Reviewable or guaranteed rates plus one other question

moozie_2

Hello there

Going to see an IFA next week and they have asked us to give some thought on which we would prefer, reviewable or guaranteed cover. They explained briefly what those two terms mean and gave us a couple of examples of how much it would cost us.

I was wondering if anyone has any comments we should consider before making a decision or even seeing the IFA as we were not aware of theese two options.

Also, on another issue, my partner will be 65 before the mortgage is paid off. Can he have cover until that age only or does he have to have cover for the duration of the mortgage (25 years)?

Many thanks for any views

dunstonh

Short term plans can get away with reviewable as there is usually at least 5 years that the premiums cannot be changed. Long term plans are better with guaranteed.

Term should match need. It may be that one plan is used to cover the mortgage and a different plan used to cover the income need.

Make sure the adviser is an IFA. 2/3rd of people seeing tied agents believe they are really seeing an IFA. On the initial disclosure documents given to you at the meeting (virtually the very first thing done) on the front page there will be two sections. Investment and Insurance. In the investment section it should have a tick in the box "we offer products from whole of market". Only IFAs or whole of market advisers have that option. Ther insurance section will have a tick box for life protection in "We offer products from a range of insurers for Term Assurance, Critical Illness, Income Protection & Private Medical Insurance......". That is the option used for whole of market advisers.