Life insurance
Discussion
With a dependent I am getting to an age where I should be thinking about this. Its also on my work benefits as an option recently.
Worst thing I'd want is bare minimum for my child if I croaked it.
So key questions on this;
-What is acceptable minimum to pay for a non smoker with no health conditions?
-Do you do it over maximum years or until you get to a point where you've paid mortgages off and have more assets in life?
-Do you go with an increasing or decreasing priced policy?
It's a part of the insurance world I've Never looked into so sorry for the stupid questions.
Worst thing I'd want is bare minimum for my child if I croaked it.
So key questions on this;
-What is acceptable minimum to pay for a non smoker with no health conditions?
-Do you do it over maximum years or until you get to a point where you've paid mortgages off and have more assets in life?
-Do you go with an increasing or decreasing priced policy?
It's a part of the insurance world I've Never looked into so sorry for the stupid questions.
fourstardan said:
With a dependent I am getting to an age where I should be thinking about this. Its also on my work benefits as an option recently.
Worst thing I'd want is bare minimum for my child if I croaked it.
So key questions on this;
-What is acceptable minimum to pay for a non smoker with no health conditions?
-Do you do it over maximum years or until you get to a point where you've paid mortgages off and have more assets in life?
-Do you go with an increasing or decreasing priced policy?
It's a part of the insurance world I've Never looked into so sorry for the stupid questions.
The question is what do you want to achieve? You mention your child so I assume a spouses / orphans pension that will provide an income until your child is x years old may actually be more useful than a lump sum? That said, a combination of the two, e.g. a reducing balance policy to pay off the mortgage plus a spouses/orphans pension could be a "better" solution.Worst thing I'd want is bare minimum for my child if I croaked it.
So key questions on this;
-What is acceptable minimum to pay for a non smoker with no health conditions?
-Do you do it over maximum years or until you get to a point where you've paid mortgages off and have more assets in life?
-Do you go with an increasing or decreasing priced policy?
It's a part of the insurance world I've Never looked into so sorry for the stupid questions.
Lots of things are possible, obviously cost will play into it a bit but the younger and healthier you are typically the cheaper it is (per month, at least!) to take out a policy.
Short answer, get together in your head some idea of what you want to happen if you were to die (and don't forget about the possibility of a debilitating illness or accident too) then go talk to a broker about how to achieve it.
my mortgage was covered by life insurance, my employment gave a years salary and critical illness cover, so at an early age I decided that I wouldn't bother with any other life insurance, I'm now almost 62, I diverted what I would have been paying into a pension fund, it worked for me....
Most of us manage to get through life trouble free until we have enough to not be concerned....
Most of us manage to get through life trouble free until we have enough to not be concerned....
Does your employer provide anything?
I have 5x salary as death in service, on top of any other policy I have in place.
ETA: I also have a couple of dependents so our set up would clear the mortgage and leave them something like £700k to see them through - meaning wife wouldn’t need to work.
The slight cheat here is that I have 2 other bits of coverage, one standard and one through work which is silly cheap (£2/pm for £250k cover) - this bit sounds similar to what you reference. .
I have 5x salary as death in service, on top of any other policy I have in place.
ETA: I also have a couple of dependents so our set up would clear the mortgage and leave them something like £700k to see them through - meaning wife wouldn’t need to work.
The slight cheat here is that I have 2 other bits of coverage, one standard and one through work which is silly cheap (£2/pm for £250k cover) - this bit sounds similar to what you reference. .
Edited by Captain Raymond Holt on Monday 14th November 09:10
Looks like you'll be looking at term assurance with a set sum assured, or a decreasing term assurance (it's the sum assured that decreases not the term) just for mortgage protection.
You mention company sponsored death benefits. You should not rely solely on these because you may not always be employed by that company: such benefits cease after leaving their employment.
R.
You mention company sponsored death benefits. You should not rely solely on these because you may not always be employed by that company: such benefits cease after leaving their employment.
R.
Captain Raymond Holt said:
I have 5x salary as death in service, on top of any other policy I have in place.
Never factor in a work death in service benefit when deciding on your life insurance requirements. Never..ever. It's a terrible idea.Not many people of working age die and most of those that do will not be in service, because they'll have cancer or some other terrible illness and will have been let go from work long before they die.
Death in service is a nice bonus for your next of kin if you die in an accident, or of a heart attack or brain haemorrhage. But beyond that it's useless.
Employers give it because it sounds like a great benefit, and it's cheap for them to buy. The reason it's cheap is because for the reasons I've just given, insurers don't have to pay out that often.
The monthly one my wife and I have is good value in my view.
A chunk a month with no tax exposure until the youngest is 18yrs old.
That at least covers off the hardest span of time should the worst happen.
