Struggling with getting life insurance quotes
Discussion
What am I doing wrong here? I've never had life insurance before, but I'm realising that my family would be completely exposed financially if anything unfortunate were to happen to me.
I'm 45 and the main bread winner in my household with a wife that works part time and 2 kids under 10 years. I pay about £2k a month into the joint account which adds to my Wife's wage to cover the bills and mortgage. We have about £100k remaining on the mortgage.
Rough numbers, but I *think* I want cover for £100k + (20 years * 12 months * £2k = £480,000) = £580,000.
My first hurdle is that for many providers, the absolute maximum cover is about £400k for my age(?). So I tweak my requirement down to £400k and continue the form.
On a couple of sites now, I have spent ages putting all my details in and on both occasions the website says they can not offer insurance to me without explaining the reason why. I don't get it - I'm relatively healthy, I don't smoke, I drink very little, no family pattern of cancer, etc.
Why does computer say no?
How much cover do you think I should ask for in these circumstances? Roughly how much should I expect to pay for the monthly cover?
I'm 45 and the main bread winner in my household with a wife that works part time and 2 kids under 10 years. I pay about £2k a month into the joint account which adds to my Wife's wage to cover the bills and mortgage. We have about £100k remaining on the mortgage.
Rough numbers, but I *think* I want cover for £100k + (20 years * 12 months * £2k = £480,000) = £580,000.
My first hurdle is that for many providers, the absolute maximum cover is about £400k for my age(?). So I tweak my requirement down to £400k and continue the form.
On a couple of sites now, I have spent ages putting all my details in and on both occasions the website says they can not offer insurance to me without explaining the reason why. I don't get it - I'm relatively healthy, I don't smoke, I drink very little, no family pattern of cancer, etc.
Why does computer say no?
How much cover do you think I should ask for in these circumstances? Roughly how much should I expect to pay for the monthly cover?
Try multiple smaller policies with different providers? You could perhaps use different terms to taper the payout - at 45 £2k/month for 20 years doesn’t sound daft, but would still need 20 years worth if you died at say 64?
Over a longer period you wouldn’t actually need £480k cash to provide a £2k/month income for 20 years if it was invested.
You might be better talking to a broker as they will be able to advise what the typical parameters are for each insurer.
What age are you trying to cover yourself up to?
Over a longer period you wouldn’t actually need £480k cash to provide a £2k/month income for 20 years if it was invested.
You might be better talking to a broker as they will be able to advise what the typical parameters are for each insurer.
What age are you trying to cover yourself up to?
FreeLitres said:
What am I doing wrong here?
Why does computer say no?
How much cover do you think I should ask for in these circumstances? Roughly how much should I expect to pay for the monthly cover?
Something seems odd there to me Why does computer say no?
How much cover do you think I should ask for in these circumstances? Roughly how much should I expect to pay for the monthly cover?
I’m similar age and arranged cover a few years ago after being made redundant.
I’m with a broker called protect line who are based on the south coast somewhere and I *think I initially went through Tom.co.uk to get them.
I’m with AIG Life and have £600K cover for £35 per month. There didn’t seem to be any maximum ?
Somebody said:
As with the other reply about using a broker.I use LS many years ago and they were able to arrange exactly what I wanted with from memory 3 different providers given my wife and I were both taking out policies with different sum insureds and slightly different cover ie critical illness cover on her but not me as my company would have paid me a sum on that for me.
If using an IFA etal be aware they will be getting a big portion of the premium.
I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
Take a look at moneyworld.com
I have two policies through them of £400k each, one with AIG and another with Zurich. They weren't the cheapest, L&G was, but they didn't have an issue with me having a motorbike licence.
L&G wanted £125 a month if I went with them and wanted bike cover, otherwise it was £37pm.
Anyhow I pay about £90 a month for the two policies now.
Also, you don't mention the length of cover. If you go over 80 Years old, I found the insurance company just bail out. 79 is fine though.
I have two policies through them of £400k each, one with AIG and another with Zurich. They weren't the cheapest, L&G was, but they didn't have an issue with me having a motorbike licence.
L&G wanted £125 a month if I went with them and wanted bike cover, otherwise it was £37pm.
Anyhow I pay about £90 a month for the two policies now.
Also, you don't mention the length of cover. If you go over 80 Years old, I found the insurance company just bail out. 79 is fine though.
