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  • FIRST POST
    • Former MSE Wendy
    • By Former MSE Wendy 1st Oct 10, 12:20 PM
    • 868Posts
    • 1,782Thanks
    Former MSE Wendy
    Level Term Life Insurance Guide Discussion
    • #1
    • 1st Oct 10, 12:20 PM
    Level Term Life Insurance Guide Discussion 1st Oct 10 at 12:20 PM
    This thread is to discuss the Level Term Life Insurance guide.

    Click reply to discuss.
    Last edited by Former MSE Wendy; 05-10-2010 at 8:26 PM.
Page 21
    • Amontylado
    • By Amontylado 25th Nov 16, 10:03 AM
    • 65 Posts
    • 71 Thanks
    Amontylado
    Ah I see. Thanks busicat.
    Any idea which companies offer the best CIC? I.e. Cover most illnesses?
    Also I don't understand why the amount of cover for CIC is so low relative to mortgage cover. The offer seems to be only 10% of the mortgage amount. If I suffer an illness which prevents me from working (I'm self-employed) then that is not going to go very far. I'm new to this area of insurance so not very clued up!
    • kingstreet
    • By kingstreet 25th Nov 16, 11:00 AM
    • 32,210 Posts
    • 17,250 Thanks
    kingstreet
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Amontylado
    • By Amontylado 25th Nov 16, 12:15 PM
    • 65 Posts
    • 71 Thanks
    Amontylado
    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
    • By thebigbosh 11th Jan 17, 10:35 AM
    • 257 Posts
    • 909 Thanks
    thebigbosh
    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
    School is important, but Rugby is importanter.
    • Chris Pollard
    • By Chris Pollard 12th Jan 17, 4:45 PM
    • 87 Posts
    • 33 Thanks
    Chris Pollard
    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
    • By VfM4meplse 15th Jan 17, 8:27 PM
    • 23,905 Posts
    • 50,148 Thanks
    VfM4meplse
    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?
    Value-for-money-for-me-puhleeze!

    "No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio

    Hope is not a strategy ...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...If in doubt, don't pull out... I love chaz-ing!
    • Ellemick
    • By Ellemick 6th Mar 17, 3:25 PM
    • 2 Posts
    • 0 Thanks
    Ellemick
    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
    • By dunstonh 6th Mar 17, 3:54 PM
    • 89,536 Posts
    • 55,976 Thanks
    dunstonh
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • PendleJ
    • By PendleJ 18th Apr 17, 5:01 PM
    • 1 Posts
    • 0 Thanks
    PendleJ
    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
    • By Weighty1 18th Apr 17, 7:16 PM
    • 212 Posts
    • 76 Thanks
    Weighty1
    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
    • By sue23 21st Apr 17, 3:13 PM
    • 123 Posts
    • 37 Thanks
    sue23
    confused which life insurance to go for !
    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.
    Last edited by sue23; 21-04-2017 at 3:18 PM.
    • dunstonh
    • By dunstonh 21st Apr 17, 3:37 PM
    • 89,536 Posts
    • 55,976 Thanks
    dunstonh
    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 ?
    What financial need do you have that requires 55 years of cover?

    Do people even take level term insurance for such long periods of time i.e 55 years ?
    Very few people will have a financial need for life assurance that long.

    And the only reason for taking it till we are 85 is so we have more chances of the policy paying out.
    Statistically, correct. However, statistically you are unlikely to be dead before 85. So, paying more each month for something you dont need just to slightly increase the odds of death occurring when you dont need the money seems a bit pointless.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • sue23
    • By sue23 21st Apr 17, 5:03 PM
    • 123 Posts
    • 37 Thanks
    sue23
    Fortunately we don't have any financial need as such, as we have paid off our mortgage, but just thinking it would be nice to leave a lump sum for the children, if the worse happens
    • qbazdz
    • By qbazdz 27th Apr 17, 1:32 PM
    • 138 Posts
    • 14 Thanks
    qbazdz
    so.. we're about to take a level term life and separate critical illness policy to protect ourselves and our home and we had a recommendation to take only the policy to cover the length of the mortgage and than if we wish to later purchase new policy to cover a longer period of time as our circumstances change.

    Is that the usual approach?
    In our case life policy up to 65 vs 75 is only a couple of pounds more expensive pcm, while 65 vs 85 is almost double.
    Critical illness is at least 20 more expensive pcm for both of us when increasing the term from 65 to 75y. Adding another 10y is another 40pcm on top..

