Life insurance. What type do you have? Recommendations req.

[RetroTed]

Due to a friends recent illness I really need to look into changing my existing shyte cover
I have viewed the comparison sites and they don't appear to give sound advice.
What's the best cover to go for?
Any recommendations for types of cover and where to shop for them will be greatly appreciated.

Retro

[Paul Drawmer]

RetroTed said:

Due to a friends recent illness I really need to look into changing my existing shyte cover
I have viewed the comparison sites and they don't appear to give sound advice.
What's the best cover to go for?
Any recommendations for types of cover and where to shop for them will be greatly appreciated.

Retro

Don't understand what a friend's illness would have to do with your cover?

Why do you want life assurance, what/who are you trying to protect in the event of you dying too early?

[Beardy10]

I can fully understand the OP's motivation..... I get life cover through work but finally sorted out a proper level of cover now as I am married and have a young family...I did that early last year. A friend of mine had a very close thing (think air ambulance, wife being told he may not survive and if he does he'll have brain damage) last year and now has an ICD plumbed in in case his heart should ever stop again....luckily he made a full recovery. He was a fit, healthy 30 something who could have got life cover for peanuts....he now can't get it at all. You never know what's comign round the corner and you can always cancel the cover....I took my life cover out in three separate policies so if I want I can simply cancel one if I think I need less cover or can't afford it any more. If you take one large policy out you can't partially cancel and it obviously gets more expensive as you get older.

[beemarman]

I can't agree more.

I’m 37 fit and healthy, but 2 weeks ago I was diagnosed with bowel cancer. 10yrs ago I took out a critical illness policy with Halifax for £210k. Two weeks before I was diagnosed I got a letter stating the premium is going up from £31 to £85 per month.

I nearly cancelled the policy as I thought am fit and healthy so didn't see why I should pay £81 for critical. I even faxed them a cancellation letter, but because I forgot to sign the letter they couldn't cancel. Now am hopefully due a payout of nearly £270k from them.

If you're young I would say go for it as it much cheaper and anything could happen to you at any time.

[Welshbeef]

If you have a wife/kids I'd say a life policy matching the outstanding Mortgage + loans+ credit card debt is a must.

Ive got this cover both for me & my wife so if either of us pop our cloggs the survivor will be debt free.
Likewise both in Pensions which have a lump sum payout of 4-6 times annual salary in the event of death in service.
If the worst were ever to happen Im confident the survivor would be debt free and be able to stay in our house and have a tidy amount of cash put aside.

[Beardy10]

I'd check CIC policies terms very carefully....it's amazing what they don't pay out for. My friend despite now not being able to drive or do many other things that you would take for granted didn't get a pay out at all on his cover. I have critical illness cover for myself and looked at getting it for my wife but decided against in her case the probability of her getting one of the diseases that would pay out before she was 50 (when we wanted the over until) was mathematically so low it made the cover look quite expensive.

[Welshbeef]

A friend of mine sadly had testicular cancer at mid 20's he had bought a house and lived there with his now wife for a number of years but had got a mortgage with insurance cover.

Once diagnosed he was given x months/years to live. With a lot of effort (not something which he'd want to deal with at that time) the insurance comp paid out.
Great news on that front they were instantly mortgage free, but better still following major medical care and being cut to pieces top to tail he made a full recovery.


Good call re critical illness cover - will need to look into that one. Really does make you think as if that happend to either me or the wife clearly I'd want to look after her myself so it would be two lost salaries (not that that would be of the slightest concern however having no debt mortgage free would certainly be a weight off/remove a layer of stress.)

[bogwoppit]

I've never really found a CIC policy that is quite right. There are lots of things not covered, and half of the things they do cover I could easily work despite the illness.

[bogwoppit]

musclecarmad said:

bogwoppit said:

I've never really found a CIC policy that is quite right. There are lots of things not covered, and half of the things they do cover I could easily work despite the illness.

CIC isn't there to payout if you can't work - it is there to payout upon diagnosis of a specified illness. The idea is you can go back to work or not, it gives you choice.

Income protection is what pays out if you are unable to work for whatever reason due to illness/accident/injury etc.

