J001010 - Lycetts Newsletter Jan 2024 LR - Flipbook - Page 25
BU L L
PROT EC T ION
Investing in a quality stock bull has become increasingly
expensive in recent years. The average price at breed sales is
currently running at around £7,000 a head, with many farmers
spending a 昀椀ve-昀椀gure sum to achieve the quality and breeding
lines they require. Consequently, it has never been more
important to ensure this investment is adequately protected,
and that you are aware of all available options.
Matt McWhirter
Divisional Director, Ayr
Mortality/humane destruction is the most
straightforward cover, offering protection should
your bull die or need to be destroyed due to
accident or illness. However, this does not cover a
bull should it become unable to serve or settle cows
in calf due to accident or illness. For such additional
cover, a ‘loss of use’ extension is required.
Our recommendation would always be to insure
bulls for both mortality and ‘loss of use’ despite the
extra cost. Issues over claims where injury or illness
is potentially the cause of either the bull’s infertility
or his ability to settle cows, and where the bull is
destroyed on economic rather than humane
grounds, are not uncommon. In such instances the
basic mortality option would not provide cover
unless a ‘loss of use’ extension was in place.
As with all insurance policies it is important to be
aware of any specific clauses and warranties, and
equally important to arrange cover through a broker
or provider fully conversant in the livestock
insurance market, who can knowledgeably assist
and advise should a claim occur.
SH A K I NG U P PENSIONS
17 years of pensions legislation are to be ripped up when Government removes the pensions
lifetime allowance (LTA) on the 6th April 2024. This will allow big changes to how individuals
potentially draw bene昀椀ts. It also raises the question for individuals, who were previously advised
to no longer make pension contributions, to reconsider whether this remains appropriate.
Emily Young
Financial Adviser,
Newcastle
The government’s main objective in abolishing the
LTA is to encourage people to return to work, in
particular those aged 50 and above, who may have
taken early retirement during the Covid pandemic.
At the same time the government also wants to
encourage individuals within the medical
profession not to leave the industry due to their
pension benefits being affected by the LTA.
This is certainly the biggest shakeup of pensions
since the introduction of Pension Freedoms
legislation in April 2015. This area of financial
planning can be complex so spending time
understanding your options before taking any
action is a prudent approach to take.
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