Edited by bunchofkeys on Saturday 20th July 13:54
As others have said, look at what future expenses might be rather than what they are now
You have also mentioned two kids under 10. How far under 10? If they are close to 10 now then your wife’s expenses may fall dramatically inside 20 years. Whilst you might want to have a provision for Uni costs for them, there are other ways of funding it.
Also make sure that any policy covers exactly what you want it to, there are exclusions.
As others have said, are you comfortable with how things will play out should one of you become seriously ill and has to give up work, especially if the other one then also has to give up work as well to provide care for partner/children
Finally, look at reviews from people have have needed to make a claim. Unfortunately I had to claim for both Critical Illness and Life cover from Royal London and they made a very difficult time just a little easier
You have also mentioned two kids under 10. How far under 10? If they are close to 10 now then your wife’s expenses may fall dramatically inside 20 years. Whilst you might want to have a provision for Uni costs for them, there are other ways of funding it.
Also make sure that any policy covers exactly what you want it to, there are exclusions.
As others have said, are you comfortable with how things will play out should one of you become seriously ill and has to give up work, especially if the other one then also has to give up work as well to provide care for partner/children
Finally, look at reviews from people have have needed to make a claim. Unfortunately I had to claim for both Critical Illness and Life cover from Royal London and they made a very difficult time just a little easier
I used a company called Reassured, they were good and I think it was a 20yr thing
I don’t know much but I paid a bit extra so that I have a fixed premium for the life of the policy, the 5yr option was significantly less but of course in 5yrs you’re back to negotiating.
Recently I decided to look out of interest and one of the we won’t be beaten on price types quoted me and it was 60% than I’m paying
Again the cost seems to be affected by the length not surprisingly
I don’t know much but I paid a bit extra so that I have a fixed premium for the life of the policy, the 5yr option was significantly less but of course in 5yrs you’re back to negotiating.
Recently I decided to look out of interest and one of the we won’t be beaten on price types quoted me and it was 60% than I’m paying
Again the cost seems to be affected by the length not surprisingly
gotoPzero said:
If using an IFA etal be aware they will be getting a big portion of the premium.
I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
It wouldn’t be 30% a year. Many insurers will be paying up to 100% of first years premium which would be partially clawed back if policy cancelled within say 10 years. I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
Very often it makes no difference taking out a policy direct with the insurer as most don’t offer dual pricing.
How would you propose the IFA gets paid if they don’t receive a commission? Who is going to pay for the personalised advice,research etc.
https://www.legalandgeneral.com/landg-assets/advis...
Edited by craig1912 on Saturday 20th July 14:59
DaveA8 said:
I used a company called Reassured, they were good and I think it was a 20yr thing
I don’t know much but I paid a bit extra so that I have a fixed premium for the life of the policy, the 5yr option was significantly less but of course in 5yrs you’re back to negotiating.
Recently I decided to look out of interest and one of the we won’t be beaten on price types quoted me and it was 60% than I’m paying
Again the cost seems to be affected by the length not surprisingly
Most policy premiums are fixed for the life of the policy.I don’t know much but I paid a bit extra so that I have a fixed premium for the life of the policy, the 5yr option was significantly less but of course in 5yrs you’re back to negotiating.
Recently I decided to look out of interest and one of the we won’t be beaten on price types quoted me and it was 60% than I’m paying
Again the cost seems to be affected by the length not surprisingly
Premiums are based on sum assured, current age and term of policy. The base premium can then be loaded for certain existing medical conditions.
craig1912 said:
gotoPzero said:
If using an IFA etal be aware they will be getting a big portion of the premium.
I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
It wouldn’t be 30% a year. Many insurers will be paying up to 100% of first years premium which would be partially clawed back if policy cancelled within say 10 years. I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
Very often it makes no difference taking out a policy direct with the insurer as most don’t offer dual pricing.
How would you propose the IFA gets paid if they don’t receive a commission? Who is going to pay for the personalised advice,research etc.
https://www.legalandgeneral.com/landg-assets/advis...
Edited by craig1912 on Saturday 20th July 14:59
At the back there is a single page that says something like
"You have agreed that Mr A Smith, ABC Co IFA will administer this policy for the commission of £nn.nn per month."
(which works back to c30%). "By continuing the policy you agree to these payments being made from your premium"
Or something like that.
When it was a fiver commission a month I wasn't bothered. But now 15 years later its quite a bit more than that.
And then its x 2 as the wife has an identical policy.
