Level Term Life Insurance Guide Discussion

snacksalot

Hi there, was just wondering if anyone could give me some advice please. Im a 30 year old man with a wife and 1 child and want to get some life insurance. I would like to know how much insurance cover I need, how long the term should be, if i need critical illness cover, etc.

I know that this all depends on my circumstances and I have made some estimates and got some quotes. Its just that I have no idea of whether am getting a good deal, if I really need that much cover, for that period of time etc.

So I guess, what I am really asking is, is it advisable to get cover with my best estimates of what I think is right for me? Or do I need to seek professional help? And if so, who are the best people to speak to (on a budget)?

Any help would be much appreciated.

dunstonh

Hi there, was just wondering if anyone could give me some advice please.

The board is not allowed to give advice. Just discussion and comment.

. I would like to know how much insurance cover I need, how long the term should be, if i need critical illness cover, etc.

Impossible to say without an analysis of your financial situation.

Its just that I have no idea of whether am getting a good deal, if I really need that much cover, for that period of time etc.

You cover the need and timescales. You will probably have multiple needs/timescales so you take out a plan or segment to cover each of those. Rarely is one plan/segment the best option.

So I guess, what I am really asking is, is it advisable to get cover with my best estimates of what I think is right for me? Or do I need to seek professional help? And if so, who are the best people to speak to (on a budget)?

If you cannot DIY then you should use an IFA. Not an FA or sales rep.

kingstreet

snacksalot wrote: »

Hi there, was just wondering if anyone could give me some advice please. Im a 30 year old man with a wife and 1 child and want to get some life insurance. I would like to know how much insurance cover I need, how long the term should be, if i need critical illness cover, etc.

I know that this all depends on my circumstances and I have made some estimates and got some quotes. Its just that I have no idea of whether am getting a good deal, if I really need that much cover, for that period of time etc.

So I guess, what I am really asking is, is it advisable to get cover with my best estimates of what I think is right for me? Or do I need to seek professional help? And if so, who are the best people to speak to (on a budget)?

Any help would be much appreciated.

I wrote this for another thread the other day;-

You are better off thinking in terms of what you need if things go wrong. Establish your needs, then prioritise them. Set a budget for meeting those needs and move on to addressing them by looking at the products.

What happens if I can't work due to accident or sickness? How long would my employer continue to pay me? How would I pay the bills after that?

How would I pay the mortgage and the bills if I lost my job?

What would happen to my loved ones if I die? How would they pay the mortgage and the other household expenses?

What happens if I get a serious illness but don't die? How do I pay the bills and the mortgage? What happens if I need to adapt my home or take extended convalescence?

The answers to the above will make you think about how you feel about these needs. You'll prioritise them based on how frightened you are of them and their impact on you and/or your family.

Once you've done that, you're half way to building a protection plan. The next job is to establish the value of these needs and their duration.

Should the cover run until the end of your mortgage? Until you retire? Until a child reaches 18, 21, 25? How much income would be lost in the event of these needs? Should a need be met by a lump sum, or an income?

Eventually, you'll have a framework on which to build. Once you have that, selecting the products is the easy bit. An IFA will help you establish the best/cheapest providers and help you write cover in trust where necessary.

Hopefully, you can work out the needs and the length the need will last. An IFA will then help you quantify each need and draw up a protection plan which meets them and your budget.

SHEILA54

Hi

Well I have looked at whole of life insurance against term level insurance and the different in cost is amazing. £70, 000 whole life cover, at 62 years, is £130 whereas 30 years level term is under £60. Will I live beyond 92, who knows.

I believe that a term life policy can also be written into trust?

Please can anyone recommend or suggest companies to avoid?

Many thanks for all of your help

kingstreet

Which companies are prepared to offer term assurance to 92?

SHEILA54

Aegon Scottish Equitable - via Cavendish / Moneyworld recommended here

Ageas will do 25 years

This is without any medical problems and as a non smoker. Please can you tell me which medical problems I should worry about as I had back surgery 12 years ago, have a hiatus hernia but my BP is ok, not diabetic, no heart problems

Thanks

kingstreet

Interesting. I can't get a quote from Aegon for thirty years for a sixty-two year old. The narrative is "Age + Term exceeds maximum expiry age."

Dunston might be able to shed some light on this when he's around.

SHEILA54

I got this quote from both from Cavendish and Moneyworld but haven't tried to follow through.

Thanks for your help.

By the way are the companies mentioned reliable?

kingstreet

The brokers or Aegon?

Aegon are ok.

Just remember you have to set up the trust, as you won't get "advice" from the brokers you mention.

kingstreet

As a matter of interest, what happens if you don't die before you reach 92?

The medical problems don't sound life threatening, but at 62 you're likely to be subject to a GP's report, possibly even a medical examination at the sum assured you need. They will carefully look at your medical history, together with the answers you give to the questions on the application.