Advise for NHS radiologist with no insurance

ridingrodeo

Hi,
I am a 45 year old radiologist with 2 teenage kids.I must admit awkwardly that I have no life insurance. I have paid up my house mortgage and have a bit of cash savings.
a few questions
1. does one use an adviser for life insurance?
2. there are so many options...How does one know what is best?...I am looking at a term policy...
3. I have been reading about companies not paying out
any advise would be welcome...
Roger

Sarastro

I think it depends on what you are trying to achieve? If you have paid off your mortgage and intend leaving the house to your children, they would have somewhere to live - do you want to leave them with a cash sum as well? If so, what for? Living expenses for a couple of years...? Or more than that?

ridingrodeo

Hi,
yes..plan to leave some money for wife and kids to support themselves..dunstonh posted something about ppi and phi policies which were a bit confusing..how does one know what to pick and who to contact for that?
roger

csgohan4

https://www.moneysavingexpert.com/life-insurance/


I would get income protection as well. If you can afford it, get critical illness as well. You can never say never

mclaren32

What cover do you have through the NHS, I would be surprised if you didn’t get some sort of death in service benefit?

PeacefulWaters

ridingrodeo wrote: »

1. does one use an adviser for life insurance?

You can do, but it can be an expensive way to buy. Price comparison sites might be a good starting point.

2. there are so many options...How does one know what is best?...I am looking at a term policy...

You also have questions like how long should a policy last for. I'd suggest estimating when the youngest finishes university and choosing that term.

Critical illness cover might be an option to consider. You'll doubtless report on a lot of patients with unpleasant things inside them and such a cover, either as part of life assurance or separately, will pay out a lump sum if something nasty gets you.

3. I have been reading about companies not paying out
any advise would be welcome...

If you die, you die. They'll pay out unless there's a suicide clause (typically only if you top yourself in the first year or two).

Well over 90% of critical illness claims are paid in full too. Different policies will define different conditions in different ways. So a cheap policy may only cover half a dozen conditions and may exclude certain types of gentler cancer.

I'd suggest you find out how much you're covered for death in service. Two times salary is possible. Work out how much your kids (and their guardians) would need to see them through to the end of university. Suddenly you have a level of cover needed.

Level term or decreasing term? The amount of cover reduces over time with the latter. Cheaper premiums. That said, level term can help overcome the effects of inflation eating into a final payout.

Include critical illness cover? Well if you're stopped from working it might come in handy. But at your age it might be costly cover. It cleared my mortgage this year.

A separate permanent health insurance cover might be a good idea. Guaranteed income if you're off ill for an extended period, payable to planned retirement age. This is currently my primary source of income.

If you do see an adviser, ensure its an independent one. IFA not FA.

ridingrodeo

Yes, the nhs pension covers sick pay till 6 months and some benefits in case of death during service.
Roger

csgohan4

death in benefits is not something you should rely on. Given the government changes the rules all the time especially with the NHS pension.


Get something you know WILL pay out and have read the small print


http://www.pulsetoday.co.uk/your-practice/practice-topics/pensions/family-of-gp-locum-who-died-on-day-off-denied-death-in-service-benefits/20010259.article