I get it he wants to be paid, but tbh if I had sat down and thought about it I might think twice so I am just saying that its worth looking into.
Just my 2ps worth etc.
gotoPzero said:
craig1912 said:
gotoPzero said:
If using an IFA etal be aware they will be getting a big portion of the premium.
I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
It wouldn’t be 30% a year. Many insurers will be paying up to 100% of first years premium which would be partially clawed back if policy cancelled within say 10 years. I was quite shocked to see they got 30% of ours.
I did shop around, but by the time I did (it was 10 years into the policy) it seemed most providers were similar cost wise so wasnt worth upsetting the apple cart.
I am sure had I shopped around on day 1 I could have found a policy for that 30% less. Which over 30 years adds up..
Very often it makes no difference taking out a policy direct with the insurer as most don’t offer dual pricing.
How would you propose the IFA gets paid if they don’t receive a commission? Who is going to pay for the personalised advice,research etc.
https://www.legalandgeneral.com/landg-assets/advis...
Edited by craig1912 on Saturday 20th July 14:59
At the back there is a single page that says something like
"You have agreed that Mr A Smith, ABC Co IFA will administer this policy for the commission of £nn.nn per month."
(which works back to c30%). "By continuing the policy you agree to these payments being made from your premium"
Or something like that.
When it was a fiver commission a month I wasn't bothered. But now 15 years later its quite a bit more than that.
And then its x 2 as the wife has an identical policy.
I get it he wants to be paid, but tbh if I had sat down and thought about it I might think twice so I am just saying that its worth looking into.
Just my 2ps worth etc.
gotoPzero said:
It absolutely is 30% a year. The insurer sends a statement every year.
At the back there is a single page that says something like
"You have agreed that Mr A Smith, ABC Co IFA will administer this policy for the commission of £nn.nn per month."
(which works back to c30%). "By continuing the policy you agree to these payments being made from your premium"
Or something like that.
When it was a fiver commission a month I wasn't bothered. But now 15 years later its quite a bit more than that.
And then its x 2 as the wife has an identical policy.
I get it he wants to be paid, but tbh if I had sat down and thought about it I might think twice so I am just saying that its worth looking into.
Just my 2ps worth etc.
Fair enough… you’ve been ripped off. Level term assurance is one of the cheapest best value insurances you can buy. Nobody should be paying an increasing premium and nobody should be paying 30% every year in commission.At the back there is a single page that says something like
"You have agreed that Mr A Smith, ABC Co IFA will administer this policy for the commission of £nn.nn per month."
(which works back to c30%). "By continuing the policy you agree to these payments being made from your premium"
Or something like that.
When it was a fiver commission a month I wasn't bothered. But now 15 years later its quite a bit more than that.
And then its x 2 as the wife has an identical policy.
I get it he wants to be paid, but tbh if I had sat down and thought about it I might think twice so I am just saying that its worth looking into.
Just my 2ps worth etc.
Most commission is around 50 - 100% of first years premium ( with clawback for early cancellation) and if there is a renewal commission it is generally low eg 2.5%.
I’d also ask yourself what you are getting for that 30% and if you don’t think you are getting value for money I’d ask the insurer to stop paying it. There is no administration required on a term assurance policy.
Why does anyone need an IFA, the thing about running it through a limited company is old hat and I personally think it suits the seller as with the various deeds etc (as per my previous post I have no specific knowledge but I got like for like prices) they add a layer of complexity and hide costs in there.
As for tax etc, I wouldn’t rely on what an IFA says on this and I can say from previous experience their duty of care in these matters is so narrow as to be effectively non existent.
If one is married, the tax planning is simple.
At the expense of offending any on here, I find them of little use as the wide area of operation surely limits knowledge and frankly they are preprogrammed to keep selling, policy on policy on policy on policy
The only time these days I’d consider an IFA is if I was doing so well that the few hours I need to research could be spent earning a multiple of the fees but that’s not the case so I’ll figure it out myself
As for tax etc, I wouldn’t rely on what an IFA says on this and I can say from previous experience their duty of care in these matters is so narrow as to be effectively non existent.
If one is married, the tax planning is simple.
At the expense of offending any on here, I find them of little use as the wide area of operation surely limits knowledge and frankly they are preprogrammed to keep selling, policy on policy on policy on policy
The only time these days I’d consider an IFA is if I was doing so well that the few hours I need to research could be spent earning a multiple of the fees but that’s not the case so I’ll figure it out myself
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