Good price for life insurance?

parking_question_chap

Hiya

What would be a good price to pay for life insurance?

A joint policy to pay off the £135k mortgage and also leaving a lump sum of around £35k or so.

Also will critical illness cover make this loads more expensive?

Any advice would be great.

We are both 28 and would like a long policy starting soon.

InsideInsurance

Get quotes from either an IFA or protection broker.

In my experience CI cover is much more expensive than Life, in fact adding life to CI is often basically free or pennies more.

Everyones circumstances are different and my pre-existing conditions may have affected CI more than Life but for me CI was 6 times the price of Life with the same terms/ values

parking_question_chap

Thanks for the reply.

What is the main difference?

From what I gather Life insurance seems to be a payout for sudden death from an accident or similar, and critical illness is if you contract something serious and cannot work so need a payout.

If you die from a "critical illness" will you get a payout from a standard life insurance policy? just not get a payout upon discovery of the illness?

Blimey this is depressing stuff.....

ACG

Life insurance pays out if you die - simple as.
Critical illness pays out if you get one of the critical illnesses listed on the policy.
There is also PHI (also known as income protection, this pays out if you are unable to work due to any illness - ie there is not a list of defined illnesses it will cover). This pays out a monthly benefit rather than a lump sum.

I would suggest speaking to a broker though. Your questions are very basic (nothing wrong with that) and making a mistake at this stage could cost you/your family a lot down the line.

InsideInsurance

parking_question_chap wrote: »

From what I gather Life insurance seems to be a payout for sudden death from an accident or similar, and critical illness is if you contract something serious and cannot work so need a payout.

If you die from a "critical illness" will you get a payout from a standard life insurance policy? just not get a payout upon discovery of the illness?

Life pays out on death, sudden or otherwise, and some will also pay out on a terminal diagnosis with less than 1 year to live. Its basically there to protect your dependents from losing your income/ give them an easier life/ pay for your funeral etc

Critical Illness pays out on diagnosis of one of a number of named illnesses at the required severity. Technically it doesnt actually need to stop you working but in practice most would. If you develop an illness that isnt on the CI insurers list then you dont get a payout even if it does stop you working. It is arguable what CI really is for, rarely is the monies involved sufficient to cover all loss of earnings for the rest of your life and the selling point is often around enabling you to change your lifestyle and if needs be adapt your home (eg if you are now wheelchair bound)

There is a third class of insurance which ACG mentioned, PHI (permanent health insurance) which pays out a regular amount whilst you are too ill to work until a predefined date, normally your 65th birthday. This is a true income replacement but doesnt have that lump sum element of CI to allow for home adaptations or going on a 3 month holiday to refind yourself after cancer etc.

They are probably roughly in the order of cost assuming you are talking relatively equal policy lengths and proportional sums insured

kingstreet

M29NB NS, F29NB NS both admin jobs.

Decreasing joint mortgage life cover £135k, 25Y = £9 to £10 pm

Decreasing joint mortgage life and critical illness cover £135k, 25Y = £34 to £39 pm

Level joint life cover £35k, 25Y = £5 to £8 per month

Level joint life and critical illness cover £35k, 25Y = £14 to £19 pm

Single income protection, own occupation, £1,000 per month, payable after three months deferred period, to age 65 = £16 to £23 pm.

All premiums guaranteed, not reviewable/renewable.

An indpendent broker would be your best bet for the right cover for your needs at the right price.

InsideInsurance

kingstreet wrote: »

M29NB NS, F29NB NS both admin jobs

Male, 29 years old, non smoker
Female, 29 years old, non smoker

What is NB? I'm guessing not neutral buoyancy

kingstreet

Next birthday.

InsideInsurance

kingstreet wrote: »

Next birthday.

So you're saying you dont have a tank of water to see if they float or sink? Do you really want to risk insuring witches?