What insurances to get, life, income redundancy protection???

minority

I am currently looking for insurance.

I thought it was time to get some life insurance to cover my mortgage since I have achieved my goal (got quote before for £45 for 2 ppl due to weight etc) and now that I I have lost weight (16st 9 to 12st 7) I am looking to get me and the oh insured.

I have had a quote via Asda for £16.33 a month via Bupa for the decreasing Mortgage life insurance and critical illness which I think is good.

The person said that she would recommend insurance where if I am signed off work for extended period of time it would pay out after my statutory sick pay had finished and that this would be better to have or to take it as well to ensure that things like bad back etc were covered as they are not in the above quote.

I have also asked about redundancy protection (should I?) she said this is not so important but I thought it was in the current climate as it would allow me to cover the bills while finding more work if it ever happened. Currently I do not think my job is at risk (I work for university currently modernizing there system and they putting alot of money into training me as well).

What is your advice?

I need something to cover two people for mortgage up to £92000, and suggestions on the income support and redundancy insurance would be great.

Forgot to add would saying that I go to the gym (6 times a week) help in reducing costs? I currently have a personal trainer and have been doing this for around 7 months now.

Wutang_2

minority wrote: »

What is your advice?

I think you need to speak to an IFA

dunstonh

I have had a quote via Asda for £16.33 a month via Bupa for the decreasing Mortgage life insurance and critical illness which I think is good

That does seem cheap. Although it would be about right if you are in your 20s and early 30s and on clean health.

If the premium is reviewable, that would make it cheaper (but not better) and if you are mixing up terminal illness and critical illness then it may account for it as well.

A £45 drop to £16 seems too large for normal rebrokering on a like for like basis.

minority

The 45 one was actually £20 when it was checked but they did a medical and due to weight etc it was increased so much that I refused it (over a year ago) now that I am in good health within normal weight for my height I want to check again.

brianrhill

Decreasing life and critical illness cover is cheaper in premium terms than level cover, which is cheaper than increasing cover. Many people make the mistake of not planning ahead with their insurance cover. For instance, the life cover quote you have aims to cover your current mortgage, but in the event that you need to increase your mortgage sometime in the next 20 years or so, you'll have to take out another policy which will cost you more as you will be older. Critical illness insurance premiums also increase dependent upon your age.

Do not underestimate the effect of inflation on the sum assured. Insuring yourself for £100,000 today, assuming inflation @ 4%, would in real terms be only worth a little over £45,000 in 20 years time.

There are also other premutations of cover, including "renewable", "convertible" etc. It really is best to seek professional advice on this as opposed to picking up something in your weekly shopping trip.

In addition to this, not all critical illness policies are the same, far from it. There are anumber of standard definitions that all insurers stick close to, but some add to that, and there is a whole bunch of small print with it as well. Critical illness policies should be ideally written for as long as possible.

Interestingly, the higher your premium, the higher risk you are deemed to be, and therefore the more likely that you need to take it out!

I would also suggest that individual policies are often more preferable to joint policies. And you may wish to consider the advantages/disadvantages of writing policies into trust.

Not as straightforwards as you might initially think!

Good Luck

Brian

johnbfan

We've just had a pay out from a critical illness insurance. My husband had a cancer operation in October. He is not having chemotherapy as the oncologist says its not necessary considering the benefit he will get from it. He is technically cured. I thought the insurance company would take this as a 'no pay' situation but they have paid. He is off work for a while recovering from the operation and shock and the money is very useful to help us keep going until he returns to work.

I often wondered whether it was worth continuing the policy after over ten years of paying a monthly premium and the answer was definitely Yes. it has made such a difference to our lives at this time. We have no money worries whilst he is off work. Its such a relief.