Level Term Life Insurance Guide Discussion

kate2805

hi there, not sure if anyone can help

12 years ago my then boyfriend and I both took out separate decreasing life assurance as we purchased a house under a joint mortgage. No named beneficiary on the policy. We then got married, then divorced and since then I have continued to pay the premiums for this.

Having a tidy up I found the policy and was reading it through.

If he were to die now would I be the person to benefit from the policy as it were taken out to cover our joint mortgage should he die (I solely own the house now) and I have been paying the premiums since we divorced in 2007.

many thanks in advance.

kingstreet

If the cover was taken on a sole "own life, own benefit" basis, the money would go into the estate of the deceased and be distributed according to the will, or intestacy rules if no will was left.

Chances are, you would only get the proceeds if the policy was joint life first death, in trust with you as beneficiary or written on a "life of another" basis with you as the assured and him as the life assured.

Jase_from_Up_North

Recently got life insurance and changed my mortgage with an IFA have to say that using the IFA for us was the best thing we did.

Mrs_ted

Ok I have read a few comments and slightly confused.
We recently bought a house. I want life insurance that If one of us dies the mortgage is paid off, or if 2 of us die the mortgage is paid off. So then my daughter gets the house with no monies owed on it. Horray!

Its that simple or perhaps not. Any thoughts?

:money:

actd

I'm sure the experts on here will advise more fully, but joint life should do it - pays out when either of you die, but only pays out once if you both die together which is what you need to cover the mortgage.

Kaybenson

Hi Folks,

Mr K is in the process of getting a life insurance. He is 41, Neither smoke NOR Drink. Have raised high blood pressure. He has no mortgage but planning to have one soon.
1) While applying for the insurance, he mistakenly gave a wrong height which is NOW corrected.
2) A consent letter was sent to allow them access to medical history. It had since been signed. Doctor is currently on holiday so there is no way she could have provided the medical report.
3) The company gave a quote of £17.91 per month for a cover of £113,954 on 20 years policy or £33.25 for 39 years.

4) It came with NO guaranteed Insurability option

Is this the best Mr K can get in the market?

In this situation, what are the best suggestion for Mr K to go with?

Cheers

kingstreet

If that's only the initial quote, you need to wait for the acceptance terms after the medical underwriting is completed and the life office has decided what to offer.

Kaybenson

kingstreet wrote: »

If that's only the initial quote, you need to wait for the acceptance terms after the medical underwriting is completed and the life office has decided what to offer.

Is that not the final quote? There is already added premium because of raised BP.

According to them, the only thing remaining was for me to sign the form and tell them the day the cover will start.

2) Again, i read somewhere about not travelling out of UK for more than 12 weeks. How possible?

Cheers

kingstreet

It's not clear from your post if medical information was requested from his GP, no request was made, or if information was requested and sent back.

The normal process for a life proposal is;-

- quotation (assumes normal rates apply)
- proposal (signed AMRA declaration taken)
- medical information requested (from applicant/GP/medical examiner)
- acceptance terms issued (confirming premium, exclusions, endorsements)
- policy put in force (cover starts and premium payments confirmed.

We really need to know what stages have passed and what happened at each. Do you have formal acceptance terms?

Kaybenson

kingstreet wrote: »

It's not clear from your post if medical information was requested from his GP, no request was made, or if information was requested and sent back.

The normal process for a life proposal is;-

- quotation (assumes normal rates apply)
- proposal (signed AMRA declaration taken)
- medical information requested (from applicant/GP/medical examiner)
- acceptance terms issued (confirming premium, exclusions, endorsements)
- policy put in force (cover starts and premium payments confirmed.

We really need to know what stages have passed and what happened at each. Do you have formal acceptance terms?

Thanks Kingstreet.
1) Mr K has gotten a letter titled '' Our Underwritten Decision '', It reads We can offer Mr K cover with an additional premium applied. Pls note that guaranteed insurability options is NOT available when an additional premium is applied. Then they state the new premium to be paid.

2) Two weeks after, a letter also came stating ''We've assessed your application and its ready to begin......Please return the Form of acceptance and policy start date ....

Cheers