Level Term Life Insurance Guide Discussion

kingstreet

No. They are valid if the expiry date has not yet been reached and you are still paying the premiums.

As it may be more difficult to get cover at standard rates on a new plan, check if there are any guaranteed insurability options on your current plans and ensure if you do apply elsewhere, you don't cancel the current plans until the new one is accepted and in-force.

OshayAway

As long as the disclosures were correct at the time of application, it's valid.

The only change in circumstances that can affect the validity of an existing plan is residency outside the UK.

HeimRoller

I thought I had my future planned, but now am getting confused!
When I took out my, interest only, mortgage I took out a life assurance policy too for same amount and period. We had to re-mortgage a few years back so I again upped my assurance. My wife did not take out a policy (long story) but is now trying to do so. She has just got some quotes for life insurance at a fraction of the cost mine is (touch wood I am in good health). However she has confused me, she wants a policy that continues past the mortgage so that we provide for our children. Given teh quotes she has received I am considering cancelling my policies and getting a new life insurance policy. My quotes for this are a lot less than I am currently paying. What am I missing?

kingstreet

Is there something included in your cover, but not in hers?

Critical illness cover, or income protection?

How do the lengths of the two policies compare? Your ages? Smoker status? Health?

How did you buy your cover? Banks tend to be more expensive than brokers and online comparison sites.

Do not forget to write your cover in trust!

HeimRoller

kingstreet wrote: »

Is there something included in your cover, but not in hers?

Critical illness cover, or income protection?

How do the lengths of the two policies compare? Your ages? Smoker status? Health?

How did you buy your cover? Banks tend to be more expensive than brokers and online comparison sites.

Do not forget to write your cover in trust!

We had the same cover from what I can see. I am 48 she is 42, although I would have been around 40 when I took mine out. Neither are smokers. I was good health at the time, she has a back problem.
In fairness mine was bought via the building society whereas she looked at comparison sites.

Thanks for the trust reminder.

littlejaffa

Asking this on behalf of - 66yr old V unhealthy woman - smoker, registered disabled (not life threatening) sole home-owner (with a mortage paid on interest only), looking for a £55k ish policy ...Are there specific do/don'ts associated with the age/disability aspect. And any specific companies that you'd recommend?

The level term policies will only cover to 80 which isn't much use - and seem freakishly expensive around £200 for the cover.

stephenni1971

littlejaffa wrote: »

Asking this on behalf of - 66yr old V unhealthy woman - smoker, registered disabled (not life threatening) sole home-owner (with a mortage paid on interest only), looking for a £55k ish policy ...Are there specific do/don'ts associated with the age/disability aspect. And any specific companies that you'd recommend?

The level term policies will only cover to 80 which isn't much use - and seem freakishly expensive around £200 for the cover.

I don't understand how you think life insurance for an unhealthy 66 year old smoker should be cheap!

Normal term insurance will always have a maximum age limit - whole of life is what you are looking for but as the payout is a certainty again premiums will not be cheap.

Perhaps using the £200pm to start paying down the mortgage may be an option?

di3004

Not up on these type of policies, but is there a certain age to add children to the "trust" of an insurance policy? one that is to last until retirement age for eg, level cover assurance?

Thank you.

weighty1_2

di3004 wrote: »

Not up on these type of policies, but is there a certain age to add children to the "trust" of an insurance policy? one that is to last until retirement age for eg, level cover assurance?

Thank you.

Do you mean add children as potential beneficiaries of a trust?

If yes, then the most commonly used life insurance trust is a flexible/discretionary trust whereby the trustees can automatically select certain people to benefit from the trust money. One category is always the settlors children.

If you wish to ensure specific amounts to be left to certain people then it may be worthwhile writing a "letter of wishes" as this provides direction to the trustees as to exactly who you wish to benefit from the proceeds. Bear in mind though, the beneficiaries of a flexible/discretionary trust are not set in stone and it is ultimately down the to trustees discretion, even if you write a letter of wishes.

If you want to absolutely guarantee certain people benefit from the plan then a bare/absolute trust may be more appropriate.

As always, the guidance of an IFA, protection specialist or solicitor may be worthwhile.

di3004

weighty1 wrote: »

Do you mean add children as potential beneficiaries of a trust?

If yes, then the most commonly used life insurance trust is a flexible/discretionary trust whereby the trustees can automatically select certain people to benefit from the trust money. One category is always the settlors children.

If you wish to ensure specific amounts to be left to certain people then it may be worthwhile writing a "letter of wishes" as this provides direction to the trustees as to exactly who you wish to benefit from the proceeds. Bear in mind though, the beneficiaries of a flexible/discretionary trust are not set in stone and it is ultimately down the to trustees discretion, even if you write a letter of wishes.

If you want to absolutely guarantee certain people benefit from the plan then a bare/absolute trust may be more appropriate.

As always, the guidance of an IFA, protection specialist or solicitor may be worthwhile.

Thank you, and yes I did mean as part of potential beneficiaries of trust.
Just wasnt sure if they had to be a certain age, if you wanted to add them onto the flexible trust. As I note it is suggested to add at least 2 people you know or trust etc....

Thank you for the information.