Life Insurance Discussion

pigletpig

dunwe_stonh wrote: »

If your financial need is different then yes. If not then no.

I thought we may need seperate policies as I am expecting the premiums for myself to now be sky high.

Suggestions for what?

We cant suggest what you have as we dont know your current options (i.e. guaranteed insurability options) or if you would be looking at budget options or comprehensive options or what distribution channels you would use (i.e. not worth mentioing a provider that only retails via IFAs if you dont want to use an IFA).

Dont mind using an IFA. Mainly questioning whether critical illness cover is appropriate for my husband or whether income protectoion we have already is enough

pigletpig

I thought we may need seperate policies as I am expecting the premiums for myself to now be sky high.

pigletpig wrote: »

Dont mind using an IFA. Mainly questioning whether critical illness cover is appropriate for my husband or whether income protectoion we have already is enough

Gareth83

I'm almost 27 and have a 1yr old son although currently not living with him and the gf. I own my own house with ~80k mortgage.

From the article my guess is I should opt for a level term policy for 16yrs (ie. till my Son finishes compulsory education) and opt for an amount 10 times my income. I have used Cavendish to get a quick quote and LV come out the cheapest at around £9pm.

Is a level term really what I need/want? Will my mrs benefit or my Son? Can I choose? I'd rather set something up so my son benefits primarily, although if I died does it really matter as I'd be dead lol?

However quidco offer £53 cashback for a new policy and the premium is also around £9pm direct. So I'm assuming to do it myself for this?

Am I tied into this for 16yrs or can I just cancel/change say once a year or whatever?

With respect to smoking what if one occasionally smokes once had a drink. Would one be classed as a smoker?

starrystarry

Gareth83 wrote: »

With respect to smoking what if one occasionally smokes once had a drink. Would one be classed as a smoker?

Yes, one would.

dunstonh

From the article my guess is I should opt for a level term policy for 16yrs (ie. till my Son finishes compulsory education) and opt for an amount 10 times my income.

Age 16 is typically lower than you would normally use for children. Age 23 is more likely as its not the time in education that matters. Its how long they are likely to be dependent upon you.

Why 10 times? I know that Martin's article says that but thats one of those ballpark figures designed to give you an idea of the amount you should look at. Usuaully a proper analysis including things like pensions and reduced expenditure and costs will come out with a different figure. Also, the 10x sales rep guide that Martin uses is in addition to debts.

Is a level term really what I need/want?

Possibly. Although not for the mortgage unless its interest only. If you are on a budget then you could also consider family income benefit which is usually cheaper than level term assurance.

Will my mrs benefit or my Son?

Depends on how you write the policy. i.e. if you place it in trust or not.

Can I choose?

yes.

With respect to smoking what if one occasionally smokes once had a drink. Would one be classed as a smoker?

You are a smoker.

Gareth83

okay thanks for your info. So is best using Cavendish for a quote then see if there is cashback via quidco and go direct if it's cheaper per month?

I don't have a pension as yet, mortgage is repayment but over 30yrs not the usual 25yrs. What cover would I need for that?

I have no debts aside from a few 0% credit cards ~£5000 and a student loan ~£10,000

So this family income benefit, how do I go about this? Is there an article for that? If I did use the 10x income ballpark figure +debts should I then subtract any 'death in service' payments?

Thanks

dunstonh

okay thanks for your info. So is best using Cavendish for a quote then see if there is cashback via quidco and go direct if it's cheaper per month?

Up to you.

I don't have a pension as yet, mortgage is repayment but over 30yrs not the usual 25yrs. What cover would I need for that?

You match the mortgage term. So, 30 years.

So this family income benefit, how do I go about this? Is there an article for that?

Martin's articles tend to be basic and limited to certain scenarios. There are over 13 different types of life assurance but I believe his article only covers level term (and perhaps decreasing term for mortgages). I don't believe he even mentions family income benefit.

If I did use the 10x income ballpark figure +debts should I then subtract any 'death in service' payments?

Most death in service payments are linked in with the pension. You tend to find you dont get the DIS unless you are in the pension scheme. There are some exceptions to that and you may be one of those. However, you ought to check.

property.advert

It worries me that people are looking to cashback sites when buying life assurance. With places like Cavendish, you are still paying L&G direct (phone them to check if you want) and for me, it is about 1/3rd cheaper and far more of a saving than some rather pointless £50 bung up front.

A one year low amount policy can potentially work out better with a cashback but the vast majority of people need far longer policies than 1 year.

Gareth83

yeah but obviously I can change in a year if I find a better deal that offers cash back again?

Dunston, do you suggest I see an IFA then? I want to secure my son's future but thought Martin's article seemed the best way under my circumstances. Now it gets even more confusing...

dunstonh

Dunston, do you suggest I see an IFA then?

Basically, your choice is to DIY or IFA. You can rule out banks and insurance companies as they are expensive and tied or work on a sales process.

If you can DIY and get it right and dont mind not having whole of market access, then DIY can save you money. However, like any area of DIY, if you get it wrong then it can end up costing you more in money. So, you need to decide your competence level on getting it right or not. If you dont want to DIY then use an IFA. The premiums will be a little higher (or you can go fee based and get cheaper premiums) but it should be done correctly (and if not, you get consumer protection against bad advice).