Level Term Life Insurance Guide Discussion

dunstonh

ould it then be wise to have level term insurance until retirement age, or is that unnecessary?

For "family" protection -in your case income replacement, it would be worth having that part of your life assurance go to retirement. For the mortgage part of your life assurance, you go for the length of the mortgage.

dan1981stu

Hi angeld,

Like you I didn’t know where to start with Life Insurance and found this and other finance forums very helpful. I ended up using a broker which I found on a forum who was very helpful. He walked me through the various options and helped me choose a policy that was right for me. If your interested his website is adviserfinancial-lifeassurance.co.uk/life_insurance.php. Got me a good price also and think he has put me on the site as a testimonial - please don't laugh at the photo though!

Kara

dan1981stu

Hi angeld,

Like you I didn’t know where to start with Life Insurance and found this and other finance forums very helpful. I ended up using a broker which I found on a forum who was very helpful. He walked me through the various options and helped me choose a policy that was right for me. If your interested his website is adviserfinancial-lifeassurance.co.uk/life_insurance.php. Got me a good price also and think he has put me on the site as a testimonial - please don't laugh at the photo though!

Kara

Lifes_Grand_Plan

dan1981stu wrote: »

he has put me on the site as a testimonial - please don't laugh at the photo though!

Hey good lookin'

Baking_Mad

Our case is not a textbook one.

We are a married couple with 2 childred under the age of 8
My husband is quite a lot older than me and is in his early 50s
We used to be homeowners but not any more (presently private renting) and are unlikely to buy again at least in the next few years. Even when we get to the stage of buying our next property it'll be a small place with the max price £100000

Our present level of cover is following

£50000 level term assurance to OHs age 65 (only covers him)
£26400 death and critical illness cover till 2017 for both
£123600 death and critical illness cover till 2022 for both
£135000 level term assurance till Sept 2024 for both

We currently pay almost £143 pm for all of the above and wondering whether in the current difficult financial climate we could put some of this money to better use particularly because we don't even have a mortgage! However, we do realise that cancelling and rearranging in the future is not an option for us due to my husbands age.

Also one of the policies includes waiver of premium benefit, can someone explain what this is please.

Wutang_2

alionaear wrote: »

Also one of the policies includes waiver of premium benefit, can someone explain what this is please.

What did the insurer say when you asked them?

Baking_Mad

sorry, don't understand what you mean. all I know is that one of the policies states that the waiver of premium benefit is included. I don't even know what waiver of premium is and haven't spoken to the insurer regarding this or any other matter.

starrystarry

Waiver of premium benefit = the insurer will waive the premium on the policy if you're unable to work due to illness or injury, after a waiting period (deferred period), typically 4, 8, 13, 26 or 52 weeks.

Baking_Mad

Bringing this thread back up, still looking for opinions regarding my earlier post.

jnm21

alionaear, I am a complete novice (on here looking advice myself). I believe the following are facts; before advising, anyone would need a breakdown of the monthly cost (i.e. for each policy). Also, do either of you have medical conditions (I would suggest possibly giving an assessment of high/medium/low/none for each, as I'm sure you don't want to post details) - advice given can only be as accurate as the facts given & the fullness of them.

I am fairly intelligent, quick on the uptake, etc., but I am struggling to get to grips with a much simpler situation (which leads nicely in) - I would suggest you may be best to take all policies with you to see an IFA.

My situation is somewhat simpler; small mortgage, wife semi-dependant (could maybe get by, but would be greatly inconvenienced), I would say I would get by also with a reduced quality of life, no other dependants.

My thinking until looking here (I read all 140 posts tonight) was small joint term life policy to pay off all debits (inc. mortgage & bank of mum & dad - most important, not least as I can think of little worse than a parent burying a child, especially their only one). I thought my biggest decision was term (1-50 year), but I now wonder if IP should be at the same importance.

I have a few questions (apologies if a few have already been answered - I have read all the posts & know some were touched on); if we (both under 35) apply for a term life policy, how many health questions will be asked? Is acceptance automatic? Does the length influence this? I think an early post suggested 5 years would be the limit of automatic acceptance (if I read & remember it correctly). Would a price difference under 50% be worth it to lock in a 25 year security?

Sorry to keep firing questions, but I seem to have amassed more questions than answers; is 5% per annum income on a lump sum realistic & what risk level would one need to take with the investment? The best quotes I have got online appear to be L&G - has anyone any opinion or evidence on whether they are better or worse to deal with? Would the average policy cease if we moved to Spain or Australia?

One final question (for now) - would the average insurance company trust allow much imagination? Thinking along the lines of to the remaining policy holder, then (in the event that neither policy holder survives) 40% to X, 35% to Y & 25% to Z. What would happen if X was also no longer with us & can this be further detailed?

OMG - all these questions & I haven't even looked at CIC or IP... please help! I do hope that many of these questions will ease those tasks!