Life Insurance - Tips & Recommendations
Discussion
Now In my mid-thirties and having adult responsibilities beyond ensuring the toilet seat is down I am turning to the matter in the thread title.
May I please draw upon the collective PH wisdom for advice and guidance before I embark on this bold step into the unknown...
Thanks Muchly
May I please draw upon the collective PH wisdom for advice and guidance before I embark on this bold step into the unknown...
Thanks Muchly
Edited by DoubleSix on Friday 21st August 12:29
http://www.moneysavingexpert.com/insurance/cheap-l...
We had the conversation with our financial advisor over this but all he could seem to offer were the same policies I could buy myself from Cavendish Online but at significantly higher premiums. We haven't seen him since
Also consider what cover you may already have and remember that any pensions you might have generally become payable to you beneficiaries tax free in the event of your death. For me that means I already had getting on for £200k in a pension fund and my company pays out 4x salary in the event of my death whilst still employed. These two things combined meant I really didn't need much (or any) additional assurance. Was originally looking at a £500k level term policy before I worked all this out.
We had the conversation with our financial advisor over this but all he could seem to offer were the same policies I could buy myself from Cavendish Online but at significantly higher premiums. We haven't seen him since
Also consider what cover you may already have and remember that any pensions you might have generally become payable to you beneficiaries tax free in the event of your death. For me that means I already had getting on for £200k in a pension fund and my company pays out 4x salary in the event of my death whilst still employed. These two things combined meant I really didn't need much (or any) additional assurance. Was originally looking at a £500k level term policy before I worked all this out.
C0ffin D0dger said:
We had the conversation with our financial advisor over this but all he could seem to offer were the same policies I could buy myself from Cavendish Online but at significantly higher premiums. We haven't seen him since
Not an unusual experience, I fear.My suggestion is a 3-stage process,
1. Sit down and decide exactly what you want to insure. There's no point having life insurance on its own - you are just as likely to be severely disabled by disease or injury and the financial impact is equally devastating on the family, if not worse.
2. Then decide how much cover you need in terms of paying off mortgage (often already in place) and/or other cash to help the family. There's no point "over insuring" because you'll just be wasting money on excessive premiums.
3. Get online and have a good click around. Rates are often favourable in situations where the company can effectively get you to do all the work of filling in forms etc. But make sure you get stuff like medical history, dangerous sports etc absolutely correct.
Be honest on your forms. You do get what you pay for. You may find a life provider who are £1 a month cheaper but insist on a 14 page form being filled out ( all the answers of which may need to be proved if a claim needs to be made ) whereas another may offer cover for fractionally more money, but ask only 4-5 questions when taking out the policy.
It is sooooo cheap I chose to over-insure many years ago (sorry Ozzie) simply because I hoped I would move house, take on a bigger mortgage etc and I wanted to tie in to a youthful rate.
You can do it online very easily. Ensure it is put in Trust for you foc.
Be honest - if you have a ciggie only on a Friday night then you are a Smoker and so you pay the enhanced rate. Otherwise you leave a large debt for your young family as the Insurer refuses to pay out once the cotton bud detects nicotine in your mouth.
Last time I looked there was a point (£400k??) when the Insurer would insist on a medical test as well as gain access to genetic testing?? Not sure if this still stands.
You can do it online very easily. Ensure it is put in Trust for you foc.
Be honest - if you have a ciggie only on a Friday night then you are a Smoker and so you pay the enhanced rate. Otherwise you leave a large debt for your young family as the Insurer refuses to pay out once the cotton bud detects nicotine in your mouth.
Last time I looked there was a point (£400k??) when the Insurer would insist on a medical test as well as gain access to genetic testing?? Not sure if this still stands.
pharmvrs said:
In addition to the above, what happens if your partner becomes ill leaving you the main carer for her plus children and are unable to work due to those duties?
Sarnie will likely advise but just something else to be aware of, I think it's family insurance?
Sarnie will likely advise but just something else to be aware of, I think it's family insurance?
That is a VERY good point, I've insured the wife for a similar amount to me even though she doesn't work, for precisely that reason. If something happened to her I would want to be in a position to take over her role as primary carer for the kids, not have to rely on child minders etc because I had to carry on working.
