Level Term Assurance Discussion

Former_MSE_Andrea · 8 November 2004 at 7:30PM

This discussion relates to the Level term assurance article.

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Edit 12 September
This article has been updated and a new thread started here.

payless · 8 November 2004 at 7:41PM

winning brokers are execution only

great if someone knows what they want, but judging from questions posted here/ emailed to me , I do wonder if there are people buying execution only that don't really fully understand the product they are buying. and with so much rebroking happening , to get lower prices / change in circumstances - not sure if full "saving over term " would be achieved in high % of cases.-

Writing in trust..... This is relatively easy to do

would be interested to know what % of execution only cases are actually written in trust

davidjmoore · 25 November 2004 at 6:08AM

Martin States;
An Unpleasant Fact. If you are wondering why it is life ‘assurance’ not ‘insurance’, that’s because assurance is for something that is certain to happen, insurance is where there is only a risk of it happening….. and death is assured.

If you are taking a policy for a specific term then death is NOT guaranteed, so it is insurance. The only time you can have life ASSURANCE is on policies written for whole of life. So Martin is incorrect to use this term in relation to Level Term Policies !!!!

dunstonh · 25 November 2004 at 12:16PM

No, it is still correct to use "assurance" as you are still going to die at some point. It may not be in the term but it relates to to what is being insured.

nkitson · 26 November 2004 at 1:20PM

A warning and a question!

I've got what should be a decent pension when I start drawing it in 10 years time. Its a final salary, index linked scheme. If I die once I have started drawing the pension my wife will get 2/3rds of my pension. All very good.

However, if I die before I start drawing the pension, my wife will get a moderate lump sum and a tiny pension - The lump sum looks generous but if I do my sums, its nowhere near enough to compensate.

Watch out for this one.

And the question - does anybody know of a family income type policy where the term (the period the life company is at risk) can be, say, 10 years but the income benefit (if I die within 10 years) pays out until my wife dies? If I can't find anything else I will get term insurance for 10 years and if I die my wife can use the money to get an annuity or whatever is most suitable at the time.

dunstonh · 26 November 2004 at 1:54PM

And the question - does anybody know of a family income type policy where the term (the period the life company is at risk) can be, say, 10 years but the income benefit (if I die within 10 years) pays out until my wife dies? If I can't find anything else I will get term insurance for 10 years and if I die my wife can use the money to get an annuity or whatever is most suitable at the time.

Family income benefit plans still exist but not widely used any more . Many insurance companies pulled out from offering them as the majority got commuted to lump sum at a loss to the beneficiary. Plus, not as many were being sold and they became less competive/value for money when compared with a level term assurance plan.

kilo_2 · 7 December 2004 at 10:37PM

Unless I have missed something a heading for Level term assurance already exists on this board!

HACZ · 10 December 2004 at 1:13AM

Linda, during my seven or so years as a finacial adviser or "insurance salesman" to give me my working title, I have found that for level term assurance that is less than about £100k for a relativeley fir individual then there is a low likelihood of being asked for full medical disclosure.

I would also reccommend critical illness as despite my job, i never took on critical illness for my family as i never thought it would happen to me. That was until three years ago when my wife was diagnosed with a brain tumour. Fortunateley my wife is ok but if I had had critical illness cover then my mortgage could have been paid and the financial prssure at least would have been alleviated.

Good luck and shop around on some of the online sites to get the best deal!

ranger_2 · 29 December 2004 at 7:48PM

I really don't have a clue about Insurance and arranged term life assurance through my mortgage adviser, it is about 2 years old and is with Norwich Union (there is also still 23 years to go on my mortgage)

I have just used the Cavendish website for a quote and is is working in about £6 a Month cheaper with them, again it is Norwich Union, am I able to take out this new policy and cancel the old one even though it is the same company?

dunstonh · 29 December 2004 at 10:11PM

Yes you can.

Life cover has dropped in price a fair chunk over the last 6 years. Just make sure you dont have critical illness cover already as the conditions covered on older plans tends to be wider range and less terms than newer plans.

MimiJane · 4 January 2005 at 5:49PM

I've been doing some research for my other half and Sainsbury's life assurance appears to be FAR cheaper than every other company I've looked at so far (works out at about 5 times cheaper than Norwich Union, unless I'm doing something very wrong!). It includes critical illness cover also.

No doubt there are other companies offering it cheaper, but it seems to be highly competitive and is of course an established company/bank.

Any comments?

Level Term Assurance Discussion

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