Life insurance pointers

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ElvisPresleysCat
ElvisPresleysCat Posts: 106 Forumite
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in Insurance & life assurance
Hi All,

I'm looking for some bullet-point pointers on life insurance. I'm aware of some of the high-level stuff like 'decreasing term' and 'level term' but I was also interested in a lot of the 'gotchas' and things to watch out for and the like. For instance, a claim cannot be made within 12 months or a policy has caveats which neuter the cover until the 12-month marker etc.

I would really appreciate your advice.

Thanks,
Adam.
Thanks,
Adam.

Comments

  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    have a look at the life assurance section of the MSE website it has a good article on it




    https://www.moneysavingexpert.com/life-insurance/
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

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  • Aretnap
    Aretnap Posts: 5,214 Forumite
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    CaPPsiE wrote: »
    For instance, a claim cannot be made within 12 months or a policy has caveats which neuter the cover until the 12-month marker etc.
    Mainstream policies have no such exclusions - other than for suicide, which is often not covered in the first 12 months (so as not to encourage people in financial trouble to think that they can help their families by taking out a big life insurance policy then killing themselves).

    Life insurance is actually quite a simple product. You answer some questions about your medical history, the insurer gives you a price based on the answers (or doesn't if they think you're at too high a risk of dying) and it pays out if you die. There are not generally long lists of exclusions and the only common reason for not paying out (other than you not being dead) is if you didn't answer the questions accurately.

    There are some niche policies (sometimes marketed as "over 50s plans" which ask no questions about your medical history and guarantee to accept you regardless of your health - but don't pay out if you die on the first 12 months ( they may return your premiums instead). That might be what you're thinking of. However such policies are usually poor value compared to a mainstream policies, even for over 50s, and are best regarded as a last resort for people in seriously poor health who can't get mainstream policies.
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    but I was also interested in a lot of the 'gotchas

    There are very few of those with life assurance. It is one of the easiest plans to understand with very few issues (in terms of pure protection).
    For instance, a claim cannot be made within 12 months

    Not on mainstream policies. Are you sure you are looking at sites that are referring to UK and not other countries?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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