Life Insurance
Discussion
I’m looking for some advice on life insurance and who to go with, in the past it’s not been something I have been concerned with having worked for large companies that have provided a life insurance policy as a benefit.
Now having left the big companies and working for a smaller company which doesn’t offer any type of benefits I find myself thinking about life insurance, being in my early 40’s with a couple of young kids it’s really something I need to get sorted.
Who are the reputable companies to speak to about life insurance?
Now having left the big companies and working for a smaller company which doesn’t offer any type of benefits I find myself thinking about life insurance, being in my early 40’s with a couple of young kids it’s really something I need to get sorted.
Who are the reputable companies to speak to about life insurance?
Speak to an advisor, you won’t know what you don’t know.
Some tips (from an advisor)
Take a single life policy (don’t do joint). Make sure you get a trust document and correctly complete it.
Include waiver of premium.
Aviva can include global cover for £3pm
Extra, it can pay up to £2m if you need treatment not available on Nhs which is available outside UK.
Go for fixed payments
Cheap isn’t best. Use a provider that underwrites upfront. Use a trusted high st name.
I arrange the majority that we do with Aviva due to the global cover and premiums and Legal and General as have had great claims experience with them.
Some tips (from an advisor)
Take a single life policy (don’t do joint). Make sure you get a trust document and correctly complete it.
Include waiver of premium.
Aviva can include global cover for £3pm
Extra, it can pay up to £2m if you need treatment not available on Nhs which is available outside UK.
Go for fixed payments
Cheap isn’t best. Use a provider that underwrites upfront. Use a trusted high st name.
I arrange the majority that we do with Aviva due to the global cover and premiums and Legal and General as have had great claims experience with them.
It's life assurance by the way.
Insurance is for something that might not happen, assurance's his for something that will happen (death).
I took out separate policies for both my wife and myself (Legal & General and Aviva) on a fixed payout that pays out an agreed amount within a certain timeframe (25yrs I think to coincide with our mortgage). But you can also get a reducing return where the amount you receive reduces each year, as a mortgage does, this is a cheaper policy. Can't recall the exact names of the two different policies. It's generally cheaper the younger you are.
Insurance is for something that might not happen, assurance's his for something that will happen (death).
I took out separate policies for both my wife and myself (Legal & General and Aviva) on a fixed payout that pays out an agreed amount within a certain timeframe (25yrs I think to coincide with our mortgage). But you can also get a reducing return where the amount you receive reduces each year, as a mortgage does, this is a cheaper policy. Can't recall the exact names of the two different policies. It's generally cheaper the younger you are.
Edited by The Gauge on Tuesday 12th September 22:09
Dale North on here sorted mine - really helpful, found me some realistic cover when didn’t think it would be easy given some specific medical conditions etc.
Sarnie also on here was great sorting my mortgage and he can help with life insurance too I believe as another alternative
I think there may be a couple more that often get recommended and the advice they give always seems spot on to a lay person!
Things like this generally bring out the best in PH!
Sarnie also on here was great sorting my mortgage and he can help with life insurance too I believe as another alternative
I think there may be a couple more that often get recommended and the advice they give always seems spot on to a lay person!
Things like this generally bring out the best in PH!
Thanks, yup it’s life assurance that I’m referring to, not sure if a mod can change the title?
I’m not looking for the cheapest but looking for a solid provider that I can go with, my old policy was with Aviva and was based on 8x of my salary but that was provided via my ex employer.
Will look into Aviva
I’m not looking for the cheapest but looking for a solid provider that I can go with, my old policy was with Aviva and was based on 8x of my salary but that was provided via my ex employer.
Will look into Aviva
RZ1 said:
Thanks, yup it’s life assurance that I’m referring to, not sure if a mod can change the title?
I’m not looking for the cheapest but looking for a solid provider that I can go with, my old policy was with Aviva and was based on 8x of my salary but that was provided via my ex employer.
