Level Term Life Insurance Guide Discussion

iancmitch

Hi

I may be looking for a product that does not exist.

If I pay into say a 20 year life insurance and I dont need the payout, if there a policy out there were I get some, all of the money back? I am guessing I am looking for a type of savings policy that also cover you for death

Thanks

dunstonh

If I pay into say a 20 year life insurance and I dont need the payout, if there a policy out there were I get some, all of the money back?

There used to be but the last mainstream provider stopped retailing it in 2003. They were known as endowment policies. However, they became obsolete as stocks & shares ISAs were more tax efficient and having an S&S ISA with a decreasing term assurance could more or less fit the goal but be tax free rather than suffer 20% internal taxation.

Chappers04

In the process of buying a flat for £135k.
Getting a mortgage solely in my name for £114,750 over 30 years.
I'm a 27 year old fencing coach (occupation might be an issue with regard to total and permanent disability cover with some insurers), with no children, but a partner that has an annual income of only £10k with whom I'm living with.

Not really sure what type of insurance, if at all, would be suitable for my circumstances and would like to hear some opinions from the wise forumites!

Many thanks in advance.

Murts

Chappers04 wrote: »

In the process of buying a flat for £135k.
Getting a mortgage solely in my name for £114,750 over 30 years.
I'm a 27 year old fencing coach (occupation might be an issue with regard to total and permanent disability cover with some insurers), with no children, but a partner that has an annual income of only £10k with whom I'm living with.

Not really sure what type of insurance, if at all, would be suitable for my circumstances and would like to hear some opinions from the wise forumites!

Many thanks in advance.

There is of course an answer here to cover everything in case the worse happens but it is probably best to review the 'full' cover and work out what is affordable and sensible for yourself.


Normally the first thing covered (although not always the best) is a decreasing/mortgage term assurance (This is based on the assumption that you have an repayment mortgage.)


Then look to include critical illness - Most of these polices will include the life insurance at no additional cost. Do not get this confused with terminal illness which nearly all life polices automatically include. If this works out too expensive perhaps think about covering a year or twos salary instead. ie that safety net is better then nothing.


Who would pay the mortgage and bills if you became ill and couldn't work? Look at income protection.


That's you covered but you mentioned a partner, although you are the main breadwinner what would happen if she had to stop work, could you cope on your salary alone?


You have no children now, is it something you are considering? If so that brings out the need to cover your partner if she is not going to be able to care for the children who will? You? If so that's time off work for you.

thenewbee

Any tips on where to look for life assurance for someone with diagnosed CFS/ME and a recent history of mental health problems? I'm being rejected by most mainstream applications.

kingstreet

An IFA or Protection Specialist who will refer your case to the specialists where you may be more successful.

Murts

thenewbee wrote: »

Any tips on where to look for life assurance for someone with diagnosed CFS/ME and a recent history of mental health problems? I'm being rejected by most mainstream applications.

Speak to a IFA or broker with as much information as you have, they will know who to approach for the best chance for you. It will really depend on the severity of the ME as to what cover you can get.

mikeyr01

Hi,

I have a couple of questions and I need a bit of advice on please.

Me and my wife to be are currently about to complete on our mortgage and have been talking about life cover.

Our mortgage is for £171k so would we be best to take out a joint MDTA with CIC for that amount over the term of our mortgage? Am I right in thinking that if one of us die or get diagnosed with one of the CI covered then the other person will recieve the 171k or however much the sum assured is as that time? If it is a CI and then survive, we will recieve the payout but that then puts and end to the policy so meaning w ecould not claim later on the life cover?

Is it worth taking out 2 policies in that case? one for Life and CIC and the other for just Life? Meaning if one of us is diagnosed with a CI covered then we will recieve the 171k and then if that person was to die, we could then claim on the life only policy?

Can sombody tell me if that makes sense? I am trying to avoid seeing an IFA if I can and am hoping I have my head round it enough to do so.

Thanks for any help in advance

kingstreet

I did a quote this morning for a couple.

Two singles for the same amount of life and CI costs about £2 a month more than the joint life option.

Chance of double the payout.

Make sure your incomes are protected before you spend money on CI cover. What happens if you can't work because you suffered something not on the CI list, but still have to pay the bills?

mikeyr01

Hi Kingstreet,

Thank you for your reply.


Forgetting the income protection part for the moment, would you suggest that we both have single life policies for life and CIC or 2 policies each for life and then seperate for cic? Will that not make it more complicated with regards to owners of the policy?

I am confused as to why there would be double the pay out like you said?

Thanks again.