Level Term Assurance Discussion

System

Please post your questions, answers or discussion points about level term assurance here.

This relates to the article http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1062326514,64086,

pingu

hi

we have mortgage life and critical illness decreasing insurance
£19.55 to cover £36000.(took out in sep2002 for 25 years but jan this year we remortgaged after the special offer fininsed and mortgage is now for 20 years)

we are looking for level term life insurance and the quote we got through moneysupermarket for £100000 over 20 years each £8.80 male33 and £15.50 female 45 both non smokers and in good health.

£24.30 for £200000(100k each)

is this the cheapest or could i do better?

thanks in advance.

pingu

pingu

posted the above on 8th no reply must be the cheapest quote i got then ::)

payless

Cavendish usually come up cheaper ( as rebate comm to reduice premium) than money s/p - who usually quote standard terms - but Cavendish charge a fee

You may find a broker who would do a discounted rate without a fee, or offer a cashback.


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are you dropping the CiC cover??

pingu

i do want to keep the critical illness so therefore might have to keep mortgage life ins. as premiums are gauranteed,

when i got the quote mentioned above he gave me quick qoute including CiC and it was over £100 mark for both of us.

thats why we are looking for just the cheapest life insurance for as an extra cover.

thanks

payless

Great

So in answer -although the figures quoted are competitive - yes you should be able to beat these from the likes of Cavendish - but no advice, or perhaps even from a broker prepared to offer advice.

System

Can anyone advise me about the differences/advantages/disadvantages between level term assurance and whole of life insurance, I'm getting confused ?

My husband and I have separate whole of life policies that end when we reach 65yrs. An IFA has just advised us he can get cheaper new policies if we pay him £500 upfront, we would recoup the fee after 18 months.

We have two dependent children (11yrs and 14yrs), a mortgage that has 14 yrs to run covered by other policies.

I'm not sure if there are any disadvantages in cancelling an existing policy to take out another policy. I'm also not sure where we should have level term assurance or whole of life insurance.

Thank you for any help given.

payless

My husband and I have separate whole of life policies that end when we reach 65yrs.

Believe the idea of Whole of life is that they last for "whole of life" - ie don't end- although often premiums rise in later years .  Although can't say which would be most suitable , as obviously we don't know enough to make that judgement . The existing plans may have a cash in value.

Is IFA

1. Willing to put advice in writing
2. Is he offering the LTA policies , on no commission terms (lower than standard rates) - hence the fee, or is he expecting to get paid both ways?

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My opinion on advisers (all kinds) you need to feel comfortable with their manner / experience and trust their advice , this includes being able to ask for them to given full reasons for their recommendations, including pro's and con's of each action.

If you don't feel comfortable to ask for these- I would start to ask if that's the right adviser for you (even though he may be right )- but get a second (professional) opinion .

Wealth_Wizard

Jackie

As payless points out a whole of life contract normally runs beyond 65, a lot of people take them out as funeral expense coverage as they set them up until about 85.

A whole of life policy is a regulated policy as it has an investment element within the plan, part of the premium you pay goes into an investment and part of it is used for life cover.

If you are looking to protect your mortgage only the cheapest form of cover for that would be decreasing term assurance altough I must point out that if you was to cancel any existing policies you may have to pay more as you have got older since taking out the original plan.

With regards to the fee of £500 I would be a little hesitant to pay this as the time it takes to setup a whole of life policy does not justify this amount of money.

I would give the Co-Op financial services office a call as they are very cheap when it comes to whole of life and they would not charge you upfront.

Savee2

hello martin,payless and duncan
i'm slightly confused and would be grateful for advice.
from martin's article and this discussion, it appears that
1. level term assurance better than mortgage decreasing term assurance
2. separate policies better than single - give 10% more cover but cost a bit more

Could someone please help me with the following points
1. I did not understand the bit about income protection versus critical illness cover.
2. what should i be looking for when talking to the broker (qualifications, registration etc)
3. payless, i did not understand the bit about what happens when people away from work with back/rsi/stress problems.....are u covered or not?
4. what is execution only broker

thanks in advance