Income protection
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Beverley_Hillbillies
Posts: 169 Forumite
We are a couple, not married but have a joint mortgage (been together 20+years, joint mortgage since 2003)
One of us has mortgage cover, i.e. outstanding mortgage balance is paid in the event of death.
Other one has lump sum life insurance.
Both policies pay out immediately if a terminal illness is diagnosed and death is expected within 12 months.
One partner 56, other 49, here's where we need advice:
Is it just income protection we require?
Can we get a joint policy?
Any disadvantages using a comparison site?
One of us has mortgage cover, i.e. outstanding mortgage balance is paid in the event of death.
Other one has lump sum life insurance.
Both policies pay out immediately if a terminal illness is diagnosed and death is expected within 12 months.
One partner 56, other 49, here's where we need advice:
Is it just income protection we require?
Can we get a joint policy?
Any disadvantages using a comparison site?
0
Comments
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Any disadvantages using a comparison site?
They dont do a needs analysis and tell you what you need. The products tend to be focused on price rather than quality.
Plus, in the case of income protection, most comparison sites do not offer the main type. Just the budget PPI version which is easy to sell and pays a better commission. The main type of income income protection (PHI) is mainly retailed via IFAs and whole of market advisers.
Its a personal insurance.Can we get a joint policy?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Are your life policies in trust to one another? If not, they will each pay into the policyholder's estate, possibly cause Inheritance Tax to be due that could otherwise be avoided and in the end pay out according to the deceased's will or, worse, under the law of intestacy whcih, if you are not married, means the surviving partner will see none of it.
Even if the will does leave it to them, they will wait some months for probate before they can get it. By comparison, if it is in trust then all that is needed is a death certificate and it the insurer will pay out in accordance with the trust - which can be different to what the will says.
You should still make wills, though.0 -
Your post has made us question whether we have the correct wording and policies in place.magpiecottage wrote: »Are your life policies in trust to one another?
We have individual will's which each one of us is a beneficiary in the event of the other one's death.
Based on the replies in this thread, it's clear we need to seek advice from an independent financial advisor.
Other than yellow pages, any suggestions where we can find one industry approved?0 -
Other than yellow pages, any suggestions where we can find one industry approved?
https://www.unbiased.co.uk is the main database for the uk. You can post code search. They also check the qualifications and authorisations before allowing someone to be listed. They also only allow IFAs and whole of market advisers (not single tied or limited panel)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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