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  • FIRST POST
    • Former MSE Wendy
    • By Former MSE Wendy 1st Oct 10, 12:20 PM
    • 868Posts
    • 1,782Thanks
    Former MSE Wendy
    Level Term Life Insurance Guide Discussion
    • #1
    • 1st Oct 10, 12:20 PM
    Level Term Life Insurance Guide Discussion 1st Oct 10 at 12:20 PM
    This thread is to discuss the Level Term Life Insurance guide.

    Click reply to discuss.
    Last edited by Former MSE Wendy; 05-10-2010 at 8:26 PM.
Page 23
    • BarnyRead
    • By BarnyRead 14th Oct 18, 1:45 PM
    • 1 Posts
    • 0 Thanks
    BarnyRead
    Hi all,

    I知 after a bit of life insurance advice. I知 a British citizen but live abroad. Is it possible to still get life insurance in the U.K. or do I need to be a current resident to do so?

    Really appreciate any help.

    Thanks.
    • Bmister
    • By Bmister 23rd Jan 19, 1:37 PM
    • 1 Posts
    • 0 Thanks
    Bmister
    Lifestyle Review
    I知 new to the forum and therefore apologies if I am not using it correctly.

    I was hoping to see if anyone had advice on the potential for lifestyle reviews by insurance for a life assurance product.
    In brief, we mortgaged when I was pregnant, and my premium increased by 」5.00 per month after, my Gp and not the insurance company, informed me that is due to slightly high cholesterol level.
    Due to clear statistical evidence of cholesterol being higher in pregnancy and now seeking to demonstrate its lower, I知 told I知 not entitled to a lifestyle review due to my age (41) which seems a bit harsh, especially as I was pregnant at the time of assessment.
    Any advice of where I could seek further advice or other similar experiences would be very much appreciated

    Kind regards
    • dunstonh
    • By dunstonh 23rd Jan 19, 1:51 PM
    • 98,579 Posts
    • 67,062 Thanks
    dunstonh
    Any advice of where I could seek further advice or other similar experiences would be very much appreciated
    Life assurance is arranged as a snapshot of your health at the point of application. If you believe this is no longer an issue then apply for a new policy.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Weighty1
    • By Weighty1 23rd Jan 19, 2:19 PM
    • 676 Posts
    • 345 Thanks
    Weighty1
    I知 new to the forum and therefore apologies if I am not using it correctly.

    I was hoping to see if anyone had advice on the potential for lifestyle reviews by insurance for a life assurance product.
    In brief, we mortgaged when I was pregnant, and my premium increased by 」5.00 per month after, my Gp and not the insurance company, informed me that is due to slightly high cholesterol level.
    Due to clear statistical evidence of cholesterol being higher in pregnancy and now seeking to demonstrate its lower, I知 told I知 not entitled to a lifestyle review due to my age (41) which seems a bit harsh, especially as I was pregnant at the time of assessment.
    Any advice of where I could seek further advice or other similar experiences would be very much appreciated

    Kind regards
    Originally posted by Bmister
    Most insurance companies DON'T offer lifestyle reviews on their plans. As mentioned above, they take a snapshot of your circumstances when you apply and the terms offered are normally guaranteed for the full duration of the plan. This works both for and against the insurer. For example, people's whose health improves still pay a higher premium but are a lower risk but those whose health deteriorates still pay the same premium and aren't penalised.

    All you need to do is reapply to either the same or an alternative insurer and your circumstances will be looked at at the date of application and taken from there.
    • kingstreet
    • By kingstreet 23rd Jan 19, 3:26 PM
    • 35,774 Posts
    • 19,580 Thanks
    kingstreet
    ... and be careful not to cancel the old one until you have acceptance terms and have commenced cover on the new one!
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Snowee
    • By Snowee 7th Mar 19, 7:33 PM
    • 1 Posts
    • 0 Thanks
    Snowee
    Mrs
    We had an interest only mortgage. Took out a stocks and shares ISA , included in the monthly premium to be invested was life insurance with critical care cover. The monthly investment amount planned to pay our mortgage at the end of the period would never go up, however, the life insurance went up eating into the monthly amount invested. Eventually we were paying a lot into the life insurance and not much of the monthly investment i.e. the investment that was supposed to pay off the mortgage at the end of the term had no chance because most of it was been eaten by the insurance which kept on going up buying less shares. We waited until the FTSE 100 started to rise then we had to cash it in as there was not enough money being invested.
    We were sold the insurance and never told it would go up eating into the amount invested. If the insurance was not attached to the ISA but seperate payment we would have bought more stocks and shares each month, not forced to sell and had a lot more investment. Firstly we should not have been sold a interest only mortgage and secondly we had no chance of the investment paying out when the hidden life insurance was going up every year! Do you think we have a case to claim from the company who sold us this stocks and shares ISA?
    • dunstonh
    • By dunstonh 7th Mar 19, 7:51 PM
    • 98,579 Posts
    • 67,062 Thanks
    dunstonh
    The monthly investment amount planned to pay our mortgage at the end of the period would never go up, however, the life insurance went up eating into the monthly amount invested.
    Were these two different plans or one single payment?

