Confused about where to get life insurance/assurance!!

Bob73

I'm a newbie to foruims so hope this is a valid thread!
I have read the MSE guidance on life insurance/assurance which was very helpful but also confusing!!
Both my partner and I are self employed and have a decreasing term life assurance and critical illness policy but I am concerned that this is not sufficient to cover debts, mortgage and death/loss of income should we not be able to work. We have 2 dependants also so if one or both of us was incapacitated or died I thing they/we'd be stuffed!

Can anyone advise whether I would be better getting one policy to cover all these eventualities or if seperate Family Income protection, mortgage protection and income protection policies would be more advisable. The other question is the benfit of policies in trust in your opinion?
Thanks for your help in advance!

ACG

We cant "advise" in the true sense of the word on these forums, you need to go and see an advisor for that.

However, its usually best to cover each need seperately. You can do this all with 1 life office if you wish and that company will only charge one "admin fee", but sometimes it can work out better to do the different policies with different companies depending on a number of different factors.

You might be best speaking to an advisor to be given specific advice on the best way to do it.

weejonnie

Advice can be given in that if I suggest you take out a type of policy then that is not advice, but if I suggest you take out a policy with XYZ Insurance then that is advice.

To cover your partner and yourself against death is a straightforward life insurance policy - unless things have changed then level term insurance is cheapest - Guidelines used to be 10 X salary and at least until dependents are through College.

To cover yourself against accident/ sickness - there are a couple of options. One favoured would be to take out a personal accident and sickness (PAS) policy that would pay out benefits for a year and then an income protection policy that would pay out benefits until you were 65 or more - but with an excess of 12 months - so that it only kicks in when the PAS policy expires. Note that a PAS policy is renewable and could be withdrawn if claims are made - but an IP policy is for the whole period (once started only you can stop it).

youask about mortgage payment protection - there has been a lot of mis-selling of this type of product. If you ask around and stay clear of banks you will find policies that will cover you against 'cessation of trade'. The policies have an advantage over PAS policies in that the premium normally is the same whatever your occupation (this is obviously of great benefit if you are in a heavy manual industry) - however there are no capital benefits (Death, Loss of limbs or eyes) available. (Benefits are usually payable for a year)

As to which policies to take - there I can't help.

ACG

I disagree, you can tell them the different types of products (as you have done) but im not so sure you can suggest they take out a certain type of policy, we dont have enough information on here to make suggestions like that.

Just my opinion though.

It sounds like the OP knows what they should be looking at and have done the research but to narrow it down maybe or for the more specific advice i still think an advisor is probably the better route rather than going direct.

With regards to placing the policies in trust, its usually better to do that. Presuming your not married, any pay out on a single life policy would go through probate, if its in trust it will get paid out and be with the correct person a lot sooner.

Bob73

Thanks you both so much for your sound advice (or not advice!!) and thoughts.:beer:
I will look for an advisor, another minefield for me as I have never done that before either!

Interesting about the mortgage payment protection, our's came with our NR mortgage 10 years ago and based on the guidance I have now read, may well be up for a 'change'

Bob

ACG

If you take ou Mortgage Payment protection, that will reduce the amount of icnome protection you can take out.

So its worth making sure you do it properly with or without an advisor as you could end up being over insured, and paying for something you can never claim on fully.

Personally i would just go on google and put in mortgage or financial advisor, you will find a few local to you.

dunstonh

I disagree, you can tell them the different types of products (as you have done) but im not so sure you can suggest they take out a certain type of policy, we dont have enough information on here to make suggestions like that.

Just my opinion though.

Matches the opinion of my compliance as well. They say keep it generic and avoid any perception of advice and if you feel someone is taking it as advice then point out that it isnt.

Rishabc2

Hey friends last week only in purchased life insurance for my parents and i must say that the insurance company is really very nice because that same insurance company also provides online investment plans too.As per my experience i would like to suggest you to check out on buyonline.aegonreligare.com this is the best insurance company don't get confused choose the best.

OshayAway

dunstonh wrote: »

Matches the opinion of my compliance as well. They say keep it generic and avoid any perception of advice and if you feel someone is taking it as advice then point out that it isnt.

Agreed, any personal recommendation constitutes advice. By suggesting an individual takes out a type of policy; that in itself constitutes establishing a specific need. For example, if it were suggested a single person take out life cover, that could attract a justifiable complaint in future and the person suggesting it, could be held accountable.

Information only, without advice, recommendation, suggestion or even "if I were you..." is non-advised. Anything more than that is.

kingstreet

Rishabc2 wrote: »

Hey friends last week only in purchased life insurance for my parents and i must say that the insurance company is really very nice because that same insurance company also provides online investment plans too.As per my experience i would like to suggest you to check out on buyonline.aegonreligare.com this is the best insurance company don't get confused choose the best.

We're in the UK! At least spam places where you can actually write business, you numbskull!!! :mad:

ACG

kingstreet wrote: »

We're in the UK! At least spam places where you can actually write business, you numbskull!!! :mad:

Remind me not to get on the wrong side of you in the mornings :P