Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • CaPPsiE
    • By CaPPsiE 2nd Dec 17, 11:11 PM
    • 95Posts
    • 9Thanks
    CaPPsiE
    Life insurance pointers
    • #1
    • 2nd Dec 17, 11:11 PM
    Life insurance pointers 2nd Dec 17 at 11:11 PM
    Hi All,

    I'm looking for some bullet-point pointers on life insurance. I'm aware of some of the high-level stuff like 'decreasing term' and 'level term' but I was also interested in a lot of the 'gotchas' and things to watch out for and the like. For instance, a claim cannot be made within 12 months or a policy has caveats which neuter the cover until the 12-month marker etc.

    I would really appreciate your advice.

    Thanks,
    Adam.
    Thanks,
    Adam.
Page 1
    • csgohan4
    • By csgohan4 3rd Dec 17, 8:34 AM
    • 4,010 Posts
    • 2,497 Thanks
    csgohan4
    • #2
    • 3rd Dec 17, 8:34 AM
    • #2
    • 3rd Dec 17, 8:34 AM
    have a look at the life assurance section of the MSE website it has a good article on it




    https://www.moneysavingexpert.com/life-insurance/
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Aretnap
    • By Aretnap 3rd Dec 17, 10:13 AM
    • 2,840 Posts
    • 2,338 Thanks
    Aretnap
    • #3
    • 3rd Dec 17, 10:13 AM
    • #3
    • 3rd Dec 17, 10:13 AM
    For instance, a claim cannot be made within 12 months or a policy has caveats which neuter the cover until the 12-month marker etc.
    Originally posted by CaPPsiE
    Mainstream policies have no such exclusions - other than for suicide, which is often not covered in the first 12 months (so as not to encourage people in financial trouble to think that they can help their families by taking out a big life insurance policy then killing themselves).

    Life insurance is actually quite a simple product. You answer some questions about your medical history, the insurer gives you a price based on the answers (or doesn't if they think you're at too high a risk of dying) and it pays out if you die. There are not generally long lists of exclusions and the only common reason for not paying out (other than you not being dead) is if you didn't answer the questions accurately.

    There are some niche policies (sometimes marketed as "over 50s plans" which ask no questions about your medical history and guarantee to accept you regardless of your health - but don't pay out if you die on the first 12 months ( they may return your premiums instead). That might be what you're thinking of. However such policies are usually poor value compared to a mainstream policies, even for over 50s, and are best regarded as a last resort for people in seriously poor health who can't get mainstream policies.
    • dunstonh
    • By dunstonh 3rd Dec 17, 10:56 AM
    • 89,853 Posts
    • 56,512 Thanks
    dunstonh
    • #4
    • 3rd Dec 17, 10:56 AM
    • #4
    • 3rd Dec 17, 10:56 AM
    but I was also interested in a lot of the 'gotchas
    There are very few of those with life assurance. It is one of the easiest plans to understand with very few issues (in terms of pure protection).

    For instance, a claim cannot be made within 12 months
    Not on mainstream policies. Are you sure you are looking at sites that are referring to UK and not other countries?
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

136Posts Today

2,461Users online

Martin's Twitter
  • I realised I forgot in my links earlier. 1. Help to Buy ISAs, how they work and best buys...? https://t.co/BSCNPeqiVF

  • RT @whatdawndid: Thanks to uncle @MartinSLewis I just received £200 back, just like that from the student loan company! Turns out that the?

  • RT @LaraLewington: Shocked and saddened by Cheggers news. Working with him on It?s A Knockout was my 1st job in telly when I was just 19. H?

  • Follow Martin