Life Insurance, Crit illness etc

watsonnicole1

Hi All,

WOW! My mind is boggling I tell you :rolleyes:

Just about to give birth to my first baby and figured I should look into making sure he will be OK should anything happen to me, But i'm so confused! The only thing that actually seems to make sense is the FREE £10k Aviva is offering for the next year (which is quite good really, You just never know :rolleyes:)

I am 27 (28 Oct) Been looking at all sorts of plans.. But I simply don't get it they all seem so different..

I am correct in thinking for example Aviva.. You can only cover upto your 70 and after that the policy just finishes and if I were to die at 71 my child would get nowt?

Am I looking at the wrong kind of things? I want something that would mean when I do eventually pass my child(s) will get something not just a maybe after me paying £15 a month for 50 years.. Is there such a thing? Or is it best to just have a smaller policy (unless he leaves education) and save instead?

Need something for my partner too.. He has 2 children already (this will be his third) But we're going to get seperate policies I think.

Thank You for any light you may be able to shed.

dunstonh

The only thing that actually seems to make sense is the FREE £10k Aviva is offering for the next year (which is quite good really, You just never know :rolleyes:)

Its a bit of a marketing gimmick though and £10k wont go far.

But I simply don't get it they all seem so different..

Correct. There are about 15 generic types of life assurance. Although typically there are only really 4 main types used for protection purposes nowadays. However, each provider will have things they may or may not include into each plan. They are not all the same and should never be measured by price alone.

I am correct in thinking for example Aviva.. You can only cover upto your 70 and after that the policy just finishes and if I were to die at 71 my child would get nowt?

Yes.

I want something that would mean when I do eventually pass my child(s) will get something not just a maybe after me paying £15 a month for 50 years.. Is there such a thing? Or is it best to just have a smaller policy (unless he leaves education) and save instead?

You have two objectives and need two things. One to cover a life assurance need and one to cover a savings need. You used to be able to do it all in one but the plans that did that are obsolete, expensive, not tax efficient and no-one offers them anymore. They were called endowments.

Need something for my partner too.. He has 2 children already (this will be his third) But we're going to get seperate policies I think.

As you are not married and there are children from a different relationship then you will almost certainly need to be looking to put the life assurance into trust as well to ensure the right people get it and you dont create an IHT liability in the process.

allegro_2

I really need some advice. I'm 51yrs old & realised this past month since the death of my Mum that I should insure myself so that my children dont end up being out of pocket regarding funeral costs. I have looked at funeral plans, but am drawn towards life assurance but am concerned as it will only cover up till 85years, what happens then? I want something that will pay out when ever it is I die. Any advice would be appreciated. I might add that I have almost no estate from which they could take funeral costs. Thanks

dunstonh

allegro wrote: »

I really need some advice. I'm 51yrs old & realised this past month since the death of my Mum that I should insure myself so that my children dont end up being out of pocket regarding funeral costs. I have looked at funeral plans, but am drawn towards life assurance but am concerned as it will only cover up till 85years, what happens then? I want something that will pay out when ever it is I die. Any advice would be appreciated. I might add that I have almost no estate from which they could take funeral costs. Thanks

Please start your own thread as its considered rude to hijack someone elses. Especially when its one that is still in progress. Copy and paste your text into a new thread and you should get responses.

kevin_c_3

you can buy life cover that runs until you pop your clogs (whenever that may be) but it is much more expensive than term assurance (which lasts for a set period of time) and usually you need to keep paying the premiums until you pass away, which could be beyond retirement, and who knows beyond the age of 100!

these policies are known as 'whole of life' plans are can either be investment linked or purely insurance, tho the latter is again more expensive as you're not relying on investment performance, however, these plans are usually used for inheritance tax planning, rather than protecting the family

many will say that the main point of life cover is to look after people who are dependent on you (and your earnings) which is why many people take life cover until the mortgage is paid off or until the children have grown up

sandsy

Why not look at doing a term assurance policy in trust, as previously mentioned? And separate saving for your kids, perhaps through their child trust funds?

stephenni1971

SergeyLEM wrote: »

I have never dealt with voluntary life insurance. So this theme is interesting to me.

You sir are a spammer - and making daft posts to improve your post count.