Life insurance

in-trouble_3

hiya,

wonder if anyone can help me

I have had life insurance with scottish widows for 3 years which i pay £27 a month, its a 20 year policy so if i dont die in the next 17 years i dont get anything from it, i am 34 years of age. I have been told that this is a bad policy

I am looking for another life insurance policy i was wondering if anyone could advise a good one.

many thanks

dunstonh

I have been told that this is a bad policy

Whats wrong with it?

I am looking for another life insurance policy i was wondering if anyone could advise a good one.

No we cant. We know nothing about you and with around 15 different types of life policy available, each with different options we cant pick one out of the hat and say its right for you without knowing why you need one.

Around 3 years ago, Scot Widows were coming out very well priced (on the whole of market front and not the LloydsTSB re-labeled more expensive versions). That was a time when life assurance was at its lowest cost and premiums have started a slight rise. Expectation (according to this weeks financial press) is that premiums are going to start rising again.

Whilst Scot Widows arent coming out well priced at this time for new business, you get your premium based on when you take it out (assuming its a guaranteed plan).

in-trouble_3

dunstonh wrote:

Whats wrong with it?

.

well if i dont die in 17 years when i am 51 i have to renew my policy again and start from scratch

in-trouble_3

dunstonh wrote:

Whats wrong with it?


No we cant. We know nothing about you and with around 15 different types of life policy available, each with different options we cant pick one out of the hat and say its right for you without knowing why you need one.

Around 3 years ago, Scot Widows were coming out very well priced (on the whole of market front and not the LloydsTSB re-labeled more expensive versions). That was a time when life assurance was at its lowest cost and premiums have started a slight rise. Expectation (according to this weeks financial press) is that premiums are going to start rising again.

Whilst Scot Widows arent coming out well priced at this time for new business, you get your premium based on when you take it out (assuming its a guaranteed plan).

the reason i took the policy out was that if anything did happen to me that my daughter would have some money, i am looking for a policy that i dont have to keep re newing every 20 years.

i am insured for £100.000

so do you think this is a good policy even though at 51 if i dont die i get nothing from it and have to re new it?

dunstonh

well if i dont die in 17 years when i am 51 i have to renew my policy again and start from scratch

That doesnt make it bad. You have a need for life assurance and you cover that need. If you die in that time, your dependents get the money, if you dont, they will be better for having your around.

i am looking for a policy that i dont have to keep re newing every 20 years.

That would be a whole of life assurance. However, what would your need be for that? Once your daughter is old enough, she wont be financially dependent on you. So, it would be a waste of money moving to a more expensive WOL policy compared to the term assurance now.

so do you think this is a good policy even though at 51 if i dont die i get nothing from it and have to re new it?

Life assurance is just like car insurance and house insurance. You pay it when you have the need and you stop when you dont. It is not a savings account. It is a bill.

If you daughter is going to be old enough at the end of the term then dont worry about it.

jasonking

It depends on the age of your daughter. As long as in 17 yrs time she will be non-dependant (so around 4 yrs old now) and you have no other dependants then the term of 17 yrs is fine. You might want to consider the level of cover as inflation will have eroded the value of your £100k already and it will be worth even less in 5 yrs time. If you invested £100k today it would bring in around £400 pm gross...is that enough for your daughter to live off without you around?