I agree with the comments about getting it early.
Life is easy to arrange, and cheap as chips for the right person (ie; fit and well, and not a pothead). Consider a blend of lump sum cover and income. Income is cheaper, the lump sum pays off the house, the income gives peace of mind to the survivor.
Serious/Critical Illness Cover is even more vital. When you're dead you're dead, for you the war is over. But if you're crippled and can't work, you still have to pay council tax, eat, drink and pay for stuff. Consider too, Accident Etc cover. If you have a partner and/or kids, write it into trust - the last thing you want is some d
head getting his feet under the table and having access to money that you set aside for the wife and kids.
In terms of underwriting, many carriers are now writing business up to £500,000 without too much fretting. £300,000, certainly a breeze and can go through without a murmur.
Life is easy to arrange, and cheap as chips for the right person (ie; fit and well, and not a pothead). Consider a blend of lump sum cover and income. Income is cheaper, the lump sum pays off the house, the income gives peace of mind to the survivor.
Serious/Critical Illness Cover is even more vital. When you're dead you're dead, for you the war is over. But if you're crippled and can't work, you still have to pay council tax, eat, drink and pay for stuff. Consider too, Accident Etc cover. If you have a partner and/or kids, write it into trust - the last thing you want is some d
head getting his feet under the table and having access to money that you set aside for the wife and kids.In terms of underwriting, many carriers are now writing business up to £500,000 without too much fretting. £300,000, certainly a breeze and can go through without a murmur.
CIC has moved on a heck of a lot, it used to be appallingly restrictive, almost criminally so. The user I end up suggesting for my clients will depend on cost, but also on specific needs. Some, for instance, are far better at covering female conditions, or conditions more likely to be experienced by females. And some are far better at handling specific conditions, such as heart attacks.
Last year, by way of an example, Aviva enhanced its heart attack definition on new critical illness policies, meaning it will now pay out on the diagnosis of a heart attack, regardless of how severe it is. This removes the requirement for a client to have to experience the hassle of proving a specified level of blood troponin simply in order for the claim to be paid. In other words, Aviva won't decline a claim if your heart attack wasn't of a specified level.
Thankfully, others are now catching up, CIC is a constantly movable feast. It can also be paid as income, not just a lump sum. So, speak with an adviser you trust and ask them why they're suggesting this cover or that cover, for you. Finally, I occasionally release this via social media - it's a nice freebie from Aviva for parents of babies and toddlers.
http://www.aviva.co.uk/life/free-parent-life-cover...
Last year, by way of an example, Aviva enhanced its heart attack definition on new critical illness policies, meaning it will now pay out on the diagnosis of a heart attack, regardless of how severe it is. This removes the requirement for a client to have to experience the hassle of proving a specified level of blood troponin simply in order for the claim to be paid. In other words, Aviva won't decline a claim if your heart attack wasn't of a specified level.
Thankfully, others are now catching up, CIC is a constantly movable feast. It can also be paid as income, not just a lump sum. So, speak with an adviser you trust and ask them why they're suggesting this cover or that cover, for you. Finally, I occasionally release this via social media - it's a nice freebie from Aviva for parents of babies and toddlers.
http://www.aviva.co.uk/life/free-parent-life-cover...
Just been through this exercise myself. My only observation is to make sure you set it up when you're young, fit and healthy because once you get a bit of medical "history" it all starts to get horribly tedious plus more expensive! I had to give them permission to access my entire medical history. Some people wouldn't be happy doing this but my thinking was that if they have all the details then they're less likely to wriggle out of paying should the worst happen.
No.. here's one example:
http://www.ftadviser.com/2015/03/27/insurance/heal...
Which is why talking to a aggregator won't be cheaper, and probably won't get you cover that's as closely suited and priced for you as possible. If you can get a great service from a pro like Dale, you'd be mad to turn the opportunity down.
http://www.ftadviser.com/2015/03/27/insurance/heal...
Which is why talking to a aggregator won't be cheaper, and probably won't get you cover that's as closely suited and priced for you as possible. If you can get a great service from a pro like Dale, you'd be mad to turn the opportunity down.
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