KEVIN Simpson of financial advisors Blue Trust answers some commonly asked financial questions.
Q I have my own personal pension plan that I have contributed to for many years. I have recently moved jobs and my employer offers a company pension scheme that they contribute to, should I join that and do I have to cancel my Personal Pension.
A The Answer is if your new employer is contributing to the company scheme it is normally in your best interests to join. You can however if you want to carry on paying into your personal Pension scheme but before you make that decision take some advice.
Q I am a single parent with a young child and my parents keep on at me to arrange a will, why is this important
A The biggest reason to arrange a will for you is to ensure that in the event of your death there will be someone that you nominate to look after your child as there Guardian. If you die without a will (intestate) then it means that the Guardianship of your child will be decided by the Courts.
Q As a single person do I need life assurance, and if not what protection is appropriate?
A Generally, no The main purpose of life assurance is to provide money for any dependents you may have - usually a spouse/ partner and children. You could consider a critical illness policy, which would pay out a lump sum in the event of your contracting a specified critical illness, This would be perfect to protect a mortgage as your mortgage would be paid off in full in the event of this happening. Also consider what would happen in the event of your being unable to work long term, If you are paid from work find out how much and for how long. Don’t forget you only have yourself to rely on if anything like this happened.