Life insurance advise

girlgooner26

Hi all well firstly my apologies if im on wrong forum but this is my first time of posting.
Basically after much thought ive decided I want to get life insurance cover for myself, I want to get the following on this cover:

I want to be covered until my youngest is at least 18(she only 6)
wanting funeral costs covered
debts cleared (although I have no secured debts)
Would like my 4 children to get a payout if possible. (thinking into a trust fund if anything happens before there 18, not sure if this is at all possible)

Also it was usggested to me to have it indexed linked? is this a good idea?

Thanks in advance all :O)

bargainbetty

Depending on your age, your wages and your individual circumstances (renting, home-owning, married/single, employed/not) etc, it would be very hard to discuss. You might be wise to seek the advice of an independent financial advisor, or do your research with policy providers to see what the best deal is.

Trusts can be expensive. You can hold the money in four accounts with the children's name on, to be handed over at the point you think wisest. Do you have a plan for a named guardian should anything happen to you? If you are seriously considering such arrangements, then ensuring a roof over their heads with a loving guardian will take immediate precedence over this - you can name a preferred guardian on your will.

Good luck

weighty1_2

girlgooner26 wrote: »

Also it was usggested to me to have it indexed linked? is this a good idea?

Have you already spoken to someone regarding this? If so, are your skeptical about their advice? If so, why?

Writing life insurance policies into trust is not expensive, it is completely free of charge unless the advisor decides to charge a fee and it is, in most circumstances, a very good thing to do.

girlgooner26

Hi thanks for replies, I havent spoken to anyone yet was just some friendly advice off a friend who has dealt with this in the past. I have managed to find a finacial advisor who is willing to help me out this Thursday without any fee. I've started noting down questions that i'm wanting to ask whilst there.
I just wanted to know if anyone had dealt with this before because I am dumbfounded by the sheer amount of information and I can honestly say I dont understand an awful lot of it.
Thanks for your advide on this :O)

weighty1_2

Good stuff.

One thing to consider and hopefully something the adviser will look at, don't only limit yourself to only considering life insurance. Also, when I advise my clients I always try and obtain a budget which they are comfortable setting aside for their protection needs. This way I know that any recommendation I provide is going to be affordable. Be upfront about what you want to pay and make sure you are both singing from the same hymn sheet straight away.

The more information you give the adviser the more better the advice they can give you

Oh, and make sure the adviser is independent and not tied to one or only a few providers.

)

dunstonh

I want to be covered until my youngest is at least 18(she only 6)

Most people go longer than 18. 18 is very low. Typically 23-25 is more realistic.

debts cleared (although I have no secured debts)

So, you have multiple needs. That would suggest multuple policies or multiple segments as chances are all the needs do not expire at the same time. Plus family need is likely to increase whilst debt need is likely to decrease.

Also it was usggested to me to have it indexed linked? is this a good idea?

It can be but not all providers offer this and from a cost point of view (in the short term) it can appear more expensive. However, if you factor in increasing the coverage every 5-10 years to compensate for inflation then it could end up cheaper (as you are older each time). Plus, there is the risk you become uninsurable later or suffer a medical condition that makes the cost go up on new plans but does not affect existing.

I have managed to find a finacial advisor who is willing to help me out this Thursday without any fee.

Fee can be cheaper. So, dont rule that option out.