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Level Term Life Insurance Guide Discussion

edited 5 October 2010 at 7:26PM in Insurance & Life Assurance
497 replies 149.7K views
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  • Weighty1Weighty1 Forumite
    896 posts
    Fifth Anniversary 500 Posts Name Dropper
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    Good Morning I would like some guidance regarding term assurance for a 66yo male in good health. I would like the policy to cover IHT liability and thought 14 years would be a reasonable length of time to adjust my finances to reduce any liability to IHT to zero, My question is if I take a decreasing policy then in the first 7 years there may be a liabilty to tax which exceeds the payout so is it possible to have a level term payout for say 5 years the a decreasing payout for the reamining 9 years. Or are there better options of which I have not considered?
    Thank you
    It sounds like your asking if you can have level cover which then switches to decreasing cover after 5-years, in which case you can't. You could arrange 2 separate level plans though, once which runs over 7 and one which runs over 12 (7+5) so that the 7yr plan drops off after that period leaving a lesser amount of cover in place.
  • busicatbusicat Forumite
    50 posts
    Seventh Anniversary 10 Posts Combo Breaker
    Assuming the sums insured for each cover "tranche" don't hit minimums, under a "multi-benefit plan" you might even be able to take 10 policies with the appropriate cover levels and end dates to step down more closely in line with expected liability.
  • johnspence1johnspence1 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    Thank you both for your advice, My options seem much clearer now
    John
  • CompetsophCompetsoph Forumite
    277 posts
    100 Posts Name Dropper Photogenic
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    Hi, I am looking for some advice. I am 26, single with no children. I am in good health and a non smoker. I am purchasing a property and wondering whether I should get mortgage term insurance. 
    As I have no dependents I don’t feel that I require this service pout wanted people’s advice.

    For example, if I died during my mortgage term what would happen to my property? Would this be sold to pay off the mortgage and the rest go to my NOK?

    Thanks,
    Sophie
    Officially a homeowner 🥳🥳
    September Grocery Challenge: £146.60/£200
    October Grocery Challenge: £175 (rough estimate)/£175
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  • dunstonhdunstonh Forumite
    103.7K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    and wondering whether I should get mortgage term insurance. 

    Do you mean decreasing term assurance?  If so then the simple way to decide that is if there is no-one who is financially worse off in the event of your death then you don't need it.

    For example, if I died during my mortgage term what would happen to my property? 

    The executor of the estate would sell it.  That would clear the mortgage and your estate will be distributed in accordance of your Will or rules of intestacy. 

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • Dolly67Dolly67 Forumite
    2 posts
    Third Anniversary First Post
    Does anyone know how I can get in touch with my Life Insurance provider Fortis (name on the direct debit). My life insurance provider has changed hands several times in the years we have had the policy (20 years) and my only reference now is my monthly direct debit. Wouldn't know what to do or who to contact if one of us was unfortunate enough to die!
  • busicatbusicat Forumite
    50 posts
    Seventh Anniversary 10 Posts Combo Breaker
    Hi Dolly, Fortis became Ageas which became AIG Life
  • adrian84adrian84 Forumite
    34 posts
    10 Posts
    Hello, I would like to say firstly that i am impressed about this topic, very good information.
    Secondly i would love your opinion, i just done a life insurance for 30 years for 200 000 with L&G through cavendish. Very easy process and straight forward, i choosed L&G beacause i have a very good impression about them, without actually reading anything about them.
    Now having some spare time i tryed looking on trust pilot and websites reviews and I am scared a little bit, they have a looot of bad reviews. Should i be worry? What is your experience with them? Should i cancel and go for another provider?
    36 years smoker no health issues.
    Thank you very much


  • johnspence1johnspence1 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    Hi
    I posted looking for advice a few months ago and thought that posting my experience in obtaining cover might prove useful to others. I started the process in April obtaining quotes and refining my requirements some advisors were telling me they were independent but I was sceptical I finally found significantly lower premiums using moneyminder buy online flat fee. Moneyminder were very good to deal with although because of the virus it was months rather than weeks setting up the first policy with L&G for 10yrs. When it was set up I started the second policy with Aviva for 13yrs it was much quicker  to set up September/October.
    The paperwork from both L&G and Aviva was around 50 pages although I only needed to input maybe 30 pages then emailed the forms back to moneyminder who submitted it to the appropriate insurer.
    The differences in premium over the lifetime of the policies depending on face to face advised and   non advised was +50-60% 
    I think reading the information on these forums asking for advice gave me the confidence to go down the non advised route will save me about £7500 in premiums over the terms of both policies which certainly was an incentive.

    John
  • adrian84adrian84 Forumite
    34 posts
    10 Posts
    For me setting up the policy was very easy, took maximum 20 minutes, most important is if L&G are a good comoany or shoulf i go fir another one with better level of customer service, reviews and  payout. My biggest fear is if something bad happens i will let my family with more problems and they will have to go to great lenghts to claim with L&G or even worse get refused in claim for who knows what reason.
    Also you made a very good point now instead of making 200k i could have split the amount in 2 and make insurancr with 2 companies.

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