How do I get advice on Life & Mortgage Term Insurance

Seaxwyn

Hi there

We have two separate policies for Life Insurance and Mortgage Term Assurance. I'm wondering if we could combine into just one policy.

What is the best way to research options?

Thanks

dunstonh

We have two separate policies for Life Insurance and Mortgage Term Assurance. I'm wondering if we could combine into just one policy.

Some providers will package the two into one premium but technically, they are two segments of the same plan.

If you mean you want just one policy with one sum assured and term, then that usually isnt the best thing to do.

What is the best way to research options?

Pay for research software or get advice.

Seaxwyn

Hi Dunston

Yes that was clumsily worded - apologies. What I want is a policy or policies that would pay £250,000 if my partner or I were to die.

We are currently paying £183 per month for this (two separate polices) and people on the DFW board have suggested this is high. So I would like to shop around. The policies we have were set up for us by IFAs, I could go back to an IFA but if it's easy to research oneself on the phone or whatever I'd like to do that also.

I don't like the sound of buying software so I guess it's off to find an IFA. If you have any other advice I'd be very grateful to hear it.

Happy new year

Seaxwyn

dunstonh

We are currently paying £183 per month for this (two separate polices) and people on the DFW board have suggested this is high.

Obviously it depends on your age, occupation, smoker status and amounts and what it covers. However, it is well above the average premium and does suggest more than just life cover. Possibly there is already some packaging of other options in there already.

The policies we have were set up for us by IFAs

That makes me think there has to be more than just life cover in there. For a couple in their 30s, you would be paying around £30-40pm for the amount you mention.

if it's easy to research oneself on the phone or whatever I'd like to do that also.

If its pure life cover you want, then its easy to go to a number of online sites and go by premium. If you avoid the yearly renewable term assurance and reviewable premiums then you should be fine. Obviously you wont have access to underwriting information (i.e. health issues are treated differently with different providers) or claims history and admin.

If you want to include critical illness cover then it starts getting more detailed as different providers offer different levels of cover and going by premium is no longer the best way as the cheapest could be a budget offering. You also get reviewable and guaranteed premiums coming into play here.

I don't like the sound of buying software so I guess it's off to find an IFA. If you have any other advice I'd be very grateful to hear it.

Check what you have first. I dont think you have plain life cover. There has to be more in there for that premium or you have been increased due to health reasons or high risks.

Seaxwyn

Thanks Dunstan. I really appreciate your advice. I'll look into the policies and see what they actually involve. If it's OK with you I'll report back here with the details in case you have further insights.

The premiums would be higher as we are 42 and 56 but in good health and not in dangerous occupations!

Thanks again

dunstonh

age 56 would certainly push the premium up but still cheaper than what you are paying. Post back with the details, along with the insurer as any of the advisers here would know the pricing of the company and how it compares to others.

Seaxwyn

Thanks Dunstonh, I'm very grateful.

Basic facts: me 43 next birthday, partner 57 next birthday, both non smokers in good health. We'd like cover to ensure that in the event of death or severe disability the mortgage was paid off plus around 100k extra. So about £250k total.

I've had a delve in the files and this is what I've found.

Life insurance: we each have a policy with Equitable Life. It's called 'Pension Life Cover'. From what I understand it gives £0 for retirement benefits but £100,000 life cover, expiring 10/11/2020. I pay 7.77/month and OH 31.19/month (assume because of our different ages). OH was a smoker when we took this out but is now smokefree for a year.

Mortgage Term Assurance: with Standard Life, the letter calls it 'Lifetime Protection Series'. We pay £144.22/month and the idea is it pays off our mortgage in full shoud one of us die. I can't find the latest paperwork but I have the tinsiest fear that this pays a decreasing amount as time goes on, as in theory the settlement figures goes down - however we are currently paying interest only. Sum outstanding around £153k.

Is this enough to go on? I will be very interested to hear your advice.

Thanks again

Seaxwyn

dunstonh

The pension term assurance, if arranged prior to 2001 will continue to get tax relief until it finishes. If you are a higher rate taxpayer, you can claim high rate relief on top of the basic rate relief you already get. Being Eq Life, I assume it is pre 2001. This will also be pure life cover with no addons.

Standard Life rarely appear near the top of the list. I dont do much life cover myself as I am an investment specialist but SL have only come out top once in the last 5 years for me as best price. The premium would suggest critical illness cover is included and possibly waiver of premium as well.

Life assurance has dropped massively in price over the last 4-5 years and you should find that you can get it cheaper now.

Seaxwyn

Thanks Dunston

How annoying, I never knew about the tax relief, I suppose one can't claim it restrospectively...... No thought not.

I will look into a better alternative for the Standard Life one. Eq Life are sending me a quote for simply increasing their cover, but I need to investigate if there are any features of the SL one that are worth keeping.

Thanks so much for the advice - really appreciated.

jasonking

oncve you have got details of exactly what your SL plan covers you for you could try https://www.moneysupermarket.com for comparitive quotes for starters