The real issues though are being unable to work but not dead… and the financial stress that’d bring.
The insurance cost for that cover is obviously much higher.
A chunk a month with no tax exposure until the youngest is 18yrs old.
That at least covers off the hardest span of time should the worst happen.
The real issues though are being unable to work but not dead… and the financial stress that’d bring.
The insurance cost for that cover is obviously much higher.
AyBee said:
If I can ask another question - is it worthwhile to include mortgage in life insurance or get a separate mortgage insurance policy?
Just put it all in one policy.We had life assurance in place until our retirement age. When I retired I just cancelled it.
Another tip is always get the policy written in trust, it’s simple to do and most companies will have the documentation to do it.
https://www.legalandgeneral.com/insurance/life-ins...
I agree with the sentiment not to rely on your work life cover.
To give you more context, I am 40 and son is 2....nasty things happen whether natural or externally thats out of my control so im looking to see if I should put attention into it.
As for death in service, I've only started my new role recently, but I get 3x life assurance so maybe I'll just leave it on this.
As for death in service, I've only started my new role recently, but I get 3x life assurance so maybe I'll just leave it on this.
fourstardan said:
To give you more context, I am 40 and son is 2....nasty things happen whether natural or externally thats out of my control so im looking to see if I should put attention into it.
As for death in service, I've only started my new role recently, but I get 3x life assurance so maybe I'll just leave it on this.
I took it out when my child was born. A simple approach of 25 years annual take-home, increasing with inflation. As for death in service, I've only started my new role recently, but I get 3x life assurance so maybe I'll just leave it on this.
It's a little under £20 per month (vitality). No critical illness, health cover or anything. Obviously if I die after 25 years I get nothing, but these feels like a fairly decent hedge.
This is our field of expertise so happy for you to speak with one of our advisers to see what suits, as it can be a mine field.
In general I’d look at life and cic to cover the mortgage, family income benefit to support the remaining parent/guarding until that child is dependant, and income protection to cover the monthly expenses until retirement. There are so many variables though so I would advise you speak to an expert adviser to ensure you have it correct.
You’ll also need to potentially think about trusts as you done want the government raking in 40% of the benefits
In general I’d look at life and cic to cover the mortgage, family income benefit to support the remaining parent/guarding until that child is dependant, and income protection to cover the monthly expenses until retirement. There are so many variables though so I would advise you speak to an expert adviser to ensure you have it correct.
You’ll also need to potentially think about trusts as you done want the government raking in 40% of the benefits
TwigtheWonderkid said:
Captain Raymond Holt said:
I have 5x salary as death in service, on top of any other policy I have in place.
Never factor in a work death in service benefit when deciding on your life insurance requirements. Never..ever. It's a terrible idea.Not many people of working age die and most of those that do will not be in service, because they'll have cancer or some other terrible illness and will have been let go from work long before they die.
Death in service is a nice bonus for your next of kin if you die in an accident, or of a heart attack or brain haemorrhage. But beyond that it's useless.
Employers give it because it sounds like a great benefit, and it's cheap for them to buy. The reason it's cheap is because for the reasons I've just given, insurers don't have to pay out that often.
In general when considering insurance try not to use words like ‘most’ or ‘not many’. It doesn’t matter if not many people die in service if you're one of the few
. Captain Raymond Holt said:
If only I had other coverage in place to show that point which you might have just cropped out
In general when considering insurance try not to use words like ‘most’ or ‘not many’. It doesn’t matter if not many people die in service if you're one of the few.
Insurance is a complete waste of money until you need it....!In general when considering insurance try not to use words like ‘most’ or ‘not many’. It doesn’t matter if not many people die in service if you're one of the few
. When we last moved I made sure that we took out insurance for us both - me in case my wife died and I needed money to cover for her role and vice versa - I was the only salary.
Level term assurance in both cases.
We had existing decreasing term insurance for a previous mortgage which I left in place.
I vaguely recall that when we did this ( back in 2004 ) the perceived wisdom was 10xsalary.
Cover ceased when our youngest was 18.
Level term assurance in both cases.
We had existing decreasing term insurance for a previous mortgage which I left in place.
I vaguely recall that when we did this ( back in 2004 ) the perceived wisdom was 10xsalary.
Cover ceased when our youngest was 18.
I'm in a position where I wish I'd taken various insurances out. I've started trying yo get quotes for the future but think I'm going to struggle. A appreciate it won't cover anything pre existing but its made me quite complicated.
To anyone humming and harring over whether they should get it, get it. Get it right now, right this minute. Right now, immediately. You might find yourself in a position where you can't support you or your family and that could happen today.
To anyone humming and harring over whether they should get it, get it. Get it right now, right this minute. Right now, immediately. You might find yourself in a position where you can't support you or your family and that could happen today.
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