life assurance.

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
5 replies 560 views
waynewayne Forumite
317 Posts
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
hi can someone try and explain to me in simple terms why i need both payment protection and life assurance.am i right in thinking if i get a life assurance policy with critical injury and sickness cover i dont need the p/p?I pay £19.31 a month for the p/p and £50.91 a month life ins. so i,m looking to bring these down if poss.Can i just do a life !!!.to cover my mortgage (82,000)and rely on the p/p to cover any other eventualities?also the company i work for does a 3 times annual income if i die whilst in thier employ this would work out at about 62,000 pounds.hope you can make sense of this and will appriciate any advice.thanks in advance.

Replies

  • lightspeedlightspeed Forumite
    246 Posts
    I am by no means an expert (in fact, quite the opposite).

    But i have also wondered the same thing thing. It appears (to the untrained eye) that if you had both CI and PP, both would payout, one to pay potentially pay off the mortgage and the other to continue paying off my now non-existent mortgage.

    I have pondered with what insurances to take out and am still non the wiser as to which is best value for money. The only one that i see the 100% benefit of would be life insurance because its reasonably priced and there is no grey area as to when it pays out (you are either dead or not).

    You may be interested in reading http://www.abi.org.uk/Display/File/Child/452/ABI_CI_Definitions_Guide_2004.pdf. This is what made me question the actual value of CI cover.

    It maybe worth reading the small print as to what PP pays out for and then what CI pays out for, then see how much of an overlap there is.
  • moneywise_2moneywise_2 Forumite
    74 Posts
    hi wayne


    life insurance is to cover in case of death any responsibility you got left for your familiy, This will include young children (typical under 16 because they can't make their own living yet) your debt (including mortgages and personal loan credit ) and any other committment you have make ( for example have a house in spain with your partner when you are 50 )

    for Critical illness is to cover in case of seriously ill you may required large sum of money for medical or private hospital or for medicine or for carer .
    and also for the time being you are out of work and no employer is going to paid you when you not working for them , so you family needed money to survive if they are depend on your income.

    finally for Payment protection is to protect your payment in case if you can't paid for the premium . so is like insurance on insurance

    thanks
    No Spend Required ! If I "Thanks" you Please "Thanks" me back ! Many "Thanks" !
  • moneywise_2moneywise_2 Forumite
    74 Posts
    Well for life insurance is to cover in case of death any responsibility you got left for your familiy, This will include young children (typical under 16 because they can't make their own living yet) your debt (including mortgages and personal loan credit ) and any other committment you have make ( for example have a house in spain with your partner when you are 50 )

    for Critical illness is to cover in case of seriously ill you may required large sum of money for medical or private hospital or for medicine or for carer .
    and also for the time being you are out of work and no employer is going to paid you when you not working for them , so you family needed money to survive if they are depend on your income.

    finally for Payment protection is to prevent when you can't make your payment .

    :T
    No Spend Required ! If I "Thanks" you Please "Thanks" me back ! Many "Thanks" !
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Dont forget PHI which can be better value than CI and ASU. Especially for the self employed or contract workers.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • waynewayne Forumite
    317 Posts
    thanks both for that
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