Siobhan-louise wrote: »
Hi, have just been reading up on life assurance and am so confused right now. I am 25 years old and have a partner and two children, my partner already had life assurance so am only looking for myself. I read on the money saving website about brokers and commission and fees and was a bit confused. I went onto One of the sites and it said I paid an admin fee and got the cheapest price available, or I could do the commission based one where they keep a percentage of the commission but use the rest of it to lower the premiums but the premiums a actually more! How is this?? I really have mo idea what kind of assurance I need or how much etc etc so if any one could help I would really appreciate it,
what confuses me is that if I take cover out now for the 35 years until my mortgage ends I have no idea what will happen in my life up until then. If I buy a new house which is worth more money would I need to change life assurance to cover the extra cost. If I have children will I need to change it again to cover their standard of living? How can I predict what will happen in the next 35 years?
How much cover would I need to cover the mortgage, funeral expenses, children, loans.
dunstonh wrote: »
Best not to try and bundle it into one policy. It wont work and you will just end up paying more than you need to.
VJ_ wrote: »
Not necessarily - If you're getting level term life assurance (as I'm doing as part of buying my first flat), the cheapest way seems to be to take it out for as long as possible; my mortgage is only 63,000 over 25 years, but I can get 40 years of £200,000 cover for under £10\month as I'm only 28.
If I get run over tomorrow, that insurance will cover my mortgage, funeral, cremation & any unforeseen costs* with plenty to spare.
Hopefully the same policy will still cover most\all of that in 5\10\15 years time when I'll (hopefully) have a bigger house, family etc. but I'll still only be paying under £10\month.
Why bother with many separate policies that only get more expensive as I get older, when I can have one fixed at a very low rate until I'm 68?
*Currently, my only other debt is my student which is written off at death.
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