Life insurance question, level term

MrMajic

Hi all

I'm sure this has been asked before, so sorry, but:

I'm looking into insuring a figure of £300,000 for myself and my wife (we're in our mid 30s). I've had quotes ranging from £32per month for level term including terminal illness (is terminal rather than critical significant?) with Norwich Union

Direct line was £180odd per month?

At the moment I pay around £70-80 or so for (iirc) £100,000 cover.

Is the £32pm too good to be true, or am I just paying too much at the moment?

Thanks in advance.

MrMajic

Edit: I've checked the difference. It's critical or terminal that's the key factor.

dunstonh

is terminal rather than critical significant?)

Highly significant.

At the moment I pay around £70-80 or so for (iirc) £100,000 cover.
Is the £32pm too good to be true, or am I just paying too much at the moment?

You expect small differences but a difference of £70-80 compared to £32 suggests you are not comparing like for like.

Wutang_2

dunstonh wrote: »

Highly significant.


You expect small differences but a difference of £70-80 compared to £32 suggests you are not comparing like for like.

All I can hear is "speak to an IFA, speak to an IFA". It is critical you do this (but not terminal).

MrMajic

Thanks all, I've looked into it and am aware of the critical vs terminal choice.

OshayAway

It's also a good idea to take advice due to variations in critical illness policies. There are several areas that they differ but it's not very easy to compare at-a-glance.

In particular the number of conditions covered (when it will pay out) and the quality of the definitions including the exclusions imposed (when it won't pay out). This can be a little technical but a good adviser will be able to simply state the differences and options.

The good news is that it's not a case of the more expensive the cover the better it is. In fact, some of the insurers who have the most comprehansive policies have recently reduced thire rates.

Also, make sure you deal with a IFA / broker who is whole of market for protection.