If you’re looking to use the equity from your home to increase your monthly income, then unlocking the capital in your property is an option. You may have heard about Equity Release as marketing for these products has been pro-actively around for some time. However, have you thought about this thoroughly? You may simply choose a standard plan, when in fact, you could be entitled to an increased rate of 30% by choosing an Enhanced Equity Release plan based on historical or current health conditions.
The open market now enables people to choose directly their own plan and approach insurance companies and sort out their own equity release. However, this could mean you missing out on increased rates. Using a specialist independent financial advisor enables you to have access to the full market and the resources to be able to find the correct equity release plan that is customised for your current lifestyle. You may have a health condition that could qualify you for an Enhanced Equity Release plan, as opposed to a standard plan, which could draw down anything up to 30% extra.
The open market is there to be explored and there are now Enhanced Equity Release plans that will pay more money whether that is as a monthly income or a tax free lump sum. You may think you’re saving money by not using an advisor, but in essence, you could be losing out financially. Independent advisers will be able to source the open market for you and find you the best rates available.
Enhanced Equity Release plans are based on your health and whether you’ve had historical conditions that could be considered as reducing your life expectancy or a current condition such as angina, could qualify you for increased rates and you can use the equity in your home as a way of increasing your monthly income. Providing information on your health to an independent financial advisor could qualify you for enhanced rates. Moreover, not using a specialist advisor could cost you some money in that you could end up totally on the wrong plan and suffer significant reductions in the value of your estate.
A standard plan hopes that you will live well into your eighties, if you have a condition and you die early, the problems you could be initiating could mean that your spouse could end up homeless were you to die early on a standard equity release plan. Why not use an Enhanced Equity Release to prepare your family for what may happen when you die? A standard equity release plan could well mean you’re risking your home and living on a reduced income. If you have health conditions then ask your IFA about Enhanced Equity Release plans.
There are many people who are oblivious to Enhanced Equity Release plans. Health-related conditions that can be considered minor, such as smoking ten cigarettes for a decade could mean you’re entitled to increased rates that a standard equity plan may not provide for you. Using a specialist financial advisor to seek the best rates available for you is the best you can do for yourself and make your home work for you.
Your health might be a hindrance in your life, then make the most of your ill-health and get the money that is rightfully yours with the right plan. Simply choosing the first available standard plan and being attracted by an increased monthly income is a costly matter. Get what you’re rightfully entitled to by using the services of a specialist financial advisor to source your Enhanced Equity Release plan.