    We were sold the insurance and never told it would go up eating into the amount invested.
    In most cases they dont as the plans were not linked. The way you describe yours does not sound normal.

    secondly we had no chance of the investment paying out when the hidden life insurance was going up every year!
    How was it hidden?

    Do you think we have a case to claim from the company who sold us this stocks and shares ISA?
    How long ago did you sell the investments? You have three years from being reasonably aware of an issue to raise a complaint. After that, the company can bar your complaint with no access to the FOS.

    I am concerned about your description as it doesnt match the generic methods for combined or individual plans.

    It may have been better to start your own thread rather than posting on one unrelated to your scenario.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • utopiah
    • By utopiah 30th Jul 19, 9:43 AM
    • 300 Posts
    • 1,189 Thanks
    utopiah
    Hi I'm after a bit of advice about decreasing mortgage life cover. We have been overpaying our mortgage for 5 years now and now only owe 」3500. We are hoping to clear most of this but leave 」50 on the mortgage so as not to incur early redemption penalty. As it stands our mortgage payments are 」45 per month but so is our life insurance. It seems silly to me to carry on paying this. If one of us dies we would be able to clear mortgage with savings we have about 」10000 or we could easily just pay 」45 per month. So advice cancel or keep life insurance?
    Mortgage free 25/9/2019 8years and 7 months early 😁😁😁
    • SonOf
    • By SonOf 30th Jul 19, 10:39 AM
    • 2,259 Posts
    • 2,585 Thanks
    SonOf
    Hi I'm after a bit of advice about decreasing mortgage life cover. We have been overpaying our mortgage for 5 years now and now only owe 」3500. We are hoping to clear most of this but leave 」50 on the mortgage so as not to incur early redemption penalty. As it stands our mortgage payments are 」45 per month but so is our life insurance. It seems silly to me to carry on paying this. If one of us dies we would be able to clear mortgage with savings we have about 」10000 or we could easily just pay 」45 per month. So advice cancel or keep life insurance?
    Originally posted by utopiah

    Nobody here is going to give you advice. It would be a very dangerous thing to do. They could say stop it and then you suffer a claimable event shortly after.

    We do not know your financial circumstances. However, most people in the UK are under insured for life assurance. So, whilst you may not have a mortgage need any more, there may be other needs you have (salary replacement, reduced pension etc).

    Plus, are you sure about the ERC being avoided if you leave 」50 in? Most lenders charge their ERC against the value of the balance remaining. So, if there 」50 and say your ERC is 2%, then the ERC would be 」1. Hardly worth the effort.
    • utopiah
    • By utopiah 30th Jul 19, 12:20 PM
    • 300 Posts
    • 1,189 Thanks
    utopiah
    Nobody here is going to give you advice. It would be a very dangerous thing to do. They could say stop it and then you suffer a claimable event shortly after.

    We do not know your financial circumstances. However, most people in the UK are under insured for life assurance. So, whilst you may not have a mortgage need any more, there may be other needs you have (salary replacement, reduced pension etc).

