Life Insurance Discussion

jonnyb1978

Wondered if anyone could point me in the right direction as im trying to sort finances out.

My partner has a life insurance policy in her name only which was taken out a while back when the mortage in her name was only £35000 so im assuming thats what the policy may cover although im not sure and will have to look into this.

The house has recently been remortgaged and is now £60000 in both our names. My partner still has the existing life insurance policy so im thinking it might not cover the mortgage as it stands if she is to die.
Also i do not have any life insurance, though if i die in the job im in i have a Death in Service benefit of four times my salary. This which would cover paying the off the mortgage plus extra.

What are my options?
Is it wise for me to get cover also? Or can this Death in Service sufficient?

I have a quote in my partners name for the ' Mortgage protection life and critical illlness ' for the duration of the mortage. This is half of what my partner is paying now.

What will happen after mortage regarding the above quote. Will i need to take another policy out or is it best to get a cover that last our whole lives?

Thanks

lisyloo

Or can this Death in Service sufficient?

Do you have kids?
If you need to provide full time child care after your death then you might find it insufficient.
If you have no kids then my view is that it's fine providing you remember to review your situation should your employment circumstances change.

I have a quote in my partners name for the ' Mortgage protection life and critical illlness ' for the duration of the mortage. This is half of what my partner is paying now.

You also need to compare the cover that she currently has.
But if it's cheaper, higher insurance and better cover (including the illness part) then you might be better of changing.
Bear in mind that any conditions she has now will not be covered on the new policy.
Example: Let's say she has been diagnosed with Multiple sclerosis (first thing that comes to mind). If she dies of MS on current policy then she's covered. If she gets new plicy when she's already been diagnosed then she won't be covered as it's pre-existing. If she hasn't ben diagnosed with any medical conditions that could potentially cause death, then this isn't an issue, but it's always something to consider when starting a new policy.

What will happen after mortage regarding the above quote. Will i need to take another policy out or is it best to get a cover that last our whole lives?]

After the stated term the cover ends.
What do you want another policy for?
If you have kids you might need a policy for childcare, but if you have no kids and no mortgage then why do you want insurance?
A "whole of life" policy will be more expensive but if you think you might want it then it might be best to get it up front. But it's no obvious why you'd need it.

There are other things that might be more suitable for funeral expenses, but you need to explain your requirements here as it's no obvious why you'd need this.

Admiral_Burrows

flutterby_lil wrote: »

Can anybody recommend companies for income protection? i have life cover with sainsburys with free critical illness and am looking to take out an income protection policy to cover mortgage and a loan we have, thanks in advance, all suggestions welcome

Hi Flutterby_lil,

Are you sure your life cover has free critical illness cover and not free terminal illness cover?

The two are very very different and are often misworded!

Admiral_Burrows

k9pat wrote: »

hi, i have just been given a quote for income protection, mortgage protection with life and critical illness icluded and unemployment protection. this was for myself and wife 2 b. it is 2 seperate policy's, 1 at £55 and 1 at £30.

does anyone now if this is a gd policy or have any ideas or comments on it.

first time buyer.

Hi k9pat,

It very much depends on what you are getting for your money. How much cover each policy gives you and the deferment period.

Any idea how much it will pay and after how long?

jonnyb1978

lisyloo wrote: »

Do you have kids?
If you need to provide full time child care after your death then you might find it insufficient.
If you have no kids then my view is that it's fine providing you remember to review your situation should your employment circumstances change.

You also need to compare the cover that she currently has.
But if it's cheaper, higher insurance and better cover (including the illness part) then you might be better of changing.
Bear in mind that any conditions she has now will not be covered on the new policy.
Example: Let's say she has been diagnosed with Multiple sclerosis (first thing that comes to mind). If she dies of MS on current policy then she's covered. If she gets new plicy when she's already been diagnosed then she won't be covered as it's pre-existing. If she hasn't ben diagnosed with any medical conditions that could potentially cause death, then this isn't an issue, but it's always something to consider when starting a new policy.

