Help please on life insurance

clpearce

Very new to this. Husband and I need joint insurance.lifesearch and cavendish online said legal and general are best.

I estimated 400,000 over 20 years but really don't have a clue, I could probably survive on less?!

Lifesearch quoted £24.54 and cavendish £18.18. I'd prefer to go with cheaper option but want to make sure iv discussed my medical history and that the policy gets written in trust so not sure what to do. We want it to make sure children are covered. Paying £6 more a month seems a bit silly just to have s middle man

Credit-Crunched

clpearce wrote: »

Very new to this. Husband and I need joint insurance.lifesearch and cavendish online said legal and general are best.

I estimated 400,000 over 20 years but really don't have a clue, I could probably survive on less?!

Lifesearch quoted £24.54 and cavendish £18.18. I'd prefer to go with cheaper option but want to make sure iv discussed my medical history and that the policy gets written in trust so not sure what to do. We want it to make sure children are covered. Paying £6 more a month seems a bit silly just to have s middle man

Is it to repay a mortgage?
Is the mortgage repayment or interest only?
Are the premiums guaranteed?
Is it decreasing or level term?
Does it come with waiver of premium?
Is the sum assured index linked?
Why £400,000?
Why 20 years?
Discretionary trust?
Who are your trustees?
What medical conditions do you have?

These are the exact questions an IFA would ask you, and ensure that your policy is best for you.

I would not just go with the cheapest policy, as inevitably the premiums will be reviewed every 5 years and possible become unaffordable.

These online 'comparison' sites are driven to the cheapest option, visit an IFA is my advice.

Quentin

Credit-Crunched wrote: »

I would not just go with the cheapest policy, as inevitably the premiums will be reviewed every 5 years and possible become unaffordable.....

No.

If you choose a guaranteed policy then the premiums (and the sum insured) don't change.

Credit-Crunched

Quentin wrote: »

No.

If you choose a guaranteed policy then the premiums (and the sum insured) don't change.

That is what I am saying, the cheapest policies are generally reviewable policies.

My point was that by spending a little more each month, you can future proof your premiums, and possibly have the sum assured index linked. £400k may seem enough now, but with inflationary measures eating away at your balance, indexation for family protection is generally recommended.

Quentin

Credit-Crunched wrote: »

That is what I am saying, the cheapest policies are generally reviewable policies.

My point was that by spending a little more each month, you can future proof your premiums, and possibly have the sum assured index linked. £400k may seem enough now, but with inflationary measures eating away at your balance, indexation for family protection is generally recommended.

Your point seems to be use an IFA rather than Cavendish/Discount brokers (who will sell you the same policy cheaper)!

Credit-Crunched

Quentin wrote: »

Your point seems to be use an IFA rather than Cavendish/Discount brokers (who will sell you the same policy cheaper)!

My point is that the OP does not seem to have any idea as to what features they require, even down to the sum assured. So recommending that they speak to someone who could carry out a shortfall needs analysis, is a suitable approach.

clpearce

Sorry I was so vague. We went with £400,000 as approx household salary is £20,000 (to cover bills) and my youngest is 9 months so we were thinking until he is 18 to be covered. As 20 was an option we went with 20 years. It's a level term (hope that's right) not mortgage as we rent. We may need to add cover for that at a later point if we own a property. The cover is to ensure should one or both of us die our children are paid for so to speak. I'd like the money put in trust to avoid inheritance tax and for it to increase with inflation costs. The only negative in my medical background is a bout of depression when I was a child and I received talking therapy up until 4 years ago. Ideally I'd like to pay less as we also need to purchase income protection as I am a housewife and my husband the sole earner who is self employed. The quote was coming in at £50 for both and it's a big stretch to find £600 per annum!