    Plus, are you sure about the ERC being avoided if you leave 」50 in? Most lenders charge their ERC against the value of the balance remaining. So, if there 」50 and say your ERC is 2%, then the ERC would be 」1. Hardly worth the effort.
    Originally posted by SonOf
    Hi thank you for your comments. We have a penalty charge if we pay before March 2022. This charge is 」3400 however we can make unlimited over payments as long as we leave something on the mortgage and yes 」1 would be ok. I guess we have to weigh up the risks of stopping mortgage life insurance. We obviously would need some sort of life cover and need to look into this.
    Mortgage free 25/9/2019 8years and 7 months early 😁😁😁
    • lsmh20
    • By lsmh20 20th Dec 19, 1:57 AM
    • 9 Posts
    • 0 Thanks
    lsmh20
    Is it possible to transfer my life insurance policy to another company?
    I took out a policy in 2005 at just over 」25,00 a month for a 」100,000 policy with Direct Line originally. The company changed hands I am not at all happy with the lack of communication and the attitude I get when I ask questions or request information.
    I am covered for terminal illness and accidental death. Will my family only get a pay-out if I only die in either of these two ways?
    Is it possible to transfer my life insurance policy to another company? If so, how do I do this?
    • Weighty1
    • By Weighty1 20th Dec 19, 8:07 AM
    • 676 Posts
    • 345 Thanks
    Weighty1
    Is it possible to transfer my life insurance policy to another company?
    I took out a policy in 2005 at just over 」25,00 a month for a 」100,000 policy with Direct Line originally. The company changed hands I am not at all happy with the lack of communication and the attitude I get when I ask questions or request information.
    I am covered for terminal illness and accidental death. Will my family only get a pay-out if I only die in either of these two ways?
    Is it possible to transfer my life insurance policy to another company? If so, how do I do this?
    Originally posted by lsmh20
    No, you cannot transfer to another company. Your contract is with them.

    Normally, most policies pay out on death or terminal illness with no requirement for the death to be accidental. There are accidental death only policies, however, it doesn't sound like it's one of these are you wouldn't be covered for terminal illness on an accidental death plan.
    • SonOf
    • By SonOf 20th Dec 19, 10:39 AM
    • 2,259 Posts
    • 2,585 Thanks
    SonOf
    I am covered for terminal illness and accidental death.
    Is this a proper life assurance plan? Accidental death is something that isnt normally mentioned unless it is not a proper life assurance. Life assurance covers death regardless of cause. Accidental death is a limitation to only pay out on accidental death.

    Is it possible to transfer my life insurance policy to another company?
    No. But you can apply for a new policy.
    • Weighty1
    • By Weighty1 20th Dec 19, 11:06 AM
    • 676 Posts
    • 345 Thanks
    Weighty1
    Is this a proper life assurance plan? Accidental death is something that isnt normally mentioned unless it is not a proper life assurance. Life assurance covers death regardless of cause. Accidental death is a limitation to only pay out on accidental death.
    Originally posted by SonOf
    It could be that the accidental death element it mentioned in the KFD. L&G's KFD specifically mentions accidental death.
    • GaryDLogue
    • By GaryDLogue 30th Dec 19, 12:04 PM
    • 1 Posts
    • 0 Thanks
    GaryDLogue
    Deciding on the best policy for my needs.
    Hi, I'm new to the forum and this is my first post. I'm 30 years old married and our first baby is due next week. We plan on having 2-3 in total.

    I have 」150k left on my mortgage to be paid in the next 24 years but I overpay on the mortgage and plan to pay it off in the next 10 years. I have about 」10k debt being paid off on 0% card for the next 2 years. I'd like to give each of my children 」20k towards education or first home.

    From the research I've done I prefer the sound of level term in comparison to decreasing term, mainly due to the fact that if I take out a 28 year policy (app when my 3rd child would finish education) and I die in 20 years time then my family will get very little pay out.

    I also think it's a better idea to take out 2 single policies rather than one joint policy, from calculations I've done with Cavendish Online including Critical Illness cover the cost is 」199 for joint and 」220 for 2 x single policies, so an extra 」240 per year for a double pay out.

    So basically what I'm asking is, am I crazy to be taking out a life insurance policy of 」220 per month? Also does anyone have an exact science to how much cover they actually need? There are some calculators out there but most of them are from brokers so I'd imagine they are fixed.

    It seems like a lot of money! However, the decreasing term seems like a waste of money, also doing the policies without critical illness seems like a waste of money as well!

    Many thanks in advance,

    GDL
    • Aretnap
    • By Aretnap 30th Dec 19, 12:47 PM
    • 3,575 Posts
    • 3,194 Thanks
    Aretnap
    From the research I've done I prefer the sound of level term in comparison to decreasing term, mainly due to the fact that if I take out a 28 year policy (app when my 3rd child would finish education) and I die in 20 years time then my family will get very little pay out.
    Originally posted by GaryDLogue
    That's not necessarily a bad thing. Life insurance if there mainly to ensure that if you die prematurely your family will be able to maintain their standard of living without you and your income. They will need a lot more money to do that if you die tomorrow than they will if you die when the mortgage is paid off, your children have nearly finished university and you were a few years away from retirement anyway. If you die in your early 50s I'm sure they'd like to receive a small Lotto win sized payout - but will they actually need it? So a decreasing term policy can actually be a better fit with your actual needs - and it will be considerably cheaper than a level term policy. Certainly it is not a waste of money.

