIrement:

make preparations for your retirement, even if it is still a long way away. If your current employer offers a pension scheme - consider joining, or consider a simple stakeholder pension. Although they have had a media backlash of late, they are still efficient in terms of tax.

For more inFormation on how to make the most oF your money, please Fill in our “contact me” slip on page 12 or call us to arrange an appointment, we will be more than happy to help.

Regulations, levels, bases and reliefs of taxation are subject to change and their value depends on the individual circumstances of the investor.

Even when interest rates are low, it is still important to save. Here are some very simple techniques you can follow to help you save more efficiently:

WiseRetirement

10

Income drawdown is an alternative to purchasing an annuity when you reach retirement. Unlike an annuity, which pays you a set income for life, income drawdown means leaving your pension invested, and withdrawing a percentage of your pension pot each year as an income. Here is our guide to what is known as, “income drawdown”:

THe aNNUITY aLTeRNaTIve exPLaINeD

remember: as of 21st december 2012, the eu gender rulIng WIll mean Insurers cannot set dIfferent annuIty rates for men and Women. thIs may affect the calculatIon of the annual maxImum Income receIved from Income draWdoWn.

so, What Is Income draWdoWn?

If you have a personal pension or a similar money purchase scheme, when you reach the age of 55 you can withdraw a percentage of your pension savings as a tax-free lump sum. However, at some stage thereafter, you will need to turn the rest of your fund into an income to support you through retirement.

Rather than purchasing a lifetime annuity - whereby you surrender your pension fund in return for a set income throughout the lifetime of your retirement - income drawdown is an alternative way of receiving your retirement income.

With income drawdown you leave your pension fund invested but withdraw a percentage of it periodically to provide your required level of income (within set limits).

If you do choose to follow the income drawdown route, the rules state that

you can still buy a short-term annuity to provide you with an income for up to five years. for example, you could purchase a five-year, short-term annuity, which will pay you a simple, regular income, and in conjunction cash-in a percentage of your fund on an ad-hoc basis to provide you with any extra cash if you need it.

you can repeatedly do this for as long as you like. you can then decide to use your remaining pension fund to purchase a lifetime annuity when it suits you.

Income draWdoWn rules

from 6th April 2011, the rules were changed. The income drawdown rules state that from 2011 onwards, most of us will qualify for ‘capped drawdown’. But if you have a large enough pension fund, you may qualify for ‘flexible drawdown’.

capped draWdoWn

Anyone can qualify for capped drawdown. The amount of money you can withdraw from your pension fund each year is capped at an upper limit. This is approximately the same income you would receive if you had used your pension fund to purchase an annuity.

Up until you reach the age of 75, the maximum level of income you can receive is set for three years. After three years, your cap is recalculated based on the value of your remaining fund. Any change in annuity rates will also be reviewed and the fact that you are three years older will generally be taken into account. When you reach the age of 75, your cap will be recalculated annually.

Do bear in mind that you do not have to withdraw your maximum limit each

year and provided you stay within your cap, you can choose to draw out regular payments or irregular lump sums, as and when you need to.

flexIble draWdoWn

To qualify for flexible drawdown, you must have a secure pension income of at least £20,000 per year. you will have to provide source details of this income and sign the necessary documentation as confirmation. With flexible drawdown, there is no upper limit on the amount you can withdraw each year – in fact, if you wanted to, you could withdraw your whole pension fund as one lump sum. However, do remember, that the money you take after withdrawing your initial tax-free lump sum is considered taxable income for the year in which you take it.

further InformatIon:

Deciding whether income drawdown is right for you is a difficult decision and you should seek professional financial advice. We can help you carefully check the terms and conditions of any scheme you may be interested in and help you to decide if it is indeed suitable for you.

INcOmE DRAWDOWN

WiseRetirement

11

AdvAntAgeS Of IncOme drAwdOwn:

•you can withdraw your tax-free lump sum from your pension fund, but then choose not to withdraw anymore until a much later date.

•you have a lot more freedom over when and how much income to withdraw.

•you keep your pension fund invested so it has the potential to carry on growing in size.

