advice on life insurance

reisse03

hi there, i used to have life insurance but cancelled after my divorce.

im just looking for advice on this. i am single with one son and would like life insurance with critical illness cover.
i rent a flat and work full time, i have been quoted around £10 a month for this cover for 25 years with £40k illness cover.
is this something i should consider?

dunstonh

i have been quoted around £10 a month for this cover for 25 years with £40k illness cover.

Is that with terminal illness or critical illness cover?
Guaranteed or reviewable premiums or yearly renewable premiums?
level term, decreasing term or family income benefit?

Does your financial need last for 25 years or would a shorter term but higher amount be better? (as £40k wont go far).

reisse03

dunstonh wrote: »

Is that with terminal illness or critical illness cover?
Guaranteed or reviewable premiums or yearly renewable premiums?
level term, decreasing term or family income benefit?

Does your financial need last for 25 years or would a shorter term but higher amount be better? (as £40k wont go far).

its critical illness, guaranteed premiums, and level term. i dont know much about these things, to be honest, do you think a shorter term would be better?

dunstonh

do you think a shorter term would be better?

The term should match the financial need. For the benefit of children, you would typically you would look to around age 23 as the period of need. Thats just a guide age.

40k isnt much. If used to provide an income, it would provide £2,000 a year. That isnt really going to help much. Although the value of your pensions would be available either as lump sum or dependants pension depending on the scheme. So, there may be some more.

ACG

I think you need to think about what you want/expect from this life policy.

£40k isnt a small amount, it would pay for a funeral and give your son a nice lump sum. However for CIC £40k isnt a lot. Presume your unable to work then CIC would need to help support you on top of what you would get from the government. It sounds like a nice figure but it has to last until the day you die should it pay out.

Also dont forget if you do get life and CIC put it in benefits reserved trust. This ensures your son should get his money if you die, however if you get a Critical illness then it means you get the money instead should it pay out. But if your dealing with a Financial advisor then im sure he will probably be looking into this anyway.