i need life insurance but dont know where to start!

crispeater

can anyone help?

i've decided i need to make a will but before that i need to get some life insurance so that if anything happens my children can be well looked after, but i really dont know where to start. i dont have a mortgage i part own and part rent my current property and the bit i own i own outright

can anyone offer any advise of where to start off looking? i feel like a lost kitten lol but not so fluffy

dunstonh

Do you want level term, family income benefit or whole of life?

if its for the children you should also look to place the life assurance in trust so inheritance tax is avoided. Plus it also means they get the money and not some lost relative.

You need to work out how much you need, how long the need will exist for and then you match the type of policy to that need and your budget. Then you go find the right provider and the right trust.

The cheapest option is typically a family income benefit policy but it may or may not be the most suitable. Next comes level term assurance where you would typically look at a using a lump sum that could provide an income at 5% to cover costs plus any liabilities or expenditure required on top. e.g.

crispeater

oh dear now im even more confused lol
i think i want for whole of life if thats possible, i would like the money put into trust and so much released every month or so to my sister who will be caring for my children (if she hasnt gone before me! lol)
are there any companys i should avoid at all?

dunstonh

i think i want for whole of life if thats possible, i would like the money put into trust and so much released every month or so to my sister who will be caring for my children (if she hasnt gone before me! lol)

Family Income Benefit is closer to that goal then if you want an all-in-one solution then. I doubt whole of life assurance is required as the need is likely to stop once the youngest child is aged 25. (used to considered 18 then 21 but children are staying at home longer).

crispeater

thank you for this it has helped a lot.. now next question is, wheres the best place to go or does it not matter?

dunstonh

Most insurance providers are very similar and you can look at cost. Some have built in options which others dont (different coverage on war and acts of terrrorism, ability to amend policy, payout if children die, guaranteed insurability on future contracts etc) but the main "life cover" issue is the same with all.

If you are going down the DIY route, then Cavendish is probably the cheapest discount IFA to get it from. If you want advice, then an IFA can do it but the monthly premium will be a little higher to cover the cost and liability of giving advice.