•when you die, any remaining money within your pension fund can be passed down to your heirs – after the 55 per cent tax it is subject to, has been deducted.

dISAdvAntAgeS Of IncOme drAwdOwn:

•Income drawdown can be riskier than buying a lifetime annuity as your remaining pension fund could fall in value.

•Income drawdown can be more costly than purchasing an annuity.

•If your fund does fall in value, you may have to reduce the income you withdraw - at least temporarily.

•Income drawdown can be more suitable if you have a larger pension fund or have other sources of income to rely on if you need to.

WiseInvesting

This magazine is for general information only and represents our understanding of the current law and HM Revenue and Customs Practice. We cannot accept responsibility for any errors or omissions it may contain.

For more information:on any of the articles or related topics within this publication, or for individual financial advice based on a range of financial products, which may be available, please fill in your details on the right and return this to us.

Personal information will be treated as confidential and held in accordance with the Data Protection act. You agree that your personal information may be used by us to provide you with details of products and services we may offer.

NAmE:

ADDRESS:

POST CODE:

TELEPHONE:

E-mAIL:

I WOULD LIkE TO kNOW mORE ABOUT:

Private medical Insurance (PmI) is beneficial for any patient seeking faster consultations or treatment for

curable, short-term medical conditions, than the National Health Service (NHS) can offer.PmI is not as expensive as some may believe; there are usually three types of cover ranging from budget, standard and comprehensive – however, it must be remembered that the level of cover will vary accordingly and the premium will depend on your age, current health condition and whether or not you smoke.There are some common questions and misconceptions surrounding PmI – in the following article, we hope to answer and clarify some of the most common:

Q IS PmI ONLy BENEfICIAL TO COVER THE mOST ExPENSIVE mEDICAL COSTS?

A: Not necessarily. Having PmI is clearly beneficial should the treatment you require otherwise cost thousands of pounds. However, on the whole, if you choose the correct policy, the costs of smaller procedures and outpatient treatments are often covered.

Q I HAVE PmI THROUgH my EmPLOyER, BUT I Am ABOUT TO RETIRE, WHAT

SHOULD I DO?

A: If your PmI is included as part of your employment contract and you retire you will

have to renegotiate your policy, but you are likely to qualify for discounts. Bear in mind however, that the over 60s no longer receive tax relief on PmI.

Q DOES WHERE I LIVE mAkE A DIffERENCE TO my PREmIUm?

A: In order to decrease your premium you could consider only including treatment at particular hospitals closest to where you live. many policies cover all private hospitals, which is often unnecessary.

Q IS THERE AN AgE RESTRICTION?

A: This depends on the insurer - some providers will cover anyone, at any age, whereas others will have an upper age limit.

Q CAN I PURCHASE PmI fOR my CHILDREN?

A: Parents or grandparents can purchase sole PmI for children or grandchildren through many providers.

Q WHAT IS “SHARED RESPONSIBILITy”?

A: Rather than pay an excess charge, shared responsibility is when the cost of treatment is shared between you and your insurer. Typically, an agreed contribution limit is set per year and once you reach your set limit, your insurer is then liable to cover any further eligible costs remaining.

Q IS CANCER COVERED?

A: you can include surgery for treating cancer or acquiring cancer drugs – or a combination of both – depending on the insurer. you can also tailor a policy to ensure full cancer cover is included should you wish.

Q WHAT If I HAVE A PRE-ExISTINg CONDITION?

A: The condition itself may not be covered within your policy, however so long as your pre-existing condition is under control, many providers will still cover the cost of private treatment for other medical conditions, please do ask us for further information.

QuestIons to consIder:

• How much do you want to spend?• Do you want your cover to include seeing a specialist and/or having investigative tests, such as blood tests?• Could you pay for part of your treatment?• Can I receive treatment from a number of hospitals or just a select few?• What ISN’T covered?

Should you require any further advice regarding PmI, or you would like help in obtaining the correct policy for your requirements, please do make an appointment with us today.

Private Medical Insurance

please return to:

Scotia Independent Financial Services9 Fitzroy Place

GlasgowG3 7RH

e: info@scotiaindependent.com