Will look into Aviva
I think general advice is be cautious on just relying on company provided insurance anyway if it’s linked to employment as they often only work ‘well’ to cover things that happen quickly - anything long and drawn out the chances of still being employed and therefore covered diminish I’m not looking for the cheapest but looking for a solid provider that I can go with, my old policy was with Aviva and was based on 8x of my salary but that was provided via my ex employer.
Will look into Aviva
The Gauge said:
It's life assurance by the way.
Insurance is for something that might not happen, assurance's his for something that will happen (death).
I took out separate policies for both my wife and myself (Legal & General and Aviva) on a fixed payout that pays out an agreed amount within a certain timeframe (25yrs I think to coincide with our mortgage). But you can also get a reducing return where the amount you receive reduces each year, as a mortgage does, this is a cheaper policy. Can't recall the exact names of the two different policies. It's generally cheaper the younger you are.
If you have term cover it's called insurance. I have a policy covering me untill I am 90 but there is no certainty I will die, albeit likely. So it's insurance. If I have a life policy , open duration untill I die it's assurance.Insurance is for something that might not happen, assurance's his for something that will happen (death).
I took out separate policies for both my wife and myself (Legal & General and Aviva) on a fixed payout that pays out an agreed amount within a certain timeframe (25yrs I think to coincide with our mortgage). But you can also get a reducing return where the amount you receive reduces each year, as a mortgage does, this is a cheaper policy. Can't recall the exact names of the two different policies. It's generally cheaper the younger you are.
Edited by The Gauge on Tuesday 12th September 22:09
andy ted said:
Dale North on here sorted mine - really helpful, found me some realistic cover when didn’t think it would be easy given some specific medical conditions etc.
Sarnie also on here was great sorting my mortgage and he can help with life insurance too I believe as another alternative
I think there may be a couple more that often get recommended and the advice they give always seems spot on to a lay person!
Things like this generally bring out the best in PH!
Thanks!Sarnie also on here was great sorting my mortgage and he can help with life insurance too I believe as another alternative
I think there may be a couple more that often get recommended and the advice they give always seems spot on to a lay person!
Things like this generally bring out the best in PH!
We actually do more life policies than mortgages!
Take advice from a professional, put it in trust and steer clear of comparison site aggregators........
And whoever recommended HSBC, avoid them like the plague........
I use Legal and General. The reason I recommend them is because I’ve had the unfortunate experience of actually using it and not just paying the monthly premium. We had our policy for 15 years before making a claim.
They were polite, understanding and only required a few pieces of evidence before making a same day payment.
I now have another policy with them for when my time comes paying out to my children.
They were polite, understanding and only required a few pieces of evidence before making a same day payment.
I now have another policy with them for when my time comes paying out to my children.
Edited by oldaudi on Wednesday 13th September 06:56
Thanks for the recommendation. In terms of quality it’s down to how a provider fits with your requirements so AIG might be best for one individual and Guardian another.
We have helped many pistonheaders over the years and apply a PH discount so so drop me a pm if you would like some advice.
It’s also imperative that you place the policy in trust and consider things like family income benefit and income protection to ensure it’s a well rounded protection plan.
We have helped many pistonheaders over the years and apply a PH discount so so drop me a pm if you would like some advice.
It’s also imperative that you place the policy in trust and consider things like family income benefit and income protection to ensure it’s a well rounded protection plan.
oldaudi said:
I use Legal and General. The reason I recommend them is because I’ve had the unfortunate experience of actually using it and not just paying the monthly premium. We had our policy for 15 years before making a claim.
They were polite, understanding and only required a few pieces of evidence before making a same day payment.
I now have another policy with them when my time comes paying out to my children.
Agreed, I have seen them pay out very quickly many times. They were polite, understanding and only required a few pieces of evidence before making a same day payment.
I now have another policy with them when my time comes paying out to my children.
When I was about your age and started cycling into London I upped my cover. I used https://www.money-minder.com/protection/life-insur... and played with a few ideas for 35 years of cover, ending at age 70.
