Mortgage life assurance discussion

dunstonh

Even so, given the dubious advice that insurance companies have been known to give out in the past, an independent clarification would be good - preferably not from an IFA.

Fine. I hope you find your answers.

payless

markBJ wrote:

. Even so, given the dubious advice that insurance companies have been known to give out in the past, an independent clarification would be good - preferably not from an IFA.

.

Could say unjumble the following:

the feeds hand that you biting

---
IFAs , protection & mortgage advisers ( also goes for holiday consultants, telecoms people etc..) often give their " usually very good" input to these forums , and are in the best position to make comment ... and in most cases ( and certainly in the above thread) I don't think they post for intent to gain business.

Would you prefer a totally lay person to reply?

I would be surprised in Martin would post an article thats goes into any great depth on "trusts"

If you want guaranteed advice on trusts , but not from an IFA suppose you could pay a legal firm.

markBJ

dunstonh wrote:

Fine. I hope you find your answers.

dunstonh

Please accept my apologies for any offence I have caused - I hadn't even noticed your signature saying that you are an IFA yourself until payless commented. Perhaps I should get glasses... :embarasse

My comment:

"Even so, given the dubious advice that insurance companies have been known to give out in the past, an independent clarification would be good - preferably not from an IFA."

was supposed to mean I prefer to ask this community, regardless of whether they are an IFA or layperson, for advice on how to get information on this subject instead of contacting an IFA in a formal capacity. I certainly didn't intend this to convey that your response wasn't welcome.

$17mma

Can anyone explain to me what this is
How it works
What it covers etc thank you.

metalfury

Hi Guys,

I've been reviewing all my finances and generally we've been pretty savvy with everything, the only product I didn't shop around for at the time was my life assurance so I've been reading this forum and the articles with interest.

My partner and I each have an AXA Decreasing term Assurance Plan. It's over 30 years and includes critical illness cover.

Each Plan had an initial sum assured of £68875 (around 1/2 our mortgage) so that if anything happened to one of us 1/2 the mortgage would be paid off. For these plans we are paying £15 per month each.

My mortgage is currently around 135K over approx 26 years. We are both 32 and non smokers.

When I play with Cavendish with our joint details and £67500 (1/2 mortgage) payout I get figures around the £30PM mark, which is pretty much what I'm paying now with AXA. I've left the 'increasing benefit/waiver of premium' options set as 'no' because I didn't understand what they meant!

My question is does £30 a month to pay out 1/2 our mortgage on a decreasing term assurance with critical illness cover sound reasonable, or am I doing something wrong on Cavendish and should I be paying much less? I know Martin's article recommends against the Critical Illness Cover, but I think my partner would want it for peace of mind.

I hope you don't mind me asking this question, and thanks in advance for your answers.

Regards

Rob

dunstonh

Are your current premiums guaranteed or reviewable?

The increasing option and waitver of premium options can both add to the cost so you need to know if you are comparing like for like.

Why are you paying for half the sum assured each rather than a joint life first death policy for the whole amount?

zml

I am looking at changing our life assurance provider. We have been looking at different quotes. My husband was knocked off his scooter last year and since then he has suffered with a slight back pain on an off but nothing major. He has been to the GP but has not received any further treatment other than a bit of physio and some painkillers which he took for 1 week. I think most people suffer from a bad back at some point in their lives. He has had no time off work as a result. What I want to know is; does this need to be mentioned on the application form?

dunstonh

What I want to know is; does this need to be mentioned on the application form?

Yes it does. Anything involving a doctor ought to be declared. Trivial things dont need to be but it is still worth doing so and letting the insurance company decide what is trivial or not.

thehippo_2

So, I had a joint policy with her indoors from Friends Provident which was provided via lifesearch.
Its to cover the mortgage, hence decreasing and due to my health (had a stent put in 5 years ago) the premium was almost £80 a month for a 150k mortgage.
Was contacted last December by LS informing me that they could negotiate a better deal with FP and to complete a new application.
So, after much back and forth with my surgery to obtain medical details etc., and that nothing significant has happened to me in the past 5 years I've been told that my premiums will drop by about £15.

So, how come I can apply for a new policy with a lower premium when I already have a policy? Does this mean that my original policy was over inflated and if so is there anything I can do about it?

Your pearls of wisdom would be welcomed!

dunstonh

So, how come I can apply for a new policy with a lower premium when I already have a policy?

You can have as many policies as you like.

Does this mean that my original policy was over inflated and if so is there anything I can do about it?

No it doesnt and no there is nothing you can do about it.

Prices on life assurance change weekly. You cant complain about something you buy going up or down in price in the future.