Level Term Life Insurance Guide Discussion

VanquishStorm

A bit of a sad question but does anyone have experience in claiming on their life insurance or a spouses life insurance?

All reviews seem to be about the buying process which tbh they are all the same, I would want the piece of mind that God forbid it one of us had to claim then the process would be easy.

SonOf

A bit of a sad question but does anyone have experience in claiming on their life insurance or a spouses life insurance?

Dealt with plenty of claims over the years.

VanquishStorm

Which providers? And have you ever come across any issues in payouts?

fullofcold

VanquishStorm said:

Which providers? And have you ever come across any issues in payouts?

Only time I have ever come across an issue was when the life assured took their own life within the first twelve months of the policy start date.

lchvmc

I wanted to leave some feedback about Cavendish. We spent a long time giving them a great deal of personal information. When we got quotes, very little of this information carried through using the link Cavendish provided for the insurers, meaning we had to spend a long time doing it again. Even our address didn't pull through. When the quote was provided, I would have preferred that Cavendish give greater advice about the need for further medical information before we could obtain insurance. The process is now delayed and had we been aware of the necessary delay from Cavendish we could have managed our mortgage application differently. I wouldn't use them again. 

csgohan4

lchvmc said:

I wanted to leave some feedback about Cavendish. We spent a long time giving them a great deal of personal information. When we got quotes, very little of this information carried through using the link Cavendish provided for the insurers, meaning we had to spend a long time doing it again. Even our address didn't pull through. When the quote was provided, I would have preferred that Cavendish give greater advice about the need for further medical information before we could obtain insurance. The process is now delayed and had we been aware of the necessary delay from Cavendish we could have managed our mortgage application differently. I wouldn't use them again. 

Cavendish are generally initiation only brokers, and hence don't provide advice, you get what you see. But they have advisers which you may have to pay extra for, although i have not used this service so I am unsure

Lifesearch on the other hand do provide advice and usually are slightly more expensive but not always. I have used both and purchased from both. If you know what your looking for, then Cavendish will suit you, if unsure, the latter. 

Personal choice. 

RobSpark

Can anyone tell me what would be the point of continuing to pay for a decreasing term policy in the later years? Most obviously the final year of the policy. Continuing to pay out the same premium for a potential £5K payout in the final year as compared to a £150K payout in the second year doesn't make any sense. Have I missed something??
Also, are payouts index linked for level term policies? £150K will likely be worth half of nothing in 20 years time, but then I suppose if the annual premium remains the same then the payout:premium ratio remains the same...
Hoping for some enlightenment before I bite the bullet...
Thanks

SonOf

Can anyone tell me what would be the point of continuing to pay for a decreasing term policy in the later years? Most obviously the final year of the policy. Continuing to pay out the same premium for a potential £5K payout in the final year as compared to a £150K payout in the second year doesn't make any sense. Have I missed something??
Its a judgement call for you to make.

Also, are payouts index linked for level term policies? 
Only if you included index linking as an option at the outset.    

Old_Lifer

It is for this very reason, that the policyholder may simply stop paying  towards the end of the term,  that during my service with a Life Office it was common practice for Mortgage Protection Policies (decreasing term assurances)  to have a premium payment term shorter than the term on the policy.  All our 25 year MPP policies had a payment term of 22 years, 20 year policies a payment term of 17 years and 15 year policies a payment term of 12 years.

Index- linking was not available on level term assurances during my service.  Perhaps someone on the Forum who has current experience can tell us if it is available nowadays.

Old_Lifer

Thank you  SonOf.     I only read your post after I had posted  and then scrolled back  up the screen.