help? need cover?

homealone_2

i took out a 20 year policy 11 yrs ago as a single parent to pay out 100,00k if i were to die within that period so whoever looked after my children (possibly the eldest) would have not been financial ruined. at a cost of £18.50 a month. obviously it did not happen. i am now married and my cildren are aged 25,20 and 16 so not so financially dependant upon me. my husband has no insurance at all and together we now have debts totalling 30k. a financial adviser said he should take out a 10 year policy for a similar amount this time to cover our joint debts for a simlar amount. he found a policy with legal and general for our requirements. at a cost of £20 a month (funds a bit stretched as i am disabled and not earning). the plan was after the 10 years we should both re-think things as policy would end and go for something which would give us some money on retirement and not concentrate too much on the death element. unfortunately i then went in hospital and paperwork was never returned (only realised recently he was not covered and panicked) got back onto them and they gave similar offer until paperwork came through and they then wanted to double premium as he has problems breathing and needs pumps regularly. we now need to get something quickl but at a reasonable rate. they wanted £38 a month. where have you gone and got a good deal? and is this 10 year thing a good idea? surely him looking for another policy being 10 years older will be even harder and more expensive? am so worried that in my panic to get him covered i take out the wrong thing? can someone help me look in the right direction?

dunstonh

where have you gone and got a good deal?

As the premiums have been rated due to health, you are going to get that wherever you go. You are not going to get any published prices as they assume good health. So, even if you see one initially quoting you at £20, it will be increased after underwriting have viewed it.

and is this 10 year thing a good idea?

If 10 years is the period of the need, then yes. If not, then no.

surely him looking for another policy being 10 years older will be even harder and more expensive?

Will there still be a financial need after 10 years? Can you afford to extend the term beyond that?

You say your youngest child is 16 so a 10 year policy certainly ensures the children are all out of your hair and dependent (well, one assumes at 26 or older they would be). So it would be loss of income from spouse that would be the main issue. So, what pension would pay out if spouse dies? What shortfalls are there? How long would that be a problem for? (i.e. 10 years, less, more?)

homealone_2

eldest child is now 25 and as you say youngest will be 26 in ten years so as financial commitments go, yes 10 years would be enough. hopefully after that point we could look into getting some kind of addition to the very small stakeholder pensions we have with employers now. i take on board the health implications would make premiums rise and that would be across the board so are there any companies in particular anyone could recommend, or is it all much of a muchness in which case see you is offering most cashback with quidco? did well with them with lloyds house insurance £160 policy gave a £120 cashback!!

the quote we got was £22 originally for husband for 10 yrs at £100,00 was with legal and general but they then increased it to £33 a month

another question? as stated took mine out 11 years ago. 4 years ago i became disabled with a back problem, should i inform my insurance company?

dunstonh

another question? as stated took mine out 11 years ago. 4 years ago i became disabled with a back problem, should i inform my insurance company?

no need to inform them as long as it wasnt a condition or a related condition to something else that was not disclosed as the point of application (or occured in the short period between application and the policy going in force).