Life Insurance Discussion

stephenni1971

Little_Miss_Penny_Less wrote: »

Dunston & Stephenni, thank you for your responses. I think you are both right in that this needs more consideration and I think I will contact an IFA as I am now concerned about pensions etc as well and am nowhere near knowledgable enough to know whats for the best there now that our circumstances are changing.

I was purely considering the Life Insurance policy as a guarentee of my survivors being able to repay the mortgage if I should pop my clogs. I hadn't considered leaving enough to cover my income for any length of time as I think my husband could cope on his wage if the main bill of the mortgage was gone. Also, while comfortable on our wages we are not well off and I don't know that I could afford additional life insurance to cover an income for any number of years - being able to afford life insurance at all is a bit of a luxury to be honest.

However, what amount would you recommend then to support a child per annum in the event of my death? Perhaps I can get some quotes on this for comparison and consideration to going down that route.

No-one here should recommend anything as no one knows your full circumstances.

Factors you need to consider are

The income each of you would need to maintain standard of living if the other died.
Would you still be able to work the same hours/job without OH for childcare etc.
Are there specific issues like school fees possibly?

Pure life cover is relatively cheap - but you need to consult a professional for issues like guaranteed/reviewable premiums, Waiver of Premium ( keeps up payments if you are ill & unable to work for example).

stars_bright

My partner and I both have life policies which have about 20 years left to run. We have been looking on the Cavendish and Moneyworld websites and have had initial quotes for the same level of insurance for quite a lot lower premiums. We are interested in changing to one of the cheaper ones and are happy to pay the fixed fee of £25 or £35 but what happens if we pay that when we apply, then they increase the quote when they get all the medical details? We both have some medical events which will probably increase the premium and if they make them more expensive in the end it won't be worth our while changing. Do we just have to take that risk or will the companies refund the payment if the final premium to too high?

dunstonh

but what happens if we pay that when we apply, then they increase the quote when they get all the medical details?

You choose to proceed at that point or not. If you dont proceed you dont get your money back.

Welsh_Poppy

Hello I am after a bit of advice My husband who has a degenative illness has no life cover to cover funeral expenses etc we have been quoted by sunlife as no medical needed and seemed our only option looking to pay 25.00pm and he is just 50...are there any other aveunes to go down?
Thanks as a bit of a losee what to do and where to go.

pink_star

Hi there

I'm posting on behalf of someone else, but basically, my friend was at risk of losing his home, so his parents bailed him out & bought the house, so the deeds are in his parents names now. He is still living there, legally as a tenant and pays them rent which meets the mortgage payment.

He is paying £46 life assurance with critical illness cover through Legal & General - sold by a financial advisor. He is needing to reduce his costs as his work has dried up, so on phoning them today, he got an earful that he's being irresponsible for wanting to cut the payment or give it up as who would pay his mum & dad?

Does he need this even though he is paying rent & no longer has a mortgage? He asked if he died or became critically ill would L&G pay his rent and the F/Advisor was uncertain then mentioned he thinks it's written in trust to cover his parents?

Any advice would be most appreciated.

Thankyou

Emma

dunstonh

Does he need this even though he is paying rent & no longer has a mortgage?

He doesnt need it even if he had a mortgage.

He asked if he died or became critically ill would L&G pay his rent and the F/Advisor was uncertain then mentioned he thinks it's written in trust to cover his parents?

if the agreement was to cover the parents then shouldnt he be having this conversation with the parents? After all, they used their money to bail him out once before.

Travel-DanB

Hi Pinkstar,

For starters, that sounds like a strange reaction from L&G!

I would advise that no, your friend doesn't NEED life insurance / critical illness cover - he doesn't have a mortgage, doesn't have any dependants(?) and doesn't feel it necessary to pay his parents mortgage off if he dies - if his parents have their own house (I assume they do) they could sell the house if he was to die or become critically ill.

If he's worried about being able to pay his parents rent so they can meet their mortgage if he becomes unable to work through sickness or an accident, he would be better looking at an income protection policy -

Just my 2 cents, I'm sure others will have differing opionions! :money:??

Dan

Travel-DanB

dunstonh wrote: »

You choose to proceed at that point or not. If you dont proceed you dont get your money back.

I've heard that you have to kick up a real stink to get a refund from Cavendish! You could always go through underwriting with another broker - see how much of a loading they put on your premium (it goes on as a percentage/multiple of the premium) and take the decision based on that - ?? :T

pink_star

dunstonh wrote: »

He doesnt need it even if he had a mortgage.



if the agreement was to cover the parents then shouldnt he be having this conversation with the parents? After all, they used their money to bail him out once before.

Thank you for your help. He is trying to find out from his parents, but they don't seem to know much as they don't understand it, which is not a good start, but the IFA was laying on guilt saying if he got rid of the LA & CI cover he'd put them at risk!!!

pink_star

Travel-DanB wrote: »

Hi Pinkstar,

For starters, that sounds like a strange reaction from L&G!

I would advise that no, your friend doesn't NEED life insurance / critical illness cover - he doesn't have a mortgage, doesn't have any dependants(?) and doesn't feel it necessary to pay his parents mortgage off if he dies - if his parents have their own house (I assume they do) they could sell the house if he was to die or become critically ill.

If he's worried about being able to pay his parents rent so they can meet their mortgage if he becomes unable to work through sickness or an accident, he would be better looking at an income protection policy -

Just my 2 cents, I'm sure others will have differing opionions! :money:??

Dan

Thank you for your help Dan, the IFA was rather rude and was just intent on him keeping the policy!
He has no dependents.
He doesn't want his parents to get in even more debt for him, hence asking the IFA for advice, to which he said he needed to meet with his parents and advise they pay the policy on his behalf in case he got them into trouble again?!!! I heard the call and was shocked!

I'll suggest he check out IPP