Life insurance help please :)

hollieinbloom

i am after some help to do with the life insurance me and my partner took out in 2009, we took it with nationwide, and pay £4.48 for me and £7.22 for my partner, and we now think our insurance isn't very good, and we want to swap. We got it out because we have a daughter.
the terms are:
nothing will be payed out before 2014
if i pass, my partner gets £250pm til our daughter is 21
if my partner passes, i get £500pm til our daughter is 21.

we have realised we are paying £13.70 a month which we could possibly use to pay from a better insurance which doesnt have a run out time (until we pass) so if nothing happens to me and my partner, we will have paid out £3500 to something that will come of nothing.
obviously it's "insurance" so it's incase something happens, but i think we will be better off cancelling and start paying into an insurance that we can keep for life and will pay out a much better deal than we are currently on.

does anyone have any good life insurance cover that they think would benefit us too? x

kingstreet

You appear to be paying £11.70 a month for something similar to family income benefit. This is the cheapest form of cover because it pays the sum assured in instalments and has a relatively short term, until your youngest child's 21st birthday.

If this cover no longer suits your needs, it's possible to take higher cover over a longer period. The premiums will of course reflect this and will involve you paying more. Don't cancel this until your new cover is in place.

Cover should be written in trust to ensure those you wish to benefit receive the funds quickly and with no need for probate. A trust also helps avoid Inheritance Tax later, if you don't have a potential problem now.

A good Independent Financial Adviser in your area would be your best bet. Don't go to banks or building societies for insurance "advice."

ACG

It doesnt seem like you are getting a bad deal there.

It might not be what you are after exactly, but as said if you want a higher amount of cover or insurance that will cover you for a longer term then your premiums may well increase.

Just a thought though, what would happen if yor partner didnt die but for instance had a stroke and couldnt work. Would he lose his income? If so then you may want to also consider Income Protection for the 2 of you.

Also insurance that guarantees a payout either doesnt pay out a lot or is quite expensive in comparison to what you have.