Level Term Life Insurance Guide Discussion

yaweh

Thanks for the advise Kingstreet,the insurance is for a repayment mortgage and it does run along the same term.Just trying to find out what would be best for myself and the children,reading the forums alot of posts say critical illness insurance ect is not worth having and i would be better with some other insurance.Thanks again Kingstreet:T

dunstonh

alot of posts say critical illness insurance ect is not worth having

I have read this forum frequently for nearly a decade and have not seen a lot of posts saying CI is not worth having. It certainly isnt top priority in the pecking order (and there are many posts explaining that) but it's claims ratio and stats are good enough to make it viable. Indeed, for many groups of people they are statistically more likely to have a claim on a CI policy then they are a life assurance policy.

yaweh

Thanks for the advice Dunstonh,i read it on the main page which says that they are not big fans of critical illness cover.Insurance is so complicated that i just want to get some idea of which cover would be best for me,i have death in service at work which is £60,000 so i am just looking for the best cover for my needs,thanks again for the reply:j

kingstreet

You sum up the whole issue in your last sentence.

We can't tell you how to prioritise your needs. I'd routinely ask you questions to establish your needs. Then we'd work out between us which needs were priorities, which could be partially met and which could be met later. Finally, we'd set a budget to establish what you felt would be affordable to address the priorities in order of importance to you.

As I mentioned earlier, writing life cover in trust is very important, as much as the choice of provider and the cost, in my opinion.

I strongly suggest you seek independent advice to establish the correct path for your needs.

dunstonh

i read it on the main page which says that they are not big fans of critical illness cover.

It is one of Martin's most disgraceful articles and frequently criticised. I am not even sure Martin wrote that article as it is written by someone with low knowledge and understanding. It is more akin to a Daily Mail article.

Blue_Bird

Hello,

I haven't been on the site much since joining but am trying to get my financial life in order!

I've always shopped around for car insurance but I've left life insurance to run since I got my mortgage seven years ago - it's now costing me £18 per month (provided by Synpro) yet I've just been on a well known price comparison site which suggests that I could get cover for as little as £5 per month with well known companies such as LV!

I have no debts or dependants, but I have a repayment mortgage for £89k which has 23 years left to run and in the event of my death I would like this to be paid off. I am in HM Forces, if this makes a difference.

Is it better to go to an IFA? Or is it really as simple as buying car insurance? I have been trying to read up on Level Terms and Assurance and all the rest of it but I'm thoroughly confused and my renewal is approaching fast! Thank you in advance to anyone with any advice!

BB x

ACG

You can buy life insurance for £5 - but the amount you get probably wont be a lot.

HM forces may make a difference - depends on whether or not you are under orders or not.
It is easy to buy but there are things you need to be aware of - Waiver of premium, guaranteed or reviewable rates, trusts etc.

Entirely up to you if you go online or via a broker - just read up on it if you do it alone...especially trusts.

Staffielover

Has anyone experience with this firm? Your feedback would be great.

himkool

Hi
My current situation:

• Male early 40s, non smoker, under medication to control high blood pressure
• Married with 2 children under the age of 5, house with mortgage
• Technology freelancer with no Life or mortgage assurance, no Income protection or critical illness cover
• Wife works and has death in benfit and critical illness cover through her employer

A high street bank adviser suggested the following:

1. Decreasing term assurance for the length of the mortgage which pays out on death
2. Critical illness cover which pays a lump sum
3. Income protection plan which pays a monthly sum

Queries:

1. I am not sure if all three are needed? If crical illness will payout a lumpsum, do I additionally need income protection or vice versa?
2. Additionally the premium he quoted for Aviva products seem quite high when compared to the online quotes. Is this because the policies may be different or is it because it inlucdes his commissions etc?

I would appreciate any pointers to the above questions.


Thanks.

stephenni1971

himkool wrote: »

Hi
My current situation:

• Male early 40s, non smoker, under medication to control high blood pressure
• Married with 2 children under the age of 5, house with mortgage
• Technology freelancer with no Life or mortgage assurance, no Income protection or critical illness cover
• Wife works and has death in benfit and critical illness cover through her employer

A high street bank adviser suggested the following:

1. Decreasing term assurance for the length of the mortgage which pays out on death
2. Critical illness cover which pays a lump sum
3. Income protection plan which pays a monthly sum

Queries:

1. I am not sure if all three are needed? If crical illness will payout a lumpsum, do I additionally need income protection or vice versa?
2. Additionally the premium he quoted for Aviva products seem quite high when compared to the online quotes. Is this because the policies may be different or is it because it inlucdes his commissions etc?

I would appreciate any pointers to the above questions.


Thanks.

First off - banks are a terrible place to get insurance, limited choices, high prices and 'advisers' with little training who are effectively just there to sell.

THe quote you have will be based on you fitting normal health criteria - so with your blood pressure be prepared for the final price to be different. Problem is every company treats it differently so you find that a company who were originally more expensive can come out cheaper taking medical info into account.

Problem is your bank will likely be tied to one insurer so they cant shop around.

Aviva Critical Illness cover is cheaper than most for a reason - covers fewest conditions and I have never yet recommended it to a client better IMHO to pay 5% more and get a superior policy.

As you are freelance I reckon IP would be more appropriate than CIC if you are on a budget. CIC pays a lump sum on diagnosis of a condition covered and thats it. IP pays out a yearly sum for the length of the policy.

SO say you have a heart attack and cannot work again

CIC would pay 1 lump sum then no more

IP would pay as long as you took the policy for ( most would take it to retirement age )

Rather than trying to flog you something you need to chat with an adviser who will actually listen to what you want and take that into account when advising on suitable products. Also its then possible to find the provider who will offer best terms for your HBP.