Is it worth staying in life Insurance?
Discussion
I have started a new company and there is a lump sum if I were to died while employed. Therefore I don't need my current life insurance. And as you can imagine this could be extra money a month.
What would happen if I leave this company and move on in a couple of years. Will my new life insurance be way more expensive?
Is it worth keeping my current life insurance?
What would happen if I leave this company and move on in a couple of years. Will my new life insurance be way more expensive?
Is it worth keeping my current life insurance?
caz_manc said:
I have started a new company and there is a lump sum if I were to died while employed. Therefore I don't need my current life insurance. And as you can imagine this could be extra money a month.
What would happen if I leave this company and move on in a couple of years. Will my new life insurance be way more expensive?
Is it worth keeping my current life insurance?
Is the lump sum the same or more than the sum assured of your life insurance?What would happen if I leave this company and move on in a couple of years. Will my new life insurance be way more expensive?
Is it worth keeping my current life insurance?
Do you have dependants who would be relying on the pay out upon your death?
Life insurance gets more expensive the older you get, so yes a new policy further down the line will be more expensive. Also, if you have any health issues you may not be able to get cover at all or it may be loaded making it very expensive.
What you will be getting is called Death In Service and is a free benefit and should be treated as such and not as product to repay any financial commitments your current life insurance may be protecting such as a mortgage etc.
Death In Service pay outs are not guaranteed as they at the discretion of the company trustee's, you can't nominate who it goes to and the trustees can actually decide who they want to distribute any pay out to.....
I despair at clients who tell me they are relying on DIS to protect a mortgage as generally they actually have no idea of how the DIS works....
Do not rely of Death In Service as a replacement for proper life insurance. Many people who die whilst in working age do not die suddenly. They get ill, and die.
If you get cancer or some other awful illness, you won't be employed when you die, you'll have been let go long before then. So no DIS cover.
If you get cancer or some other awful illness, you won't be employed when you die, you'll have been let go long before then. So no DIS cover.
TwigtheWonderkid said:
Do not rely of Death In Service as a replacement for proper life insurance. Many people who die whilst in working age do not die suddenly. They get ill, and die.
If you get cancer or some other awful illness, you won't be employed when you die, you'll have been let go long before then. So no DIS cover.
Very good point.If you get cancer or some other awful illness, you won't be employed when you die, you'll have been let go long before then. So no DIS cover.
It should be noted that life assurance rates have tumbled with the internet, life expectancy, technological advances, healthier lifestyles.....
If your current policy was taken out 10 years ago, through your bank for example then I would be curious to see what sort if rates you would be quoted now by a company like Life Search ???
The reason I ask it that 7 years later I was quoted LESS for the same policy length / amount because I was now classed as a non smoker.
Without knowing any specific details then you should stick to Sarnies advice but if you have no medical conditions I would also be getting an online quote on the quiet.
As a direct answer to your question I would stay as you are.
If your current policy was taken out 10 years ago, through your bank for example then I would be curious to see what sort if rates you would be quoted now by a company like Life Search ???
The reason I ask it that 7 years later I was quoted LESS for the same policy length / amount because I was now classed as a non smoker.
Without knowing any specific details then you should stick to Sarnies advice but if you have no medical conditions I would also be getting an online quote on the quiet.
As a direct answer to your question I would stay as you are.
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