After the stated term the cover ends.
What do you want another policy for?
If you have kids you might need a policy for childcare, but if you have no kids and no mortgage then why do you want insurance?
A "whole of life" policy will be more expensive but if you think you might want it then it might be best to get it up front. But it's no obvious why you'd need it.

There are other things that might be more suitable for funeral expenses, but you need to explain your requirements here as it's no obvious why you'd need this.

Thanks your pretty much aswered what i wanted. I do have kids but the Death in Service will pay off the mortgage and leave a considerable extra amount to contribute to kids up bringing. My partner and dependants will also recieve a benefit each year from my pension. At first thought it should be sufficient but will look more into it.
As for the end of mortage. Thanks. Her conditions are the same really or better as she has quit smoking. I will compare the policy with any new quote and take it from there.
Thanks again.

Admiral_Burrows

MPlant wrote: »

Hello again...

I know this doesn't really matter but I just to clarify that our drug use (rather mild: cannabis and a little dabble with ecstacy and cocaine) was unrelated to my overdose (some paracetamols). Having re-read my post I realise I sound like I was on the brown stuff, which I wasn't, and want to make that clear. I have never used needles or touched any hard drugs on a regular basis. Just a dabble out of curiosity.

In the end we contacted a IFA who has shopped around for us and we are currently waiting to hear back to find out whether we can get cover. The insurer seemed okay about the drug use and when I asked about the overdose it didn't seem to be a problem as it was not related to any mental health issues and I have never had mental health problems. Just too much to drink one night and the frustration of being in a unhealthy relationship.

Anyway, all the above clear, I have another query...

Our home insurance (contents) has come up for renew. Last year it was taken out before our insurance was renewed. I decided to shop around and found a better deal elsewhere. But then they asked the dreaded questions: "have you ever had insurance cancelled or refused".

The last time I gave an honest answer it meant the refusal of life insurance and having to explain all of the above about drugs and my overdose (I wish I'd never admitted it because I now realise it wasn't worthy or serious enough to explain as it wasn't recorded anywhere).

So this time I said 'no' because I didn't want to explain all of the above and get into another pickle with having to try and explain anything.

What should I do:
- Call back the insurer and own up to the refusal?
- Renew without telling them and hope for the best?

I mean, is it really likely that if I put a claim in they would discover my dishonesty and refuse to pay?

And if I was to be honest would this involve the refusal of insurance or an increased insurance quote because they would view us as some unstable nutters who are constantly shooting up and wrecking where we live?

All this for being so honest :A. Honesty is NOT the best policy because it doesn't get you a freaking policy. :mad:

Hi MPlant,

I'm sorry to say that IMHO you should call your insurer and confess. It shouldn't make to much difference for your home insurance but if you don't and then need to make a claim....

Basically it would be grounds for the insurance company to refuse your claim and lets face it, they will do anything they can to avoid paying a claim!

Let us know what you decide and how it affects your policy.

Chris

lisyloo

My partner and dependants will also recieve a benefit each year from my pension. At first thought it should be sufficient but will look more into it.

Yes I forgot about that.
Bear in mind that this benefit may well rise as you get older (if benefits come from your own private pension pot).

MPlant

An update: I called up and told them, they said it was not a problem. They were more bothered about whether a claim had ever being refused (fraud, etc). I got them to write me a letter to confirm the above.

Thanks for your advice everyone.

Annie_the_Queen

While looking for life assurance one company was consistently cheaper but when I looked at the details the premiums went up every year unlike other quotes so be careful guys!
Annie

dunstonh

While looking for life assurance one company was consistently cheaper but when I looked at the details the premiums went up every year unlike other quotes so be careful guys!

Thats because that policy is a yearly renewable term assurance . You are not meant to compare it against a level term assurance (or decreasing term assurance vs yearly renewable decreasing term assurance).

There are about 15 different types of life assurance. Some people may actually be better of in a yearly renewable term assurance despite the annual increases (that typically only start in your 30s). You shouldnt really cross compare the different types as you are obviously not getting like for like. However, sometimes different types of life assurance can be used to cover the same need.