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Level Term Life Insurance Guide Discussion

edited 5 October 2010 at 8:26PM in Insurance & Life Assurance
485 replies 147.9K views


  • Weighty1Weighty1 Forumite
    818 posts
    Fifth Anniversary 500 Posts Name Dropper
    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
    46 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
    2 posts
    First Post
    Thank you both for your advice, My options seem much clearer now
  • CompetsophCompetsoph Forumite
    203 posts
    100 Posts Name Dropper Photogenic
    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?

    AIP: 29/02/2020
    VIEWED: 08/06/2020
    OFFER ACCEPTED: 09/06/2020
    MORTGAGE OFFER: 24/06/2020
  • dunstonhdunstonh Forumite
    102.2K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
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