Level Term Life Insurance Guide Discussion

Soph60

Lapadore16 wrote: »

My husband has no life insurance and he is 76 in April 2015. It was something he never bothered with over the years and now I need to find out the best way to cover him either with a pre-paid funeral plan or a whole of life policy.
I wanted advice on which companies would cover him but not at astronomical premiums. I am some years younger than him but although it is not certain that he would go first, I would feel better financially if I could give him a good send off.
Hope somebody can advise.
Thanks.

Best Price FS do an over 50's plan. Age cut-off is 75 so you'd have to be quick but might be worth a shot.

Hodge_the_Poet

Excuse my ignorance but Ihave been told that the three life policies that my father holds are a waste of cash in as much as two will refuse to pay out on his demise. Is this so? Should he try to cash in two of the three.

mgfvvc

Hodge_the_Poet wrote: »

Excuse my ignorance but Ihave been told that the three life policies that my father holds are a waste of cash in as much as two will refuse to pay out on his demise. Is this so? Should he try to cash in two of the three.

It sounds like nonsense to me. Why would 2 refuse to pay out? You won't get 2 insurers to pay the same claim on a car, but life assurance is different as it's not a fixed value. A £200K policy and a separate £100K would normally be equivalent to a single £300K policy, unless there is something I am missing.

kingstreet

Hodge_the_Poet wrote: »

Excuse my ignorance but Ihave been told that the three life policies that my father holds are a waste of cash in as much as two will refuse to pay out on his demise. Is this so? Should he try to cash in two of the three.

You're going to have to give us a lot more than this for anything like an answer on which you can rely.

First of all, we need to know what these plans are, why you've been told what you've been told and by whom...

dunstonh

Excuse my ignorance but Ihave been told that the three life policies that my father holds are a waste of cash in as much as two will refuse to pay out on his demise.

Life assurance is a very easy product. It pays out on death. So, having a life assurance doesnt pay out on death does not sound right.

weelal123

Can anyone give me advice or previous experiences of serious illness cover?! I am thinking of using PRUPROTECT but I am very sceptical and aware that they have so many 'get out of jail free' cards!

Would really appreciate anybody's help!

We are a couple in our late 20's with a mortgage of 120k and no pre-existing medical conditions!

Thanks,

Lauren x

busicat

When I claimed for cancer, my only regret was not having taken more cover! There was no messing, and they did everything to get the evidence and make the payout ASAP. (Scottish Widows...but no point trying them before they open up to IFAs again )

Claims do get turned down if they're not severe enough to meet the definition (even though it's still serious to you having the illness!), but they have to draw the line somewhere or the cover would not be affordable. And claims get turned down for people who cheated with what they said about their health to get the cover in the first place. But even so, around still 94% get paid...even though the public think it's more like 50%!

Pruprotect has made an effort to make cover more fair for different scenarios, even though it makes things more complex. And I like that they reward efforts to stay healthy. I get the impression a lot of financial advisors think it's good cover.

So you won't be surprised to see me say "Go for it!" and going through an adviser is worth doing to get you matched up with the best tactics for you on cover level, provider and price. (Surprisingly, it can be more expensive to go direct currently)

clpearce

Hi we are looking at getting life insurance, for our children to see them past education. 400,000 in a joint policy over 20 years. Guaranteed premium, sum to rise with inflation, put in trust. I'm completely naive really and only know from chatting to lifesearch about it. We have been quoted £24.54 jointly. Only health issue was depression as a child and treatment finished 4 years ago. Would individuLs on here recommend lifesearch? They seem good, dealing with everything for you, any tips?

busicat

Lifesearch seem to have a good reputation amongst industry peers is my impression.

(Admit am confused about the purpose of the cover. Assumed would be on your (you, the parents') lives to pay to adult kids, but health comment sounds like it's on theirs. But am sure Lifesearch will have it all under control. Glad you know to do the trust thing. Surprising how many don't do it, or if they do, don't make sure there's actually a trustee after they die to ensure quick payout)

Tiger22

Are life insurance payouts always tax free when they come from a policy in trust?

Scenario:

My wife and I have a joint estate, equally divided, of about £700,000. We have one daughter. If I died my wife would inherit everything and when she subsequently died, our daughter would then inherit (paying whatever inheritance tax was owing after the double nil-rate was deducted).

I wish to take out a level-term life insurance policy of £500,000 which would pay out in the event of my untimely death and I wanted to put it into a discretionary trust with my wife as the trustee. The idea being that if my wife does not not need the full amount of the payout from the life insurance then she could make our daughter a partial or full beneficiary. This, from everything I have read, would ultimately benefit my daughter by potentially reducing her inheritance taxes.

My question is this. If I died and my wife, as trustee of the policy, decided to distribute the entire £500,000 to our daughter, would my daughter be subject to any taxes on this amount, at point of distribution or further down the line? There is surprisingly little direct information available on tax obligations of a person who has received a large sum of money as the beneficiary of a life insurance policy managed by a trust.