To me the point of a big payout would be to pay off the mortgage and/or provide financial security. I'm not saying CIC only pays out if you have a job, only covers your salary, or anything like that. I'm saying: I personally do not think I would need a big payout if I could continue to work just fine.

I'm not saying people shouldn't take it, just that I'd be more inclined to myself if I weren't paying what is a large ongoing cost for something I don't need.

Edited by bogwoppit on Thursday 19th August 00:48

[Stupeo]

Can anyone make any recommendations for cover?

I am 23 years old - fit and healthy but with a little one on the way, want to make sure everything is OK should the worse happen.

Matt.

[Pommygranite]

Stupeo said:

Can anyone make any recommendations for cover?

I am 23 years old - fit and healthy but with a little one on the way, want to make sure everything is OK should the worse happen.

Matt.

Everything -

Death, TPD, Income Protection and Trauma/CIC cover.

Your income is your greatest asset - protect that followed by CIC then TPD/Death.

Its amazing how many people will take excessive insurance on a stbox car but not take their own mortality seriously.

On another note, dont forget to cover your partner. If she isnt work, gets very ill or dies, think about the impact to your lifestyle and finances having to hire a nanny/housekeeper.

[Stupeo]

Pommygranite said:

Stupeo said:

Can anyone make any recommendations for cover?

I am 23 years old - fit and healthy but with a little one on the way, want to make sure everything is OK should the worse happen.

Matt.

Everything -

Death, TPD, Income Protection and Trauma/CIC cover.

Your income is your greatest asset - protect that followed by CIC then TPD/Death.

Its amazing how many people will take excessive insurance on a stbox car but not take their own mortality seriously.

On another note, dont forget to cover your partner. If she isnt work, gets very ill or dies, think about the impact to your lifestyle and finances having to hire a nanny/housekeeper.

Okay, cheers. Any recommendations provider wise. I was offer it by one of my banks - Halifax but don't trust them?

I am going to look into it pronto!

Matt

[Pommygranite]

Stupeo said:

Pommygranite said:

Stupeo said:

Can anyone make any recommendations for cover?

I am 23 years old - fit and healthy but with a little one on the way, want to make sure everything is OK should the worse happen.

Matt.

Everything -

Death, TPD, Income Protection and Trauma/CIC cover.

Your income is your greatest asset - protect that followed by CIC then TPD/Death.

Its amazing how many people will take excessive insurance on a stbox car but not take their own mortality seriously.

On another note, dont forget to cover your partner. If she isnt work, gets very ill or dies, think about the impact to your lifestyle and finances having to hire a nanny/housekeeper.

Okay, cheers. Any recommendations provider wise. I was offer it by one of my banks - Halifax but don't trust them?

I am going to look into it pronto!

Matt

I'm afraid not. I'm an IFA in Australia, but when i was one in the UK a couple of years ago i would have said the major life providers like Aviva, perhaps Liverpool Victoria.

Banks are usually bloody expensive and as they are merely brokers for insurance then they're taking a commission cut.

Go direct, you can do it yourself, its very easy unless you need advice on cover then an IFA is definitely the best person to assist. They may also get commission but their choice of rates may make it ultimately cheaper than the banks.

The devil is all in the detail, not the price and as mentioned child cover, terms and underwriting process all play a part as to what is best. Is the cheapest one the worst? No not always, but read the fine print and definitely read the Product Disclosure Statement. If its not listed it means the issue is covered unless it specifically lists what IS covered. Anything then not listed is excluded.

Insurance companies do pay and rarely argue the case to the extremes cynics think but they are thorough - if you tell the truth on your application you will be fine. Its people who blatantly lie or pretend they 'didnt realise' they had to tell the insurance company about an issue that have problems when claiming.

You may get a quote for various insurances and not take the Income Protection as you deem it expensive, but take the Death cover because its cheap. The reason IP cover is expensive is because the chance of you claiming is higher which means its more realistic. Take that as a hint as to what is most important.

And remember, its the one thing you pay for that you hope you never actually need. But those that get it and do claim and do get paid, well they're proof of its benefits.