    A third type of policy to consider is Family Income Benefit, which rather than paying out a lump sum on your death would pay out a monthly income (usually set to your monthly salary, or something like it) until a pre-defined date (eg your projected retirement age, the date your last child will be finishing education). Again your family would get more in total if you died next week than in 20 years time, however what they got would be a more accurate reflection of what they'd lost financially by not having you around.

    So basically what I'm asking is, am I crazy to be taking out a life insurance policy of 」220 per month? Also does anyone have an exact science to how much cover they actually need? There are some calculators out there but most of them are from brokers so I'd imagine they are fixed.
    」220/month sounds like a lot for life insurance, or even life+critical illness insurance, but without knowing what your actual needs are or how much cover you're thinking of it's not really possible to say.

    There is no one size fits all way of deciding how much cover you need. Think about your living expenses, what they will be with some kids around, how much you each earn, what extra expenses you might have as single parents (eg extra childcare?), and think about how much extra would be needed.

    It seems like a lot of money! However, the decreasing term seems like a waste of money, also doing the policies without critical illness seems like a waste of money as well!
    We've covered why decreasing term isn't a waste of money. Why do you think life insurance without critical illness cover is a waste of money?

    CI cover will considerably increase the overall cost - and if money is a constraint most people would recommend prioritising permanent health insurance over critical illness cover. CI is a "sexy" policy because it pays out a large headline figure; however if you do the maths, in the event that you are struck down by a disease which prevents you from working for the next 30 years, the 70% of your monthly income that PHI would give you is likely to be worth a lot more than a one off CI payment. Also PHI is much more comprehensive in its coverage. Two of the big reasons that people are unable to work long term are not "dramatic" illnesses like heart attacks and cancer, but "mundane" things like musculoskeletal problems (arthritis, back pain etc) and mental health issues (stress, anxiety, depression). Neither would get you a penny from a CI policy - both would be covered in full by PHI.

    If you do go down the CI route, be aware that unlike life insurance (which pays out if you die, not if you're alive - so one policy is much the same as any other) there are big differences between CI providers in terms of which illnesses are and are not covered. One CI policy is definitely not the same as any other, and the cheapest is not necessarily the best.
    • fullofcold
    • By fullofcold 30th Dec 19, 3:31 PM
    • 53 Posts
    • 6 Thanks
    fullofcold
    I agree with Aretnap.

    Might be a good idea to speak with a Protection Specialist at a mortgage brokers. Most don't charge a fee and will go through a full fact finding process and get you figures that meet your cover and pocket needs.
    • coachman12
    • By coachman12 1st Jan 20, 11:27 PM
    • 15 Posts
    • 1 Thanks
    coachman12
    I was amazed at the figure of 」200 monthly premiums. Of course, I don't know the particular health considerations etc but I know that I applied for 25 years cover in my 60s and the average premium for policies of 」100,000 were and still are, assuming reasonable good health now, about 」30-」40 with companies like Legal&Gen, Vitality and Aviva. I reckon that those sorts of figures are good value.
    • coachman12
    • By coachman12 6th Jan 20, 10:29 PM
    • 15 Posts
    • 1 Thanks
    coachman12
    I very much disagree that level term assurance is an ideal vehicle for funeral costs----it is inappropriate for such small sums. The best option is surely the funeral plans that are so much in vogue these days. And don't overlook the Over 50's plans that require no medical prying or interest at all---some of these policies are ideal for funeral costs.
    • SonOf
    • By SonOf 7th Jan 20, 12:05 AM
    • 2,259 Posts
    • 2,585 Thanks
    SonOf
    I very much disagree that level term assurance is an ideal vehicle for funeral costs----it is inappropriate for such small sums.
    Level term assurance pays out if you die within the defined number of years. It does not pay out if you die outside of that period. Hence why it is not suitable for someone with that objective.

    And don't overlook the Over 50's plans that require no medical prying or interest at all---some of these policies are ideal for funeral costs.
    An option of last resort for many people. Especially those in good health where a proper underwritten whole of life assurance would have a higher sum assured.
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