Questions of Cash: Can't I get a cheaper quote now I'm well again?

Q.Eight years ago I had Hodgkin's Disease from which I made a complete recovery after six months of chemotherapy. Can I get a more reasonable quote now?


Q. Eight years ago I had Hodgkin's Disease from which I made a complete recovery after six months of chemotherapy. I am 27 and have been clear for over seven years. My consultant thinks I am no more likely than anyone else to get cancer. I have two children and want a life insurance policy. Legal & General and Norwich Union offered me policies at £200 a month for the first five years for cover of £99,000. Premiums for my age group should be £20 a month. Can I get a more reasonable quote?


JS, Gloucestershire

Q. Eight years ago I had Hodgkin's Disease from which I made a complete recovery after six months of chemotherapy. I am 27 and have been clear for over seven years. My consultant thinks I am no more likely than anyone else to get cancer. I have two children and want a life insurance policy. Legal & General and Norwich Union offered me policies at £200 a month for the first five years for cover of £99,000. Premiums for my age group should be £20 a month. Can I get a more reasonable quote?
JS, Gloucestershire

A.Seek guidance from a medical specialist financial adviser or insurance broker. Dr Penny O'Nions, an IFA with the Onion Group and a doctor of medicine, says: "Insurers are reluctant to cover conditions which might return. Fill in a generic application form and a specialist adviser can broker the market on your behalf. Information will be required from your GP, consultant and specialists." Dr O'Nions says it is unrealistic to hope for cover of £99,000 on a £20 monthly premium. But with a policy on a term of three to five years you might get the level of cover you require at a monthly premium of £50 to £100, possibly from a Lloyd's syndicate rather than a large life assurer.

Q. Our daughter is a single parent and mature student. We bought a second property that she lets from us and which she plans to buy when she completes her studies in two years. We would like to regain our deposit and take advantage of the increase in property prices as we will need this money to fund an anticipated shortfall on our endowment policy to pay off the mortgage on our home. We also want to provide our daughter with a deposit and legal fees. How can we achieve this and reduce capital gains tax (CGT) liability? The property has doubled in value from £37,000 two years ago. PB, Manchester

A.Glenn Martin, a tax manager at the accountant Moore Stephens, says: "CGT will be payable on the difference between the sale proceeds and the amount you paid for the property. You will get tax relief for professional expenses such as solicitor's fees. You should ensure that the property is in the joint names of you and your wife, as this enables you each to claim the annual capital gains exemption, currently £8,200. Assuming the property is worth £100,000 in 2006 and in your joint names, the potential capital gain will be about £40,000, split between you and your wife. Tax will be payable at either 20 per cent or 40 per cent, depending on your other income and gains in the year of sale.

Your daughter would have a stamp duty liability of £1,000. To reduce CGT, one of you might elect the second property to be your main residence for tax purposes. You would need to live there for a period as your private residence. The last three years' ownership are then exempt from the charge to tax - potentially 75 per cent of the gain. Alternatively, you and your wife might gift your daughter a 50 per cent share in the property now, with your daughter acquiring the remaining half in two years. The gift is treated as a potentially exempt transfer for Inheritance Tax purposes, which means it will be disregarded if you both survive seven years from the date of the gift. No stamp duty will be payable on this gift. There will be CGT liability on the gift, with two capital gains tax annual exemptions available - the gain after exemptions would then be about £2,100, payable at either 20 per cent or 40 per cent. In two years there would be no stamp duty payable on the half share as this would, presumably, be under £50,000. After repaying your mortgage the CGT on your joint half share would be about £2,250 if you pay tax at basic rate." You should seek your own expert advice.

Q. I am 42, entitled to an ICI Pension with 21 years' service, frozen on leaving the company in 1999. I have a second company pension with five years' service. My divorce settlement has left me £30,000 in debt, I am renting accommodation and have no capital for a new mortgage. I have a good job with a salary of £53,000. I would like to cash in my ICI pension - is this possible? CC, by e-mail

A/No. Simon Creeber, a pensions specialist at the IFA Vale Insurance Services, explains: "In return for pension scheme tax advantages there are strict conditions as to how and when benefits can be taken. A person's pension entitlement cannot be cashed in, but must be used to provide an income.

"Unless you are forced to retire due to ill health, it is not possible to take benefits before age 50. Any payment of benefits before the company scheme's normal retirement age is discretionary and steep benefit reductions would be applied - although you could transfer away from ICI if they refused to allow benefits to be taken." Mr Creeber says you could examine 100 per cent mortgage loans which might enable you to purchase a property of up to £185,000 on your salary.

* If you have questions, write to Questions of Cash, 'The Independent', 191 Marsh Wall, London E14 9RS, or e-mail cash@independent.co.uk We can reply only to letters published. Please send copies, not originals.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Compliance Manager

    £40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

    SThree: Talent Acquisition Consultant

    £22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

    Recruitment Genius: Experienced Financial Advisers and Paraplanners

    Negotiable: Recruitment Genius: This extremely successful and well-established...

    Guru Careers: FX Trader / Risk Manager

    Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...

    Day In a Page

    Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

    Making of a killer

    What motivated a shy student to kill 38 holidaymakers in Tunisia?
    UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

    Just when you thought your commute couldn't get any worse...

    Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
    Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

    The Real Stories of Migrant Britain

    Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
    Cheaper energy on the way, but it's not all sunshine and rainbows

    Cheaper energy on the way, but it's not all sunshine and rainbows

    Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
    Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

    No grace of God for Katy Perry as sisters act to stop her buying convent

    Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
    Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

    Residents just want water and power in a city chosen to be a ‘smart’ metropolis

    The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
    Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

    Something wicked?

    Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
    10 best sun creams for body

    10 best sun creams for body

    Make sure you’re protected from head to toe in the heatwave
    Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

    Nick Bollettieri's Wimbledon files

    Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
    Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

    There is more than a shiny trophy to be won by England’s World Cup women

    The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
    How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

    How to stop an asteroid hitting Earth

    Would people cooperate to face a global peril?
    Just one day to find €1.6bn: Greece edges nearer euro exit

    One day to find €1.6bn

    Greece is edging inexorably towards an exit from the euro
    New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

    'Iron Man' augmented reality technology could become reality

    Holographic projections would provide extra information on objects in a person's visual field in real time
    Sugary drinks 'are killing 184,000 adults around the world every year'

    Sugary drinks are killing 184,000 adults around the world every year

    The drinks that should be eliminated from people's diets
    Pride of Place: Historians map out untold LGBT histories of locations throughout UK

    Historians map out untold LGBT histories

    Public are being asked to help improve the map