Level Term Life Insurance Guide Discussion

kingstreet

Meet the need using the term which matches it.

If you have a child, use the child's 21st or 25th birthday as the termination point.

If you have a non-working spouse, use your retirement age.

TBH I don't see anyone having a need for that level of cover beyond retirement.

For family protection, you may find it cheaper to use a Family Income Benefit product instead. This pays an annual income from the point of death until the contract expires and this meets the need more cost-effectively than a lump sum which is the same from the first day to the last day of the life of the cover.

Single cover should be written in trust so it remains out of your estate for inheritance tax purposes, is paid quickly as there's no need for probate and (with some trusts) you can alter beneficiaries later if you have more children or split from your current partner.

storick99

Firstly thanks to all member for sharing their thoughts about life insurance,really it is very necessary to know how much important your life for your children after you. Because there is no guarantee that what will happen next day.

creationuk

hi kingstreet, thanks your reply.

family income benefit sounds like a good product. Does it sort of pay an annuity, similar to a pension, but only pays on death?

I think if we go for the level term cover, it will be 60 years. I have found cheap cover for both of us at 60 years for 250k - £35 both of us.

The policy is with ageas, have you heard of them?

thanks again.

Nat68

Hi, Im new to this ..... Is there anyone out there who know where to go to get Life Insurance when you have a medical condition?
Thanks for your help.

dunstonh

Nat68 wrote: »

Hi, Im new to this ..... Is there anyone out there who know where to go to get Life Insurance when you have a medical condition?
Thanks for your help.

Any local IFA. https://www.unbiased.co.uk is the main database covering the UK

yourlife

Nat68 wrote: »

Hi, Im new to this ..... Is there anyone out there who know where to go to get Life Insurance when you have a medical condition?
Thanks for your help.

I hope this could help you. Try buyingtermlife.com they offer fast online Term Life Insurance rate quote, or an affordable Universal life insurance.

rs65

yourlife wrote: »

I hope this could help you.

Not if you live in the UK.

Spam off !

SHEILA54

Hi

I am 62 and in good health overall. When revising my will yesterday it was suggested that I take out level term insurance to cover the inheritance tax shortfall on my property and have it written into trust.

Obviously if I die at the end of the period I would be paying more in premiums than the amount covered.

Also I could look into whole of life cover, to be sure.

I was looking at 70000 over 25 years and Cavendish have come up with around £50 per month.

Thanks

dunstonh

I am 62 and in good health overall. When revising my will yesterday it was suggested that I take out level term insurance to cover the inheritance tax shortfall on my property and have it written into trust.

Why level term assurance and not decreasing term assurance?

Also I could look into whole of life cover, to be sure.

Do you need to have that?

missrlr

I can I check I have something straight in my head please?

When I was single and took out my mortgage I also took out a level term policy to cover the mortgage plus a bit for other expenses / outstanding bills on credit cards / probate bills and so on. Thought being leave no debt and the house to niece. pays out on death / you will die in 12 months

I also took out ASU inc critical illness maximum I could afford at the time to cover mortgage plus bills. Pays out for 12 months with 4 week wait.

Am now married and there will be no kids - husband has his mortgage with cover for that term, he gets generous sickness pay and DIS plus generous pension from his work I am both employed and self employed so get nothing along these lines. My house is now rented - hence self employed for tax reasons. My employer is a very SME - no benefits with this job.

I am thinking that as my income as increased and so have my outgoings and hubby would be inconvenienced if I were to be unable to contribute to the household bills so I need to review the type / level of protection I have.

Therefore I have investigated / read up on and concluded the following:
As married house will be left to hubby (niece in event we both go) so no need to change the level term bit on there. Mortgage covered, plus as house rented this can be either continued to provide an income OR sold to create capital to live on.

The bit which is causing me a headache is the following:
1. I am dead, mortgage is paid off hubby has income / capital from house so his position is bettered, he can more than cope with bills etc on his income in this case therefore no need for any further insurance / assurance products
2. I am not dead but not able to work due to ill health, house therefore needs to be paid plus all other bills and may be some then income needed - IS THIS AN INCOME PROTECTION POLICY OR AN ASU?
3. I am made unemployed and I can't get a job for a period of time and we still have all the current bills plus worst case scenario the rented place has a tenancy void / some idiot tenant who we can't get out and trashes the place (been there done that) therefore we need income to the level we currently have. Do not get me wrong we (I) have some savings for this eventuality and there are some drastic action steps we have pre-agreed on to cut back / reduce but eggs is eggs, income is needed - IS THIS COVERED BY AN INCOME PROTECTION POLICY IS FOR OR IS THIS COVERED BY AN (accident, sickness and unemployment) ASU?
3. Assuming answer to 3 above is ASU is it possible to get a policy that pays out for more than 12 months as the ones I have seen are all max 12 month payout.
4. what is the maximum income per month you can insure under an income protection plan? It is linked to how much you currently earn?
5. I have had a quote for £1400 pcm 4 week deferral period income protection, term to retirement (29 years) 8 week deferral for unemployment, max pay out on unemployment is 12 months @ a monthly premium of £161.74 - if I try to replicate this online using the likes of Cavendish and MoneyWorld then it seems a lot cheaper, how can I make sure I am not comparing apples and pears?