Life Insurance
Discussion
Desk20 said:
Get in touch with PH’r dalenorth.
He took the time to find out exactly what we needed and sorted out a policy that covered me for racing as well.
Its nice to have a bit of car chat to break up the mundane insurance bit.
Cheers, I have sent him an message. I am literally clueless as to what I need so any help would be brilliant!He took the time to find out exactly what we needed and sorted out a policy that covered me for racing as well.
Its nice to have a bit of car chat to break up the mundane insurance bit.
Desk20 said:
Me too, I just looked at it in simple terms. If I died, how much money would my wife need to keep her and the kids comfortable?
Once I had that figure, it was a simple case of taking out a policy to match that.
So if you had a mortgage in place, would you just want that covered and no more? Also, would you have a fixed some or decreasing?Once I had that figure, it was a simple case of taking out a policy to match that.
(Sorry!)
Donatello said:
So if you had a mortgage in place, would you just want that covered and no more? Also, would you have a fixed some or decreasing?
(Sorry!)
In my case yes, mortgage cover only. My Mrs has a job with a good pension, so there was no need to pay for more cover than necessary. (Sorry!)
Although I did go for fixed sum on the basis that in the early days, the mortgage being paid off would giver her financial freedom and if anything happened to me some years on, the extra would be a big help later in life. I just hope that it’s never needed.
The Moose said:
In some ways, I guess you'd want a fixed some as it would effectively be a decreasing sum assuming over a long period of time we'll experience inflation to some degree.
I'm in the same boat currently, but without wife or children so haven't bothered personally.
I had done a few quotes based on fixed sums for exactly the reason you state but also, if it is fixed and the mortgage is plenty covered, there would be some spare.I'm in the same boat currently, but without wife or children so haven't bothered personally.
Desk20 said:
In my case yes, mortgage cover only. My Mrs has a job with a good pension, so there was no need to pay for more cover than necessary.
Although I did go for fixed sum on the basis that in the early days, the mortgage being paid off would giver her financial freedom and if anything happened to me some years on, the extra would be a big help later in life. I just hope that it’s never needed.
As you say, you really do hope it isn't needed for anyone in the house but it is nice to have a little security I suppose.Although I did go for fixed sum on the basis that in the early days, the mortgage being paid off would giver her financial freedom and if anything happened to me some years on, the extra would be a big help later in life. I just hope that it’s never needed.
I have a decreasing value critical illness policy that covers the mortgage.
We probably have too much life insurance, i took out a 200k policy for about £12 a month a couple of years back as my company pension had no life insurance. My new job comes with life cover of 9 times salary, the other half has company provided life cover of 4 times salary.
We probably have too much life insurance, i took out a 200k policy for about £12 a month a couple of years back as my company pension had no life insurance. My new job comes with life cover of 9 times salary, the other half has company provided life cover of 4 times salary.
Paddy_N_Murphy said:
Company Death in Service of 4 times salary
WARNING- DO NOT INCLUDE DEATH IN SERVICE AS PART OF YOUR LIFE INSURANCE CALCULATIONS.Whilst death in service will be fine in the event of sudden death, or death following a very short illness, it will be no use in a huge number of cases, cancer for example. If you get ill, and can't work, your contract of employment will have been ended long before you die. Death in service only pays out if you are employed at the time of death. If you're ill with cancer or some other dreadful ailment for a couple of years before your die, you won't get death in service.
Treat your death in service figure as a nice extra bit of money for your dependants over your usual life insurance if the circumstances of your death means it pays out.
TwigtheWonderkid said:
WARNING- DO NOT INCLUDE DEATH IN SERVICE AS PART OF YOUR LIFE INSURANCE CALCULATIONS.
Whilst death in service will be fine in the event of sudden death, or death following a very short illness, it will be no use in a huge number of cases, cancer for example. If you get ill, and can't work, your contract of employment will have been ended long before you die. Death in service only pays out if you are employed at the time of death. If you're ill with cancer or some other dreadful ailment for a couple of years before your die, you won't get death in service.
Treat your death in service figure as a nice extra bit of money for your dependants over your usual life insurance if the circumstances of your death means it pays out.
This^^Whilst death in service will be fine in the event of sudden death, or death following a very short illness, it will be no use in a huge number of cases, cancer for example. If you get ill, and can't work, your contract of employment will have been ended long before you die. Death in service only pays out if you are employed at the time of death. If you're ill with cancer or some other dreadful ailment for a couple of years before your die, you won't get death in service.
Treat your death in service figure as a nice extra bit of money for your dependants over your usual life insurance if the circumstances of your death means it pays out.
As a mortgage broker I have these conversations with clients almost weekly. It astounds me at times when people think they can rely on Death In Service as a repayment vehicle for their mortgage if they were to die. Most people do not even realise that the payment of the benefit is entirely at the discretion of the trustee's and they also can distribute the money as they see fit (around a number of beneficiaries etc) rather than directly to your spouse/mortgage lender to repay the money owed. I had a client decline to take standard Life Insurance as 'things are a bit tight' but was happily paying £75 per month for Sky but wouldn't pay £9 a month to ensure his wife and kids would be financially secure if he kicked the bucket......maybe it's my mindset but I can't get head around that!
I often discuss Critical Illness cover and Income Protection with clients but more often then not I think people assume that it's just someone trying to scaremonger them into taking out a policy when all I'm doing is giving them full financial advice. Also, it seems that a lot of people think they are immortal and are never ever going to get ill, but try telling that to the 1 in 3 people that contract Cancer.
Personally, I think Life insurance is imperative for anyone who has people that would be financially affected if they were to die. It's essentially Insurance for other people so I understand that single people with no dependants don't feel the need for it potentially.
However, I think Critical Illness and or Income Protection are vital. As the poster mentioned above, if you get seriously ill then you could be off work for years and may never return. Employers will only pay sick pay at their discretion and will only do so for six months if your lucky. Worrying about the house getting repossessed should be the last of your worries........
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