Level Term Assurance Discussion

mutley74

I was not really looking for specific advise, but more any general info/help on is worth adding kids to policies, and does one know any providers that do this.

Also, is it true that different companies cover vastly different critical illnesses? How can I work out which are companies that cover one more comprehensively that others?

What do people think of waiver of premiums on a policy? Is it worth paying more for this or is it down to personal satisfaction and what one can afford?

(I am more after general feedback, experience of others – at the end of the day I will make my own choice on what I feel is best. When I have done that I will try and share my experience with other if I can).

dunstonh

I was not really looking for specific advise, but more any general info/help on is worth adding kids to policies, and does one know any providers that do this.

If you mean in the form of a trust, then potentially yes it can be. It can also be a waste of time in some circumstances and cause more problems.

If you mean in the form of insuring their life, then why? You insure a lost income or debt. How much money does your child earn you?

You will not get trust advice for free.

Also, is it true that different companies cover vastly different critical illnesses? How can I work out which are companies that cover one more comprehensively that others?

Vastly is too strong a word but yes, companies do differ in their terms and level of cover with regards to critical illness.

To find out you could pay for a years subscription to Defaqto or synatics, costing you around £1200. Or you could ask an IFA. Or you could go direct to each insurance company and ask them although many wont deal direct and may not give you a response. The best one is also one of the most expensive.

Do you want to pay more for something that DOES cover you or pay less for something that might under certain circumstances?

What do people think of waiver of premiums on a policy? Is it worth paying more for this or is it down to personal satisfaction and what one can afford?

official hat on: superb, excellent, must have
official hat off: !!!!!!

Nah, to be honest it depends on the amounts involved and how important what you are covering is to you. It would also depend on any other income protection that is already in place. How important is it to you that the premiums are still in place after six months if you have a long term illness?

(I am more after general feedback, experience of others – at the end of the day I will make my own choice on what I feel is best. When I have done that I will try and share my experience with other if I can).

Terminal illness is included in most modern plans nowadays at no extra cost although there are a few where it isnt.

Just realised i answered a lot of your questions with questions but it will get you thinking.

mutley74

DD,
cheers for the responses.
I was not looking to insure my kid's life, but i heard that some companies provide cover at 50% insurance cover value for kids free, until they are 18. If its 'free' or worth changing company with little change in premium value, then i see it worth while, as who know if say something happens to our kid. Then may have to take time of work to help out etc..It was just my curiousity to ensur ei leave no stone unturned in my quest to understand this subject.

mutley74

got aquote via a broker for 30 yr cover for myself cost is £48/mth, but by chance tried egg after taking out a credit card, and their life insurance came out at £33, looking at life and CI.

Anyone know any pitfalls (if any) using egg service, or why they could be so much lower priced?

dunstonh

There are two types of premiums available.  Guaranteed and Reviewable.   Guaranteed are more expensive but it does mean that you will never have to worry about the premium changed.  Reviewable means that the premiums can be changed by the insurance company in the future (usually after a period of 3-5 years).   They can usually alter the terms of the cover as well.  This option is cheaper than guaranteed but less desirable.

Also, critical illness can come in two levels (in general), comprehensive and core.   Think full and budget.    In addition to this, the different insurance companies will have differences in the definitions of illness.   Skandia, for example, is very comprehensive but also one of the more expensive.  You can get core, reviewable cover much cheaper.

So whereas Life cover is fairly straight forward with 3 types of premiums, guaranteed, reviewable and annually costed but only covering one event (although terminal illness is free with some providers whilst others dont include it or charge extra), the critical illness options are much much greater.

edit:  Just checked egg's Key features for life and ci and its underwritten by Pru.  The premiums are not guaranteed and can be increased every 5th anniversary.  This is extremely likely looking forward.   It only lists 8 core areas with no additional (one of these is a duplication so its really only 7), so this suggests it is a budget plan. The better plans have around 13 additional areas.

mutley74

DD,

thanks for the comprehensive reply. I had not managed to go through all of Eggs T&Cs yet, but you saved me a job. The 5th year review would explain the low price now.

cheers

mccartrey

???
Hi there,

I have been a subscriber for quite a while but this is my first post. So hello all.

I am 38 and my wife is 28. We have 2 small children aged 8 months and 2.5 years. My wife is a full time housewife and I work full time. My mortgage has 9.5 years to run (£70000 to pay) and I will retire at 65 (probably) which is 27 years away.
My question is this:
I am thinking of purchasing level life cover and probably critical illness cover too.
Should I be covering both our lives until I finish paying the mortgage or until I stop working? Should I cover us both for different amounts and for different periods. Should the critical illness cover run for a different period than the life cover and which one of us needs it?

Can anyone advise? I'm a little confused!

Regards,

McCartrey

dunstonh

???
Hi there,

I have been a subscriber for quite a while but this is my first post. So hello all.

I am 38 and my wife is 28. We have 2 small children aged 8 months and 2.5 years. My wife is a full time housewife and I work full time. My mortgage has 9.5 years to run (£70000 to pay) and I will retire at 65 (probably) which is 27 years away.
My question is this:
I am thinking of purchasing level life cover and probably critical illness cover too.
Should I be covering both our lives until I finish paying the mortgage or until I stop working? Should I cover us both for different amounts and for different periods. Should the critical illness cover run for a different period than the life cover and which one of us needs it?

Can anyone advise? I'm a little confused!

Regards,

McCartrey

You probably need two plans. One to cover the mortage requirement and one for the family commitment. However, depending on your budget and willingness to fully cover your needs, you may find one plan is preferable by taking the view that as the mortgage balance decreases and is repaid, the additional life cover can be used for additional family protection.

Flower_Power_5

Please can some one help, I am 31 and married with a young child. I recently paid off my mortgage and consequently looking to switch my life assurance from a reduced term to a level term policy with CIC or IP. My husband has just thrown a curve ball into the equation and suggested that I get an endowment policy as this provides life cover and you get your money back at the end with the potential to get a bit more. I want to cover myself for £250,000 - apart from the cost differential that there may be in monthly payments - (I am yet to investigate endowments) are there any other obvious reasons why an endowment wouldn't offer me the solution I am after?

dunstonh

Please can some one help, I am 31 and married with a young child.  I recently paid off my mortgage and consequently looking to switch my life assurance from a reduced term to a level term policy with CIC or IP.  My husband has just thrown a curve ball into the equation and suggested that I get an endowment policy as this provides life cover and you get your money back at the end with the potential to get a bit more.  I want to cover myself for £250,000 - apart from the cost differential that there may be in monthly payments - (I am yet to investigate endowments) are there any other obvious reasons why an endowment wouldn't offer me the solution I am after?

Dont even go there.