can someone help me with my life insurance please?

Lolliloo

I need some advice please

Our life insurance for me and my partner is £50 per month with Legal and General. With the current economic climate as it is and me being on maternity leave we are really struggling with funds. I have enough to pay all the bills at the end of the month so Im not worried about that but then that leaves me with sod all. We barely get our food shopping each month and just about affford to put petrol in the car.

So I have been shopping around for cheaper deals on stuff. So im looking at our life insurance policies.
Norwich Union quoted us £16 per month which is considerably less. But the cover is less.

At the mo our £50 l&g policy covers life and critical illness. So if one of us dies the mortgage is paid off. If both of us die then the morgage still gets paid off and a second payout for the same amount will go to our son (and daughter when shes born) for him them live on. Critical illness covers a long list of illness so that if one or both of us get critically ill the same applies. Illnesses such as liver failure, kidney failure, alzheimers, degenerative sight loss etc

The Norwich union policy covers less. Its just a payout of the value of our house when we took out the mortgage if one of us dies or gets diagnosed with a terminal illness. So basic but covered none-the-less

Some im stuck with the dilemma of do you ditch your comprehensive policy for a more basic one and when we have found our feet again take out better cover? Or pay the £50 per month and keep the l&g cover?

What would you do?

*MF*

Hi ... this is 100% personal opinion.

With a new baby on the way, and another mouth to feed and body to clothe, I would go even one step further, and consider ONLY a life policy which would clear the mortgage if either of you die.

But repeat - 100% personal opinion.

oramgepekoe

Do either of you get any life insurance through work?

homer_j_3

Lolliloo wrote: »

I need some advice please

Our life insurance for me and my partner is £50 per month with Legal and General. With the current economic climate as it is and me being on maternity leave we are really struggling with funds.

How long do you have left on maternity, will you be able to afford the cover when you return back to work? If so, do you intend to do that at the end of your maternity leave?

I have enough to pay all the bills at the end of the month so Im not worried about that but then that leaves me with sod all. We barely get our food shopping each month and just about affford to put petrol in the car.

Clearly you have to prioritise where the money goes to and depending on what all those bills are, have been reduced as much as possible to try and free up the £50?

So I have been shopping around for cheaper deals on stuff. So im looking at our life insurance policies.
Norwich Union quoted us £16 per month which is considerably less. But the cover is less.

Remember that any quote is done on a "fit and healthy" basis. You have to go through medical underwriting before you will get the true price and it will only be at that point that you will see the true difference in cover. So whatever you decide to do, do not cancel it until you are satisfied with your new cover.

At the mo our £50 l&g policy covers life and critical illness. So if one of us dies the mortgage is paid off. If both of us die then the morgage still gets paid off and a second payout for the same amount will go to our son (and daughter when shes born) for him them live on. Critical illness covers a long list of illness so that if one or both of us get critically ill the same applies. Illnesses such as liver failure, kidney failure, alzheimers, degenerative sight loss etc

Are these on guaranteed premiums or reviewable?

The Norwich union policy covers less. Its just a payout of the value of our house when we took out the mortgage if one of us dies or gets diagnosed with a terminal illness. So basic but covered none-the-less

Critical illness policies have been recently changed so there is standard definitions across all policies. It is almost impossible these days to justify a change of Critical Ilness cover because of this.

Are the premiums with NU reviewable or guaranteed.

Also it would seem as though there is no CI insurance in this quote.

Some im stuck with the dilemma of do you ditch your comprehensive policy for a more basic one and when we have found our feet again take out better cover? Or pay the £50 per month and keep the l&g cover?

What would you do?

The cover is important. I would answer the questions I have asked and the answers from there may help us try and point you in the right direction.

Lolliloo

hi sorry for my late reply!!

My maternity cover ends at the end of Feb 09 so I have another ten months left yet. I dont know if I intend on returning as yet - what with the cost of childcare for two children etc. But if needs a must (paying mortgage etc) I imagine I will return - perhaps on a part time basis.

I have reduced our outgoings as much as humanly possible - so now looking at insurance policies I have etc

I have just signed a declaration with NU to say that the info I have provided is true and accurate - and ive consented to them obtaining our medical records from the gp, so its a case of waiting now to see how much our premiums will actually be in comparison to the quote that was issued to us!

I think the legal and general premiums are reviewable - Im not sure I will have to find out.

The NU are guaranteed throughout the life of the policy I believe! And no there is no CI with the NU policy.


A friend suggested that I cancel the CI cover with l&g to see if that makes a difference to our premiums or not. I think I will ring them and find out if this is possible, and just have life cover.

Or another alternative is to cancel CI and increase the amount of life cover in excess of the value of the house so that the mortgage gets paid if one of us should die, and the other spouse has a bit extra to live by until things right themself.

Its all so confusing. I really wish I had thought more into it when we took out our mortgage. I just trusted that what the mortgage advisor told us was good. Im sure it was but by getting us to opt for the best level of cover I bet his commission reflected that!!