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MedEx has introduced an Income Replacement Plan

MedEx has introduced an Income Replacement Plan that combines conventional income replacement with some of the benefits associated with healthcare cash plans.

For each working day that is lost through illness, disability or accident, the plan pays out one thirtieth of a person&#39s monthly salary. The healthcare cash plan element of the product means that money can be claimed for broken bones, a hospital stay, loss of limbs or accidental death.

MedEx believes it can tap into a ready market of blue-collar workers and people who are self-employed, as these workers tend to take out healthcare cash plans rather than private medical insurance.

Income replacement plans are becoming more popular because the state no longer provides adequate financial help for people who cannot work through illness or accident. Even so, they are difficult to sell as people tend to think their ability to work will not be affected by illness.

In this context, the MedEx Income Replacement Plan is a reasonable product for a relatively small market. But its combination of hospital cash with income

replacement is unlikely to give customers much extra cash because hospital stays tend to be much shorter than they used to be.


Health insurance specialist Goodfellows has introduced DisabilitySAFE

Health insurance specialist Goodfellows has introduced DisabilitySAFE, an income protection plan that is particularly aimed at professionals who are paid by the hour.The package is available for individuals and for businesses who want to provide cover for their employees. The company says the Government&#39s curtailing of state disability benefits has created opportunities for low-cost income […]

Axa SunLifes Multimanager fund

Axa SunLife&#39s Multimanager is a fund of funds aimed at a wide range of investors who are looking for capital growth or income.The product contains four fund options, which include the global opportunity, growth, income and 2020 funds. Investors can split their money between all four funds, or concentrate on one or two.The 2020 fund […]

Financial Services firms avoid VAT on direct mail

Financial services will be to avoid paying VAT on direct mail packs following a tribunal ruling. The case was brought on behalf of the Leeds-based Direct Marketing Bureau by business adviser Pannell Kerr Forster. The basis of the case was the Customs and Excise decision to levy standard VAT-fees on mailpacks the bureau had created […]

Liabilities feared in Revenue income bond raid

Life offices fear an Inland Revenue review of high-income bond taxationcould leave them facing massive liabilities.The Revenue is considering taxing life offices which offerderivatives-backed high-income bonds on an income tax basis rather than ona capital gains tax basis. The life offices could be hit with a huge incometax bill.In its Treasury return last year, Eurolife […]

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.


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