Life Insurance
Discussion
Having recently had the arrival of our baby daughter, and the sudden thought that I am now responsible not only for my fiancée, dog, cat and three horses, but now also our 19 week old daughter I have been toying with the idea of life insurance, or some such policy should the worst happen to me.
Do many people “subscribe” top these policies? Assuming having had a quick look on moneysaving expert that you would normally cover yourself for either a fixed amount, or a decreasing amount, for potentially the value of any mortgages etc?
Do people normally do joint names, bearing in mind that I would have childcare and stable hand costs should anything happen to MrsFlashmanChop, is it worth it?
Do people also have a higher amount so that they have a “nest egg” ?
As a summary, we have a joint names mortgage, probably higher than average, and I have a bit of outstanding debt, non-secured. MrsFMP has no debt apart from the joint names mortgage.
I have a number of Buy to Let properties, self-funding.
Sorry for all the questions, just trying to think things through!!
Moneysaving expert gave me quotes for £500k cover, including critical illness cover for c.£25/Month
Do many people “subscribe” top these policies? Assuming having had a quick look on moneysaving expert that you would normally cover yourself for either a fixed amount, or a decreasing amount, for potentially the value of any mortgages etc?
Do people normally do joint names, bearing in mind that I would have childcare and stable hand costs should anything happen to MrsFlashmanChop, is it worth it?
Do people also have a higher amount so that they have a “nest egg” ?
As a summary, we have a joint names mortgage, probably higher than average, and I have a bit of outstanding debt, non-secured. MrsFMP has no debt apart from the joint names mortgage.
I have a number of Buy to Let properties, self-funding.
Sorry for all the questions, just trying to think things through!!
Moneysaving expert gave me quotes for £500k cover, including critical illness cover for c.£25/Month
FlashmanChop said:
Having recently had the arrival of our baby daughter, and the sudden thought that I am now responsible not only for my fiancée, dog, cat and three horses, but now also our 19 week old daughter I have been toying with the idea of life insurance, or some such policy should the worst happen to me.
Do many people “subscribe” top these policies? Assuming having had a quick look on moneysaving expert that you would normally cover yourself for either a fixed amount, or a decreasing amount, for potentially the value of any mortgages etc?
Do people normally do joint names, bearing in mind that I would have childcare and stable hand costs should anything happen to MrsFlashmanChop, is it worth it?
Do people also have a higher amount so that they have a “nest egg” ?
As a summary, we have a joint names mortgage, probably higher than average, and I have a bit of outstanding debt, non-secured. MrsFMP has no debt apart from the joint names mortgage.
I have a number of Buy to Let properties, self-funding.
Sorry for all the questions, just trying to think things through!!
Moneysaving expert gave me quotes for £500k cover, including critical illness cover for c.£25/Month
With regards to Life Insurance, it's always about finding a balance between the cover offered and the premium.Do many people “subscribe” top these policies? Assuming having had a quick look on moneysaving expert that you would normally cover yourself for either a fixed amount, or a decreasing amount, for potentially the value of any mortgages etc?
Do people normally do joint names, bearing in mind that I would have childcare and stable hand costs should anything happen to MrsFlashmanChop, is it worth it?
Do people also have a higher amount so that they have a “nest egg” ?
As a summary, we have a joint names mortgage, probably higher than average, and I have a bit of outstanding debt, non-secured. MrsFMP has no debt apart from the joint names mortgage.
I have a number of Buy to Let properties, self-funding.
Sorry for all the questions, just trying to think things through!!
Moneysaving expert gave me quotes for £500k cover, including critical illness cover for c.£25/Month
First of all, there is no way that the quote you have been given includes Critical Illness cover. £500k of CI would be very expensive and probably 10 times the monthly premium you have stated. I'm sure if you re-look at it, it will state 'Terminal Illness' rather than 'Critical Illness', which are two entirely different things.
Best advice is usually to have two individual policies, one for you and one for your wife. The two premiums may be a few pounds more than a joint policy but you essentially get double the cover of a joint policy Eg if something happened to both of you, and you each had a policy, £500k would be paid out from EACh policy giving a sum of £1m to pay off your debts and leave something for the kids etc.
You will want to consider whether you want a Level Term or Decreasing Term policy. A level term policy will have a constant sum assured where as the decreasing term assurance decreases over the term of the policy. If you want a set amount to be paid out, you'll need a level policy.
With regards to the sum assured thats a personal thing, most people would cover all of the debts as a minimum. Other people I have done policies for have added amounts on top of their debts to ensure their kids futures are protected. Again this will come down to your own personal circumstances, what you want for them Vs the monthly premium and how comfortable you are with that.
I think Sarnie has covered most of it, but it might also be worth considering a family income benefit policy, this would pay an income into your household, should you die. This again can be set up in individual names or joint.
I would recommend you get advice for whatever you decide as money supermarket won't talk to you about trusts etc.
I would recommend you get advice for whatever you decide as money supermarket won't talk to you about trusts etc.
H Guys,
Good info here. One quick question, does the cost of the cover go up on life insurance as we get older?
I've got a critical illness cover that rises each year, however I need to take life insurance out to cover our mortgages.
The cover I'm looking at is to pay a fixed amount not reducing over 25 years at about £60.00 a month if I or my wife dies beforehand. This seems ok, however will it stay at £60 a month until it finishes?
Good info here. One quick question, does the cost of the cover go up on life insurance as we get older?
I've got a critical illness cover that rises each year, however I need to take life insurance out to cover our mortgages.
The cover I'm looking at is to pay a fixed amount not reducing over 25 years at about £60.00 a month if I or my wife dies beforehand. This seems ok, however will it stay at £60 a month until it finishes?
Wozy68 said:
H Guys,
Good info here. One quick question, does the cost of the cover go up on life insurance as we get older?
I've got a critical illness cover that rises each year, however I need to take life insurance out to cover our mortgages.
The cover I'm looking at is to pay a fixed amount not reducing over 25 years at about £60.00 a month if I or my wife dies beforehand. This seems ok, however will it stay at £60 a month until it finishes?
You have mail Good info here. One quick question, does the cost of the cover go up on life insurance as we get older?
I've got a critical illness cover that rises each year, however I need to take life insurance out to cover our mortgages.
The cover I'm looking at is to pay a fixed amount not reducing over 25 years at about £60.00 a month if I or my wife dies beforehand. This seems ok, however will it stay at £60 a month until it finishes?
HI Wozzy,
Some premiums are reviewable and some are guaranteed, I would strongly recommend that you take the later as there are several changes in the life insurance industry later this year, and life/cic cover will never again be as cheap as it is now.
Once again, I would say you need advice!
Some premiums are reviewable and some are guaranteed, I would strongly recommend that you take the later as there are several changes in the life insurance industry later this year, and life/cic cover will never again be as cheap as it is now.
Once again, I would say you need advice!
If you aren't sure how much life insurance you may need in the future take out multiple policies and let individual ones lapse as you feel they become unnecessary.
So for example £250k, £150k and £100k instead of one of £500k. It will be marginally more expensive than one policy of £500k but gives you the flexibility you may need.
My wife and I both have life insurance but for different amounts, she doesn't work but is a full time mother whereas I go to work and bring in a salary so I need to be insured for me than she does.
So for example £250k, £150k and £100k instead of one of £500k. It will be marginally more expensive than one policy of £500k but gives you the flexibility you may need.
My wife and I both have life insurance but for different amounts, she doesn't work but is a full time mother whereas I go to work and bring in a salary so I need to be insured for me than she does.
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