I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
It does sound a lot, but that was the number that I settled on to cover my wife and four kids, and I gave consideration to how inflation might erode the value of money over the 35 years the cover is in place for.
I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
It does sound a lot, but that was the number that I settled on to cover my wife and four kids, and I gave consideration to how inflation might erode the value of money over the 35 years the cover is in place for.
WhiskyDisco said:
When I was about your age and started cycling into London I upped my cover. I used https://www.money-minder.com/protection/life-insur... and played with a few ideas for 35 years of cover, ending at age 70.
I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
It does sound a lot, but that was the number that I settled on to cover my wife and four kids, and I gave consideration to how inflation might erode the value of money over the 35 years the cover is in place for.
Makes sense.I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
It does sound a lot, but that was the number that I settled on to cover my wife and four kids, and I gave consideration to how inflation might erode the value of money over the 35 years the cover is in place for.
1.2m doesn’t go as far as many think in replacing the income a Dad can provide, people tend to burn through the initial lump sum very quickly but it is 1.2m more than most people have in place.
You can take index linked cover on long term policies to keep pace with inflation but in theory the lump sum of you 1.2m can go further for every year you do nit claim.
WhiskyDisco said:
When I was about your age and started cycling into London I upped my cover. I used https://www.money-minder.com/protection/life-insur... and played with a few ideas for 35 years of cover, ending at age 70.
I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
The trouble with taking out several so you can stop paying on one or two to save money is that you are playing right into the insurers' hands. You're paying £86/month give or take for 35 years, starting at 35 and and ending at 70. When you were 35 you were massively overpaying. There's no way £1.2m of cover costs £86/month for a 35 y/o. Maybe £50/month would be right. But you'll still be paying £86/month for £1.2m of cover when you're 69, which is dirt cheap. A 69 y/o should really be paying maybe £120/month. By cancelling the policy part way thru the term, you've overpaid for years and are never going to get to the years when you would be underpaying. You were very unlikely to die between 35-50, far more likely to die between 60 - 75. You cancel say aged 55, and the insurers are dancing with joy. I took out a single policy for a lump sum, fixed premiums with L&G. Putting the policy into trust was simple, and they provide guidance for doing so.
If I were to do it again I would not take out one single policy but instead take out several. The reason being is that I can opt to stop paying one or two to save a bit of money, but wouldn't want to do that with one big one.
Taken out 15 years ago, £1.2m of level cover costs me £85.73 a month.
Also, if you do die, your wife has the hassle of dealing with several policies and claims instead of just 1 policy.
Edit - I just checked and I was 38 years old when I took the cover out, and it's a 32 year plan (so til 70 years old).
Still - you're right, a 35 year old wishing to take the same cover will pay just £45 a month, which is a bargain IMO. If I wanted to take 26 years now, at 49 years of age I'd be paying £148 a month.
Still - you're right, a 35 year old wishing to take the same cover will pay just £45 a month, which is a bargain IMO. If I wanted to take 26 years now, at 49 years of age I'd be paying £148 a month.
Edited by WhiskyDisco on Wednesday 13th September 20:52
I’d certainly agree taking out more cover when younger is always a better deal, but lump sums need to be vast these days to ensure a family can survive financially for say 20 years for example. Family income benefit and income protection are always worth considering as so many families live so close to the bone now, that they simply couldn’t survive on the governments ESA of £85 pcm.
One thing everyone needs to remember is that circumstances change so often now for families, financials and with policies themselves, so it’s worth reviewing your planning every couple of years.
Lastly, treat any work cover as a bonus as the claim stats are only circa 75%, and quite often people have left said job due to an illness before they actually die sometimes years later.
One thing everyone needs to remember is that circumstances change so often now for families, financials and with policies themselves, so it’s worth reviewing your planning every couple of years.
Lastly, treat any work cover as a bonus as the claim stats are only circa 75%, and quite often people have left said job due to an illness before they actually die sometimes years later.
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