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    • Brad2708
    • By Brad2708 28th Jun 18, 1:27 PM
    • 2Posts
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    Brad2708
    Life Insurance for a 17 year old
    • #1
    • 28th Jun 18, 1:27 PM
    Life Insurance for a 17 year old 28th Jun 18 at 1:27 PM
    Okay so I've just been accepted for life insurance and yeah I'm 17 (2 months away from being 18) but I was wondering how it works? I was told that some companies take on 17 year olds (The company I'm with) but I was reading online and if they take a monthly payment it's classed as some sort of loan and it goes on a credit report? I was wondering if this is true and if it is, is it possible to get access to my credit report..?
Page 1
    • dunstonh
    • By dunstonh 28th Jun 18, 1:42 PM
    • 97,636 Posts
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    dunstonh
    • #2
    • 28th Jun 18, 1:42 PM
    • #2
    • 28th Jun 18, 1:42 PM
    Life assurance premiums do not fall under the consumer credit act and are not loans.

    Some insurance does. Such as if you pay house or car insurance monthly (you are borrowing the annual premium and paying it back under a credit agreement).

    Why have you bought life assurance? Not many 17 year olds are going to have the financial need for life assurance?
    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.
    • Brad2708
    • By Brad2708 28th Jun 18, 1:51 PM
    • 2 Posts
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    Brad2708
    • #3
    • 28th Jun 18, 1:51 PM
    • #3
    • 28th Jun 18, 1:51 PM
    Life assurance premiums do not fall under the consumer credit act and are not loans.

    Some insurance does. Such as if you pay house or car insurance monthly (you are borrowing the annual premium and paying it back under a credit agreement).

    Why have you bought life assurance? Not many 17 year olds are going to have the financial need for life assurance?
    Originally posted by dunstonh
    I bought it because I want to be prepared for what happens in the future, I might be healthy now but who knows several years down the line something could happen. Also I just want to get my life sorted out now, I've got my job, insurance I just want my future to have no complications. So I'm planning ahead.
    • kuratowski
    • By kuratowski 28th Jun 18, 3:07 PM
    • 107 Posts
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    kuratowski
    • #4
    • 28th Jun 18, 3:07 PM
    • #4
    • 28th Jun 18, 3:07 PM
    It's sensible to plan ahead, but maybe life insurance isn't the product you're likely to need most right now.

    Most people get life insurance to meet a specific need - for example to provide for a spouse/partner and/or kids in the unfortunate event that they die. Typically for instance your solicitor would recommend you to take out life insurance to cover a mortgage when purchasing a property. Not sure whether these circumstances apply to you. If you have no debts and no dependants, who will benefit from the insurance and why do they need it?

    But in the spirit of thinking ahead, there are some other things you could look into: are you paying into a pension scheme? The younger you start, the better. Be aware that the mandatory minimum contribution rates aren't enough to provide for a decent retirement, you should look to pay more than the minimum. Also, there are are things like ISAs and LISAs, which can help you to save for events in your future which are likely to come sooner than death or retirement, such as buying a car, marriage or buying a property.
    • dunstonh
    • By dunstonh 28th Jun 18, 3:31 PM
    • 97,636 Posts
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    dunstonh
    • #5
    • 28th Jun 18, 3:31 PM
    • #5
    • 28th Jun 18, 3:31 PM
    I bought it because I want to be prepared for what happens in the future, I might be healthy now but who knows several years down the line something could happen.
    And what are you going to do when you find out the sum assured you have now or the term you have bought it for doesn't match your financial needs and you have to cancel it and buy something different?

    I've got my job, insurance I just want my future to have no complications. So I'm planning ahead.
    How are the more important things?
    Retirement planning, income protection, Critical illness cover, short and medium term saving/investing?

    Its great you are looking at these things. However, perhaps the outcome is not ideal for you.
    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.
    • macman
    • By macman 28th Jun 18, 4:38 PM
    • 43,152 Posts
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    macman
    • #6
    • 28th Jun 18, 4:38 PM
    • #6
    • 28th Jun 18, 4:38 PM
    Admirable though it is that you are planning ahead at 17, life insurance does not cover illness. It simply provides a lump sum payment for your dependants upon your death. At 17, unless you are married, have children, or are a carer, you don't have any dependants. As above, you would be better off with a more suitable product.
    It's not credit, as you are not borrowing money-you are simply paying a monthly premium until death, or until you cancel it.
    No free lunch, and no free laptop
    • csgohan4
    • By csgohan4 28th Jun 18, 7:52 PM
    • 5,629 Posts
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    csgohan4
    • #7
    • 28th Jun 18, 7:52 PM
    • #7
    • 28th Jun 18, 7:52 PM
    to be fair it's cheaper the younger you are, but of course you will be contributing longer via premiums
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • ThePants999
    • By ThePants999 28th Jun 18, 9:39 PM
    • 1,480 Posts
    • 1,915 Thanks
    ThePants999
    • #8
    • 28th Jun 18, 9:39 PM
    • #8
    • 28th Jun 18, 9:39 PM
    Who is it that needs financial protection in the case of your death? That being what life insurance is for.
    • Kynthia
    • By Kynthia 28th Jun 18, 11:20 PM
    • 5,469 Posts
    • 7,661 Thanks
    Kynthia
    • #9
    • 28th Jun 18, 11:20 PM
    • #9
    • 28th Jun 18, 11:20 PM
    It's good you are trying to be organised. However who is it that will need money if you die? There's not many 17 year olds who have anyone depending on them financially and will be in need of funds if they were gone. Unless you're just doing this to cover your funeral costs because your estate won't have the funds to pay for it?

    A pension is definitely a good idea, as I've been told the contributions you make in your 20s have time to compound and make a big impact on your final pot. One study showed 10 years of pension contributions up to your mid 30s resulted in a bigger pot than 30 years of saving from mid 30s.

    Then there's house deposit, LISA, PHI. Etc.
    Don't listen to me, I'm no expert!
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