    Im struggling to understand that kind of approach where you'd only insure for what you need now and for the term you need, but obviously have no idea how the costs look like when you take a new policy later to extend the cover.
    • dunstonh
    • By dunstonh 27th Apr 17, 2:53 PM
    • 89,536 Posts
    • 55,976 Thanks
    dunstonh
    so.. we're about to take a level term life and separate critical illness policy to protect ourselves and our home and we had a recommendation to take only the policy to cover the length of the mortgage and than if we wish to later purchase new policy to cover a longer period of time as our circumstances change.

    Is that the usual approach?
    No. You cover the financial need. No more, no less.

    You should have a decreasing term assurance for the mortgage and a level term assurance or family income benefit for any family protection you want on top of that. The term of the policies would likely differ (as your family protection needs are unlikely to match your mortgage term - possible, but statistically unlikely)

    You would not normally take out cover beyond your needs either.

    You would not normally take out a level term assurance to cover a repayment mortgage. Complaints have been upheld on that basis with the FOS.

    In our case life policy up to 65 vs 75 is only a couple of pounds more expensive pcm, while 65 vs 85 is almost double.
    So, that would mean you would pay more each month covering an amount you dont need. Then in later life when most people have no financial need beyond retirement, you would be paying for something you dont need.

    Im struggling to understand that kind of approach where you'd only insure for what you need now and for the term you need, but obviously have no idea how the costs look like when you take a new policy later to extend the cover.
    If you have a later financial need then you buy for that need then. You dont know what your financial needs are going to be in future so the chance of you buying exactly what you need now are very remote. Plus, you are paying now every month if you do that. So, absolutely no point.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • kingstreet
    • By kingstreet 27th Apr 17, 5:04 PM
    • 32,210 Posts
    • 17,250 Thanks
    kingstreet
    Won't your need for lump-sum protection end when you retire? That's the usual end-date for cover to protect a non-working spouse.

    For most people, savings takes over the coverage for funeral expenses post-retirement.

    At that age, life cover for inheritance tax mitigation is about the only need I can imagine.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • qbazdz
    • By qbazdz 27th Apr 17, 11:21 PM
    • 138 Posts
    • 14 Thanks
    qbazdz
    Thanks guys.
    We both work, so my thinking was that the life cover for a bit longer than our mortgage will give either of us or our child(ren) ability to do whatever we want with the house if the mortgage doesn't get repaid if worse was to happen earlier or some sensible amount to move somewhere closer to the rest of the family and cover any funeral arrangements etc.

    This sounds like the usual/most obvious would be:
    - decreasing term life insurance to cover mortgage term and the house
    - critical illness for the same term as a level cover but for a smaller amount
    is that correct?

    Thanks!
    • familyguy321
    • By familyguy321 2nd May 17, 4:29 PM
    • 47 Posts
    • 9 Thanks
    familyguy321
    Need a bit of advice on cancelling my life insurance cover...

    I took out a Critical Illness with Life Cover policy with FriendsLife a couple of years ago when i bought my house. My premium is fixed at ~£20/month and the critical event benefit decreases as per my mortgage protection schedule.

    Now, I am currently contributing into my company pension scheme and it came to my attention that, as a member, I am entitled to benefits in the event of death of ill health. The amount paid out is based on my salary.

    The question is, what advantage is there of continuing with the FriendsLife policy?

    Thanks in advance.

    FG
    • HappyHarry
    • By HappyHarry 2nd May 17, 4:40 PM
    • 438 Posts
    • 687 Thanks
    HappyHarry
    Need a bit of advice on cancelling my life insurance cover...

    I took out a Critical Illness with Life Cover policy with FriendsLife a couple of years ago when i bought my house. My premium is fixed at ~£20/month and the critical event benefit decreases as per my mortgage protection schedule.

    Now, I am currently contributing into my company pension scheme and it came to my attention that, as a member, I am entitled to benefits in the event of death of ill health. The amount paid out is based on my salary.

    The question is, what advantage is there of continuing with the FriendsLife policy?

    Thanks in advance.

    FG
    Originally posted by familyguy321
    Advantages of keeping it are:
    (i) If you die, your employer's plan and the Friends Life plan both pay out.
    (ii) If you suffer a critical illness, the Friends Life plan pays out.
    (iii) If you move jobs in a few years' time, you will be able to keep the cheap Friends Life plan you have in place.

    Disadvantages are:
    (i) It costs £20 per month
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • kingstreet
    • By kingstreet 2nd May 17, 5:10 PM
    • 32,210 Posts
    • 17,250 Thanks
    kingstreet
    familyguy - do you have anyone financially dependent on you?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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