Level Term Life Insurance Guide Discussion

kingstreet · 25 November 2016 at 12:00PM

It may be an idea to come out of this discussion thread and open a thread of your own so you get more focused help.

Ask about income protection which seems more relevant to you than critical illness cover.

Amontylado · 25 November 2016 at 1:15PM

Thank you - I'll try reading up on it a bit more first, then I might be able to ask a sensible question!
Many thanks for the suggestion.

thebigbosh · 11 January 2017 at 11:35AM

This may have been answered previously but quite a few pages here and it's not mentioned in the main article.

We took out decreasing mortgage assurance cover 2 years ago when we bought our first house. Now remortgaging, and looking to drop the term to 21 years. Is it worth re-doing the life assurance too?
Cheers

Chris_Pollard · 12 January 2017 at 5:45PM

TBB...the only answer is "it might be worth it". If you're still in the same health, and the cover is less, and the term shorter, you might save some money with a new policy. Make sure you match the premium basis, for example, if your existing policy guarantees your premiums for the whole term, match this on any new quote you get. Most importantly, if you do take a new plan, DON'T cancel the existing cover until the new insurance is in place.

VfM4meplse · 15 January 2017 at 9:27PM

I am so glad this thread is still alive.

I need to sort out some life insurance (?assurance). Basically something held in trust that can help to dig my estate out of probate / cover the IHT when the time comes. I'm no longer covered by a work policy, any recommendations on where to start and what to avoid?

Ellemick · 6 March 2017 at 4:25PM

Hi all
In 1999 my husband & I took out Level term Assurance with Critical Illness ( 25 years) with Legal & General, (encouraged to do so by a mortgage shop when arranging our first mortgage). I was wondering what the conversion option actually means?
It states:
“You may convert this policy to a savings, endowment or whole life plan without further medical information at any time up to the age of sixty”.

Hate the idea of losing all we've paid in, so would converting be a good option? What should we convert it to?
Advice really appreciated

dunstonh · 6 March 2017 at 4:54PM

In 1999 my husband & I took out Level term Assurance with Critical Illness ( 25 years) with Legal & General, (encouraged to do so by a mortgage shop when arranging our first mortgage). I was wondering what the conversion option actually means?

it allows conversion to another type of policy without requiring new underwriting.

Hate the idea of losing all we've paid in, so would converting be a good option?

The last mainstream provider of endowments pulled out in 2004. It is an obsolete option. Endowments would cost around 10 times what you paying (if it was still available)

Don't hate the idea of losing what you have paid. It means you are still alive.

PendleJ · 18 April 2017 at 5:01PM

I have had £80,000 life & critical life insurance for 8 + years and pay £35 month.

I have recently taken an a new mortgage and need to increase my life insurance to £280,000 and I'm almost 50 years old.

I've looked at taking out life cover only for £200,000 and keeping my life and critical, but best quote I've had is £38 per month. this means i'm paying out £73 month in life insurance, which I cant afford.

I'm considering canceling the life & critical, and just taking life only on £280,000, but Its a huge lottery, and the life/critical would pay out if I got a critical illness that forced me to be off work for a long period of time.

feedback would be beneficial in assisting me making a decision.

thank you

Weighty1 · 18 April 2017 at 7:16PM

What's more important to you, having the mortgage repaid if you die or having the money to keep up the mortgage payments for a few years if you don't die but are seriously ill?

Answer that question and the decision is pretty much made for you.

sue23 · 21 April 2017 at 3:13PM

hello everyone,
Me and My partner are in our 30's and looking to take out life insurance but confused whether to choose the whole of life insurance option or the level term. Would it be cheaper if we took out 55 years on level term assuming we will covered till we are 85 years old or for long periods like this should we rather take whole life insurance policies.Do people even take level term insurance for such long periods of time i.e 55 years ?
Just to add we don't have commitments interms of mortgage as we own the house but have kids and looking to take life insurance , as a bit of safetynet.
And the only reason for taking it till we are 85 is so we have more chances of the policy paying out.

Level Term Life Insurance Guide Discussion

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