Help me understand Life Insurance

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
2 replies 546 views
The_Pink_FlamingoThe_Pink_Flamingo Forumite
9 Posts
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
I want to get myself and my husband insured

I think that i want a lump sum if anything should happen rather than doing to mortgage protection etc.

Is this what is called Level term Assurance or have i got it wrong?

Also do you take out a joint policy or a seperate one in each name and how long should i take it out for?

Any help would be gratefully recevied :beer:

Replies

  • I'd like this advice too - if anyone has good tips please post for us.
  • I can only comment on my experiences- we're buying a house and are taking life assurance.

    I think the term Level Term refers to the sum covered - ie its fixed over the life of the policy.... If you insure your lives for £150,000 - whether you claim today or in 10 years, you'll receive £150,000

    The alternative is Decreasing term - which is used mainly in line with a mortgage to cover it in the event of death. ... so if your mortgage is £150,000 in year 1, if you died you'd broadly be paid out £150,000 - in year 25 (When mortgage is near paid) you may only get £1

    I dont know your situation, but I plan to take out a decreasing term policy to secure the mortgage for me and my fiance -then when kids come along in a few years time, I'll look to get a new life policy to pay out a guaranteed lump sum to fund funeral expenses, university fees etc etc etc.....

    Hope that helps.
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