A round-up of the key long-term financial products

Recent figures from the Office for National Statistics (ONS) have shown that disposable income fell by 0.6% in the first quarter of the 2012, while the UK’s economy tumbled by 0.7% in the second quarter.
With Britain in the grip of a recession, the need for long-term financial planning has never been more critical. There are a range of financial products on the market that can help you make the most of your money, and ensure that you get the greatest possible return on your investments.

ISAs
Figures released by the ONS earlier this year show that savers placed £14.3bn into personal pensions in the 2010/11 tax year, compared with £15.8bn into stocks and shares ISAs. An ISA (Individual Savings Account) allows consumers to save a tax-free sum each year, as well as offering competitive interest rates. The ISA allowance for the 2012/13 financial year is £11,280, half of which can be put into a cash ISA and the remainder of the £11,280 can be placed into a stocks and shares ISA.

Life insurance

Life insurance is designed to provide a monthly payment or lump sum in the event of a policy holder’s death. Policy types range from the fixed premium rates offered by level life term cover to decreasing life term cover, where premiums are lowered on an annual basis.

Illness cover will pay out a fixed sum to policy holders with specified serious illnesses, including certain types of cancer, heart attacks and strokes, and can also payout for any medical costs incurred as a result of the diagnosis of a critical illness.
What all these policies have in common is that they will help your dependents to achieve continued financial security in the event of your death.
Getting a number of life insurance quotes will ensure that you get the best deal on your policy.

Income protection insurance
Levels of long-term unemployment have continued to grow, with ONS data suggesting that 441,000 people have been out of work for more than two years; a figure that has shot up by 18,000 – or 200 per day – in the three months up to May. Income protection insurance is designed to pay out regardless of the reason that you are unable to continue working. This gives you the peace of mind that you will always be sheltered from the turbulent employment market.