Smartinsurance!!!

samuela66

Hi

Just asking a little advice really, my partner and I want to take out some insurance just incase anything should happen to either one of us the other would not be left short, he has his pension in work, I think I get 4 times his salary should anything happen, I dont have a pension but have prob about the same amount in savings as 4 times his salary, we just wanted a little extra..............I have looked around and find it quite baffling really, but Smartinsurance came on an advert the other day and i went on there website it seems quite simple and we can be covered for 200 or 400 for a reasonable price........about £20 a month, does anyone know of a reason I should not use this company???

many thanks
sam
xx

kingstreet

Covered for what?

£200? £400?

Income protection? Life cover?

Tell us exactly what you think you need and let us try to answer your question based on that.

samuela66

kingstreet wrote: »

Covered for what?

£200? £400?

Income protection? Life cover?

Tell us exactly what you think you need and let us try to answer your question based on that.

Sorry its life insurance.........and thats 200 thou or 400 thou!

kingstreet

Ok.

How did you reach those figures?

How much income would be lost and over what period?

Have you considered the cheapest form of cover, Family Income Benefit, or FIB for short? Instead of using a lump sum, you simply take out an annual income level which would be lost, for the time of the need.

For example, if you wanted to cover the loss of someone whose net income was £2,500 per month, until your youngest child, currently four years old, reaches 21, you take a FIB for £30,000 per annum over a 17 year term.

Although this could pay out £510k in total if the insured dies immediately, it's a lot cheaper than that lump sum because unlike the lump sum, only £30k would be payable if death occurred in the final year, where the lump sum would still pay £510k.

As an example, for a 30 nb non-smoking male, a £510k lum sum level term assurance over 17 years would cost £19.85 per month, while a £30k pa FIB over 17 years would cost £12.57 per month.

samuela66

kingstreet wrote: »

Ok.

How did you reach those figures?

How much income would be lost and over what period?

Have you considered the cheapest form of cover, Family Income Benefit, or FIB for short? Instead of using a lump sum, you simply take out an annual income level which would be lost, for the time of the need.

For example, if you wanted to cover the loss of someone whose net income was £2,500 per month, until your youngest child, currently four years old, reaches 21, you take a FIB for £30,000 per annum over a 17 year term.

Although this could pay out £510k in total if the insured dies immediately, it's a lot cheaper than that lump sum because unlike the lump sum, only £30k would be payable if death occurred in the final year, where the lump sum would still pay £510k.

As an example, for a 30 nb non-smoking male, a £510k lum sum level term assurance over 17 years would cost £19.85 per month, while a £30k pa FIB over 17 years would cost £12.57 per month.

Hi Kingstreet,

I honestly just dont understand life insurance:o, we have no children, we just want to make sure the other person is comfortably off should anything happen.
So no children either of us, the house is mortgaged, I am signed for his pension from Jaguar and I have money in the bank from the sale of a house that will go to him (If we haven't spent it)
So would I need FIB if no kids??
Alls I want is a reasonable payment per month that covers us financially.
All the jargon confuses me, thats why I looked at that one, and they came back with £20 a month for both of us and we get 200 thousand if anything happens, it just seems straight forward to me, but I dont want to do the wrong thing:(

thanks
sam

kingstreet

The same logic applies even if you have no children. That was simply an example to illustrate the difference. You could save about 30% by picking a different product.

I'm going to confuse you even more now. If you write lump sum life cover and don't write it in trust, you could create a liability to Inheritance Tax on death which could easily be avoided.

I strongly suggest you consider getting professional advice to establish your needs and how best to address them. You may find you should be considering income protection, rather than more life cover.

Insurancehelp_2

You can get free quotes and assessments with no obligation to buy anything. Many life insurance companies do this so it is wise to look around. You might also be interested in adding critical illness cover to a life insurance policy which pays out a lump sum if you're diagnosed with a serious illness. It also includes terminal illness cover.
You can get a free assessment at Turnkey Life.