Who to have a life policy with now?

MrUniveristy

Hello,

I recently took out a Critical Illness Policy through my Financial Advisor which was underwritten by Legal & General; Unfortunately the FA rushed this and I wasn’t satisfied with the overall policy & service so I terminated it. I am 20 years old and currently in FT employment earning £18k P/A. I currently have 'death in service pay which is 3x my basic.

I am going to university in September and therefore won’t have any cover - I am going to take out a policy for peace of mind to leave a lump-sum to cover debts & expenses if I pass away unexpectedly.

I would like to sit down with a FA and get this sorted; hopefully tomorrow when I go into town. I will not be going through NBS again; can anyone recommend any places that would suit my needs?

Regards,

MrUniveristy

dunstonh

can anyone recommend any places that would suit my needs?

Don't use an FA if the restriction is in the area of critical illness cover. (i.e. limited provider choice). Either use an FA with no restriction in that area or an IFA.

Most local firms will be able to do this for you with no issue.

MrUniveristy

dunstonh wrote: »

Don't use an FA if the restriction is in the area of critical illness cover. (i.e. limited provider choice). Either use an FA with no restriction in that area or an IFA.

Most local firms will be able to do this for you with no issue.

Like A-Plan Insurance or a high-street bank?

kingstreet

You want just life cover now? No critical illness cover?

At your age and likely sum assured, are you going to need face to face advice?

The likes of the online sites such as Cavendish will give you a choice of providers. Banks, building societies and other tied outlets are the most expensive distributors of protection products and they should be avoided.

Writing the life cover in trust will ensure the benefit is paid quickly and directly to the person you want to receive it, without the need for a will/probate etc.

MrUniveristy

kingstreet wrote: »

You want just life cover now? No critical illness cover?

At your age and likely sum assured, are you going to need face to face advice?

The likes of the online sites such as Cavendish will give you a choice of providers. Banks, building societies and other tied outlets are the most expensive distributors of protection products and they should be avoided.

Writing the life cover in trust will ensure the benefit is paid quickly and directly to the person you want to receive it, without the need for a will/probate etc.

The thing is; Im a little unsure of what I really need. I also smoke occasionally and sinud node disease runs in the family, so this needs to be reviewed?

kingstreet

Smokers pay more and any condition should be disclosed on the application to enable the underwriter to decide if it has any impact on the premiums.

When you get a quote and apply, you are given the "ordinary rates" premium, which assumes you are medically acceptable. Once the application has been considered and any medical evidence obtained, acceptance terms are issued and these confirm the premium, ordinary rates, or more, and any exclusions/endorsements.

You then decide if you want to accept and put the plan into force.

Perhaps you do need face to face advice. IN which case, dunston's suggestion of an IFA would be your best bet. Best cover at the lowest price will be their objective, taking into account your health and other considerations.

dunstonh

Like A-Plan Insurance or a high-street bank?

Banks are the most expensive distribution channels. So, you avoid them. Plus, most are restricted on provider choice and you dont want that.

The provider will depend on what you are looking for and your budget. CI policies are not all the same. So, your budget, needs and opinion have to be considered. There is no one best option for you.

The adviser should ascertain your budget and needs and make an appropriate recommendation.

ACG

My advice would be the same whether you are buying life insurance or UPVC windows. Speak to some advisors, see if you are happy with them.

Hopefully it will be a relationship that will be in place when you get a mortgage etc so it should be someone your happy with and trust.

I would avoid banks and estate agent based brokers - banks are usually more expensive and tied and estate agents do not have the best reputation.

I would personally just do a search on google if friends/family can not recommend anyone.

magpiecottage

It is worth remembering that if you die, then your debts will generally die with you.

In the first instance, any assets you leave can be used to meet the cost of any essential action that needs to be taken such as disposal of your mortal remains (i.e. a basic funeral).

If you take out a policy and it is not in trust, the Student Loans Company and anybody else you owe money will be entitled to the payout.

If it is in trust, it will be deemed not to be an asset of yours and your creditors cannot get hold of it.

That said, my son is due to go off to University this year too and we would prefer him to keep his debts down rather than rack them up in some misconceived belief that we need protecting.

Of course there is a very small risk, but we can live with it.

May you and he both be successful in your studies.