Life Insurance Discussion

dunstonh

Does anyone know of any reputable broker or co offering this assurance?

Any IFA.

Its a higher regulated product (falls under investment class) and its generally low profit and often paper based application. So you tend to find its coverage on the internet is weak as the internet sites like to cherry pick the easy stuff.

Willman_Rodders

Also: could we take out level term (interest only mortgage 20 years) and then renew it if and when the mortgage comes to term? We would like protection for longer than the mortgage as for various good reasons we have no pension to rely on either should one of us die.

As an ex-IFA ...

Yes, you may find a life assurance company that will offer level term for 20 years, and at the expiry of the term alloy you to renew policy for a further term; but as this is in effect committing the life company to protecting your life for longer than 20 years your initial premiums [on the first 20 years] will be higher than a comparable policy that does not allow any automatic extension of cover.

An alternative would be to take out cover now, and at the expiry of the term then take out a completly new policy. The risk here is if you are diagnosed with a life threatening illness in the interim 20 years period you may find that the new cover at the expiry of the 20 year term is impossible, or very, very expensive.

You could take out two policies now; one to cover the mortgage for 20 years (say level term), and a whole of life policy to provide additional cover both in the short term, and longer term. But there are many other options.

As Dunstonh says, it's probably best to see an IFA who will explore all your options and needs.

HTH

MPlant

MPlant wrote: »

Myself and my partner have bought a flat in May and would like to take out a Life Insurance cover, so that is something was to happen to one of us the mortgage would be paid.

In May I did an online quote with Post Office (actually Norwich Union) and everything was okay up until the point where they asked us if we had ever take recreational drugs or had mental health problems.

Both of us have used drugs infrequently at various times in our lives, but we now have a no drugs policy and haven't used drugs for over a year. I am also not proud to say that I [stupidly] took an overdose in 2004 whilst in a past turbulent relationship. I have no history of mental health problems and the incident was a one off thing that helped me shape my life for the better.

On the basis of the above we were turned down Life Insurance. We'd really like to take out a policy, but we're unsure of where to look now...

Can anyone help?

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:

MPlant

Can anyone help?!

needtosavemonies

greetings all. this is my first post so be gentle. im sure you remember yours!!

i am thinking of getting seperate 35year polices for both my wife and myself costing £15 and £20 respectively for 500,000 cover. we are both in our late twenties and have recently brought a house ~300k.

i have noticed that a number of forums/sites recommend that the polices be placed in trust. because i am thinking of the future i was wondering whether in was possible to put a unborn child/children in this trust. at present if something happened to either one of us, the other would be recieve the payout through the trust. but it occured that if anything happened to both of us simtaneously then what would happen. also i hear that once a trust is setup it can be difficult to change and this is why i wish to consider future oppspring now while my premiums are relatively inexpensive.

thanks in advance for your contributions.

dunstonh

needtosavemonies wrote: »

greetings all. this is my first post so be gentle. im sure you remember yours!!

i am thinking of getting seperate 35year polices for both my wife and myself costing £15 and £20 respectively for 500,000 cover. we are both in our late twenties and have recently brought a house ~300k.

i have noticed that a number of forums/sites recommend that the polices be placed in trust. because i am thinking of the future i was wondering whether in was possible to put a unborn child/children in this trust. at present if something happened to either one of us, the other would be recieve the payout through the trust. but it occured that if anything happened to both of us simtaneously then what would happen. also i hear that once a trust is setup it can be difficult to change and this is why i wish to consider future oppspring now while my premiums are relatively inexpensive.

thanks in advance for your contributions.

Why are you setting up 2x£500k when you have two different needs with probably two different terms of cover and creating potential for an IHT liability as well as costing your more than needed?

Some trusts are flexible, some absolute. You would need to use the right trust. Your needs suggest that one should be in trust but not the other.

k9pat

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.

dunstonh

does anyone now if this is a gd policy

You havent told us who its with, what version of the product it is (different distribution channels can have different versions of product from the same provider), what level of cover you have with all these, your age, occupation etc etc.

needtosavemonies

dunstonh wrote: »

Why are you setting up 2x£500k when you have two different needs with probably two different terms of cover and creating potential for an IHT liability as well as costing your more than needed?

Some trusts are flexible, some absolute. You would need to use the right trust. Your needs suggest that one should be in trust but not the other.

1. why would our needs be different? ideally we would like to leave as much possible to surviving spouse and/or child if both passed over. both terms are fixed and guranteed. i thought that was the whole point of 'in trust' so IHT can be avoided.

2. wouldn't both policies be in different trust. at what point did i suggest our needs were different .
husband dies = wife recieves trust
wife dies= husband recieves
both die= child recieves (regardless of what trust is used, can a unborn child be a recipient)

thanks

dunstonh

1. why would our needs be different? ideally we would like to leave as much possible to surviving spouse and/or child if both passed over. both terms are fixed and guranteed. i thought that was the whole point of 'in trust' so IHT can be avoided.

You have a mortgage protection need and a family protection need. Does the mortgage need run out at the same time as the family need? What happens in future when you move and need to change the mortgage protection? What happens to the surviving partner when the proceeds on the life assurance are paid to the benefit of the children and are not made available to repay the mortgage?

(btw, I know the answers to these but trying to make you think about what you are doing and why it is not right)

2. wouldn't both policies be in different trust. at what point did i suggest our needs were different .

You are mixing up what I mean by different needs. One is to clear debt and the other is family protection. To do this effectively you would typically need 2 or 3 policies/segments.

husband dies = wife recieves trust
wife dies= husband recieves

No point putting it in trust then as there is no liability between spouses.

both die= child recieves (regardless of what trust is used, can a unborn child be a recipient)

But subject to IHT potentially as life assurance amount and property and other assets could/would put it into IHT consideration.

You dont put the trust with the spouse as the beneficiary with family protection. You put the children as beneficiaries.