Help with Life insurance

christophe09

Ok. I have just got a mortgage so mortgage life insurance is more suited? Does that mean the amount i pay for the insurance will be reduced over time? So whats level term? is that the same as life insurance. where my premium will stay the same no matter how much is left on the mortgage.

sorry t sound stupid i'm new to all this

dunstonh

Ok. I have just got a mortgage so mortgage life insurance is more suited?

if its a repayment mortgage, yes.

Does that mean the amount i pay for the insurance will be reduced over time?

Only if you get a yearly renewable term assurance and are young enough for later premiums and the reduced sum assured to lower the price. If you get a standard decreasing term assurance then it will remain the same over the term (unless you get reviewable premiums and not guaranteed).

So whats level term? is that the same as life insurance. where my premium will stay the same no matter how much is left on the mortgage.

Level term assurance is life assurance. It is where the sum assured is set at the outset and doesnt increase/decrease. If you go for guaranteed premiums then the premium will remain the same over the term. Reviewable or yearly renewable are subject to change.

benjaminM

christophe09 wrote: »

Ok. I have just got a mortgage so mortgage life insurance is more suited? Does that mean the amount i pay for the insurance will be reduced over time? So whats level term? is that the same as life insurance. where my premium will stay the same no matter how much is left on the mortgage.

sorry t sound stupid i'm new to all this

Hi Christophe, decreasing life insurance is designed to pay off a repayment mortgage and decreases as your mortgage decreases. Decreasing is the cheapest form of life insurance. Level Life insurance is a fixed guaranteed sum that, as you have quite rightly said, will stay the same right through the term of the policy.

Life insurance for you and your partner providing you are in good health and dont smoke, should be relavtively cheap. You should be able to get Level cover for a reasonable price considering your ages. I think it would be a good idea for you to get a quote for both decreasing and level term so you can see the difference in cost. At a guess I would think you could probably get £200k level term for the two of you for no more than £15 a month. Decreasing for the same amount would be around £10 a month. The figures are pure estimates and as i dont know your circumstances or how much cover you need just use them as a guideline.

Critical illness is a lot more expensive than life, you would pay same the amount of premium as I have suggested above for less than half the cover. Critical illness is good cover to have if you can afford it. It will pay out a lump sum in the event you are diagnosed with a critical illness.

I think you need to think of a realistic budget you can both afford. Then contact a provider or an IFA who can put together a package based around that figure. There are loads of good companies about who can help you. Royal Liver, LV, AXA, Aviva, Bright Grey to name but a few all have good policies and can be purchased direct from the insurer or from an IFA.

christophe09

i see. well i am happy to pay up to £32 month. The less the better obviously. Will look into the difference in prices for level term and decreasing. Thanks

lawson0573

I wasn't actually touting for business- I was merely offering my help with regards to what the companies offer- and merely stating that I was independent so unbiased!

lawson0573

PS- relatively new on here- how do I put on here that I am adviser etc- not looking for business- just to offer help in a confusing market place?

lawson0573

Let's try- think I have done it...