life insurance help please!

mummyofboys

Hi,

I was wondering if somebody could help me. Im 22 and my boyfriend is 23, we have a 3 year old son together, and another boy on the way. My boyfriend works and i do, we rent privatly and dont have a mortgage - this doesnt look to change for along time, as we are happy renting and paying off debts together.

I really am struggling with understanding life insurance, I have asked my dad to help me but he never seems to have time, or always says we will do it in a few weeks ect and never gets round to helping or advising me!

I would like to put a policy in place so that If i were to die, my sons and my fiance would be ok money wise, and so they could pay off debts ( around 9k) put down some money on a house ect , and so he could look after the children. I am thinking of the 200k figure? would this be too much or about right?

I am also wanting to be covered if we both die , so that money is there for my sons, to get a house or go to uni whatever they want to do. If we were both to die before they turned 18, would they not be able to access the money untill then? or do i appoint somebody to look after this money and provide for them?

Also i have seen on the quotes, how long i want the inssurance to run for , 5 years 10 years ect. What is the difference? if i select 5 years does this mean i am contracted to pay this for 5 years? and what happens when the five years is up?

I also want to be covered incase any of use get critically ill, myself, my sons or my fiance as i would hate for this to happen and then have money worries on top of this.

can you also explain what would happen after a payout? would the payments stop ect?

Thanks very much on any help offered, sorry it sounds so confusing and im rambling. Just really want peace of mind and to set this up for my family,

Thanks Jay

Mips

If I were you , I would contact a financial advisor in your local area for a free of charge consultation

They can go through all of the policies with you and decide which is most suited for your family, and your budget.

That's what they are there for.

Savvy_Sue

Have you read the article on life insurance on the main site?

neneromanova

I think we're going to go with Virgin Life Insurance. You can tell them how much you want to pay a month and for how long. I chose £15 a month and it came out at £269k or something like that. And that was for 5 years. Plus on Quidco, they are offering £50 cash back.

chris_cooper

Go and see an independant financial advisor or even an independant mortgage broker first - they shouldn't charge and you'll actually get a product that is right for you, not just the most amount of insurance for a given cost. With a young child and another on the way you need proper advice. What happens if you die in 6 years for example and you've taken a 5 year policy? No life insurance and 2 (still young) kids with nothing? Worse still, both you and your partner die, leaving nothing - who raises your kids and how do they pay for it etc etc?
You can also look at income protection rather than critical illness, get the broker to explain it, it's their job, and it may be more suitable for you.
I'm not recommending any particular products before anyone says anything - the only advice I'm offering is to seek free professional advice rather than trying to guess!

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

dunstonh

neneromanova wrote: »

I think we're going to go with Virgin Life Insurance. You can tell them how much you want to pay a month and for how long. I chose £15 a month and it came out at £269k or something like that. And that was for 5 years. Plus on Quidco, they are offering £50 cash back.

Unlikely to be near the best price and some of the plans have reviewable premiums rather than guaranteed. I dont know if they have guaranteed insurability or not but if they dont, I would go for one that does.

Wutang_2

neneromanova wrote: »

I think we're going to go with Virgin Life Insurance. You can tell them how much you want to pay a month and for how long. I chose £15 a month and it came out at £269k or something like that. And that was for 5 years. Plus on Quidco, they are offering £50 cash back.

I would ignore this - cashback + cheapo is no where near as good as an advice driven regulated policy. An IFA would ensure you have FSA protection if ever there were a problemo.