Life Insurance

BeerBelly

Hi guys,

Just trying to sort some life cover for myself and partner. The ones we have currently looked at don't pay anything back if we 'survive' the term.

Speaking to some people they have suggested an endowment for Life Insurance (NOT mortgage related/protection). We are going for separate policies for a a fix amount each.

All the quotes I get are something like the following:

- Dead and Critical Illness Cover
- Separate policies, covered for 200k each

I cant seem to find any that pay out if we don;t claim. Am I looking in the wrong place1

Also can anyone tell me the difference between fix level and decreasing level cover? Is decreasing only if you are linking it to pay off your mortgage?

New to all this, so thanks in advance for any help!

BeerBelly

Is this on the wrong board?

dunstonh

Endowments are obsolete and you wouldnt want one.

Investing is one thing. Life cover is another. If you want an endowment style then do a regular contribution ISA and a term assurance. It will give greater life cover and a greater lump sum than an endowment.

I cant seem to find any that pay out if we don;t claim.

Its life assurance. It pays out if you die. Do you get anything back on your home insurance or car insurance if you dont claim?

Also can anyone tell me the difference between fix level and decreasing level cover? Is decreasing only if you are linking it to pay off your mortgage?

decreasing term assurance sees a reducing sum assured over the period. A repayment mortgage would be a good example of when one is used but it isnt the only example.

ashleyfae

Can someone help me. I thought I had it all sorted in my head regarding Life insurance and critical illness cover. I was about to try and get cheaper quotes as I think we are paying a lot ...but now after reading some of the info on this web site I am not sure.
Between my self and my partner we pay out,
Me = £19.05
£20.00 pays out £61,000 untill 2020 then only£19,000
Joint= £32.51
Partner = £43.11 TOTAL of £114.67 per month

These policies have all been advised by Financial advisors and are life and critical illness cover and give us each approx £122,000 on death or criticall illness.
Are we paying over the odds or not. I don't think the terms of the critical illness are reviewable i,e what it says in the policy stand for the whole term.

lisyloo

These policies have all been advised by Financial advisors and are life and critical illness cover

The first question I would be asking is "are these the right policies for you".

Critical illness only pays out a lump sum (no ongoing income) and only if you get certain listed illnesses (usually a fairly small list).
Is this really what you need?

So if you get a long term illness and can't work, how long will your company sick pay scheme pay for?
Usually the answer is 6 months and then you are on very low state benefits.

Do you have any scheme covering you for income if you can't work for a long time?

ashleyfae

No we don't have anything that covers us if we can't work except our mortgage protection which covers us for 12 onths. We pay £35 per month for a joint policy that pays out enough to cover our mortgage payments.
I have had a look at the list of things that the critical Illness covers and always thought it kind of covers most things. It also covers our children if (god forbid) they had a life threatening illness.

I can't seem to find anywhere on line that can give me a comparison for life and critical. it's hard to compare totally like for like without any experience in the field.

dunstonh

I can't seem to find anywhere on line that can give me a comparison for life and critical. it's hard to compare totally like for like without any experience in the field.

That is because the research providers for this data make [too] much money charging IFAs to get it. If it was available on the internet for free they would lose millions of pounds a year.

You can find some information but you do need to know what you are looking for. If you know what you are doing then enough info is there to make a pretty good stab of it. If you dont know what you are doing, you could make a pigs ear of it. Its a case of knowing your own limitations.

lisyloo

always thought it kind of covers most things

I would check the policy.

Does it cover you for?

bad back
arthritis
heart attack
stroke
debilitating accident.

How long would the lump sum last you as income? (if you are young you may have many decades to go until retirement).

Personally I favour PHI which pays an INCOME until retirement if you are unable to WORK.
This is quite different from critical illness.

davetaffy

Hello to all...
My parents are in their 60s and are looking for life assurance/illness policies. Can anyone advise me which is the best/cheapest?

Thanks in advance...

dunstonh

what are they looking for life assurance for?

There is no one best/cheapest. The "best" company will depend on circumstances.

BeerBelly

Thanks for clearing that up.

We will look to get separate policies, flat rate for 200k each.

Working out around £45 a month for both of us.