Life Insurance - anyone I should avoid?

JennyW_2

My husband and I want to take out level term insurance. I've got some basic quotes from the likes of L&G, NU, Liverpool Victoria, Standard Life and Axa.

Is there any company that I should (or should not) go with? Thanks.

dunstonh

The ones you have mentioned are fine.

Avoid reviewable cover and make sure it isnt a yearly renewal term assurance (sometimes referred to as current costed).

Remember to use a trust document if applicable and/or utilise pension term assurance if is likely to be better value (usually when one/both are higher rate taxpayers and the required sum assured are different for both).

JennyW_2

thanks for that. I will take out a policy with guaranteed premiums.

One other thing, I've read the basic information on each one and it seems that Standard Life were the only ones offering Free Accident Death Benefit:

• The plan automatically includes Free Accidental Death Benefit from your date of application until we accept or
decline it (up to a maximum of 30 days). If you have an accident during that time and die within 90 days of the
accident, we’ll pay out the lower of:
– £250,000, and
– the amount you’ve asked us to pay out on your death.


All the others just say this:

To pay out if you die or become eligible for Terminal
Illness benefit, (for example, where life expectancy is less
than 12 months) during the period of cover; whichever
occurs first. This cover does not apply during the last 18
months of the period of cover.
● Terminal Illness Cover
This is included automatically, for plans with a term of two
years or more at no extra cost. This pays the guaranteed
sum immediately (instead of on death) if you are
diagnosed as being terminally ill, with a life expectancy of
less than 12 months. This cover does not apply during the
last 18 months of the period of cover.

dunstonh

once in force, they all have accidental death cover as its life assurance. What SL are saying is that they are offering it during the underwriting process.

Bossyboots

Avoid Royal London and CIS if you want your payouts made promptly and without hassle.

matrix999

Can anyone answer a quick question for me:-

I've recently got on the property ladder and have a mortgage with the Halifax. Do I need to take out Mortgage Life Assurance? I'm 26 years old, single with no dependants.

Would appreciate your comments.

Thanks

dunstonh

Do I need to take out Mortgage Life Assurance? I'm 26 years old, single with no dependants.

Based on that alone, there is no one financially worse off in the event of your death, so no you dont.

You would generally only be looking at ASU, PHI and CI in your case.

matrix999

dunstonh wrote:

Based on that alone, there is no one financially worse off in the event of your death, so no you dont.

You would generally only be looking at ASU, PHI and CI in your case.

Can you tell me what the ASU, PHI are? I think CI is Critical Illness?

I have taken a policy out which covers my mortgage payments if i'm sick or have an accident and unable to work. This pays my mortgage for 12 months. Is this a good thing?

Thanks

dunstonh

I knew when i typed those initials I should have used the full names.

ASU = accident sickness and unemployment. Thats the generic name but is sometimes called mortgage payment protection insurance.

PHI = permanent health insurance.

CI = critical illness.

You have taken out ASU. PHI doesnt include unemployment cover but is underwritten to your circumstances (unlike ASU) and pays out to the selected final date (usually retirement age) or if you return to work, whichever is earlier. CI is the last of the three to consider normally although you do tend to find it gets pushed ahead of the others by some.

matrix999

Thanks,

hmm.. You've got me thinking now!

Maybe I would be better getting a quote on PHI and comparing it to the Accident/Sickness policy I have taken out with Best Insurance. The PHI sounds better as it covers your mortgage until retirement if your unable to work due to accident or sickness but the ASU one only covers the mortgage for 12 months.

Can you recommend a good site or place to get a quote for the PHI

Thanks