Aviva Life Insurance Question

29 Posts

Until recently I was using an IFA but recently have begun to look at some of the products that were recommended and wanted to get some sage advice on here. My question is mainly weighted at the fact that I don't think he took into account insurance I get with my work.
Anyway I'm a 49 year old male and what I pay with Aviva monthly is approx £123 - for this I get roughly 204k of life insurance and the same amount in critical illness. It is broadly in line with the mortgage debt although I have an offset mortgage so the actual balance is 60k less when you take the savings into account.
With my work I get 4x salary in life insurance and also now get income protection which covers 70% of income if off work.
Should I be shopping for a better deal - it's only for myself by the way not my wife.
Anyway I'm a 49 year old male and what I pay with Aviva monthly is approx £123 - for this I get roughly 204k of life insurance and the same amount in critical illness. It is broadly in line with the mortgage debt although I have an offset mortgage so the actual balance is 60k less when you take the savings into account.
With my work I get 4x salary in life insurance and also now get income protection which covers 70% of income if off work.
Should I be shopping for a better deal - it's only for myself by the way not my wife.
Outstanding mortgage Dec 2016 £214,500
Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
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Replies
The income protection is another matter. You can't claim on 2 income protection plans at the same time so if you also have personal cover this could be worth reviewing.
Most people are underinsured when it comes to life assurance. So, its worth remembering that as a starting point.
Death in service is discretionary and people move around jobs more frequently than they used to. So, it's not a reliable source for long term planning.
Plus, Death in service is really meant for short-term loss of income and reduced pension benefits (if you die before building years of service in the pension, there will be a shortfall in spouse retirement provision - this fills that partially).
So, either doing a full analysis including it for its main objectives or leaving it off altogether makes sense.
I would disregard the DIS as others have suggested.
For the Income Protection, this is bit trickier. Do you pay for something you will have come what may or bank on the company policy that could also end up being withdrawn as a benefit... In your shoes, I would probably be thinking the same as you.