Life Insurance

Admiral Huddy · 9 Jul 2009 at 11:32

What are your thoughts on life insurance?

Do you have any and what sort of cover do you have? i.e. Term, amount, critical Illness etc..

I've been paying about £50pm for a 25 year joint with with both life and critical cover for £100,000. My wife has been on at me to revise the amount since we now have 3 kids and if she (god forbid) goes, then it could be quite a burden on me.. and conversely the other way round. It's something I've been thinking of doing and even more so since we are in the process of compiling a will.

I've just had a revised quote for £250,000 which comes to £240 pm. :eek:

Without the CI, it comes to just £51pm with terminal illness.

I just wondered what other people have in place, particular those around my own age (24 of course

)

I guess I could live without the CI (excuse the pun) as the premium is to high because the price rises with age.. Maybe something some you younger people should consider.

ScarySquirrel · 9 Jul 2009 at 11:34

I don't have any, but my only view/experience of it is that the vast amounts of money my parents paid out for it over the years meant that when my Dad passed away last year it has left my Mum in a position to buy a house, no mortgage, and some left over to keep her going.

They paid something silly like 500 Euros a month though!

Morgoth · 9 Jul 2009 at 11:54

I have a policy through the post office, only because the quidco reward for taking it up offset about 10 months of payments though.

booyaka · 9 Jul 2009 at 11:59

£350k of life cover (£30 a month) and £150k of critical illness cover costing me about £20 a month. Started the CI cover when i was 24 years old hence why it's cheap! all to age 60.

Both plans are joint life with the wife.

I am an IFA so i see the need for life cover/critical illness cover as i speak to clients about it all the time.

Some people agree with it but where there is kids involved/large debts or mortgages and non working spouses etc it is imperative to consider/get at least some life cover.

The cost of CI cover is approx 5 times that of life cover as you are statistically 5 times more likely to have a critical illness during the term of the plan that you are to die.

Not pitching for business or anything like that but if anyone wants some quotes (no advice or strings attached) happy to supply some figures (independent so no attachement to any companies, just the best/cheapest quote)

antijoke · 9 Jul 2009 at 12:06

I have mine through Nationwide, is £10.17 per month for 25 years and offers £180k for death and CI.

booyaka · 9 Jul 2009 at 12:12

anticonscience said:
I have mine through Nationwide, is £10.17 per month for 25 years and offers £180k for death and CI.

not wanting to alarm you but i would check that you definitely have life and critical illness cover for £10.17 a month. Unless you took it out a good while ago

Reason i say that is i did a quote for an 18 year old yesterday for £175k of cover (life and CI) over 25 years and the cheapest i could get for him was £22 a month on a reviewable premium. That's quoting from 45 different companies!

Jez · 9 Jul 2009 at 12:28

I have death and CI for £100k (aged 23) through my employer which shows on the P11D as a BIK of £110pa.

~£10pm, makes £50 seem expensive in the OP.

Burned_Alive · 9 Jul 2009 at 12:37

We pay £12 a month for life cover, which will pay off the mortgage (£150k) in the event of death of either of us. We did initially have critical illness cover, but in the end decided against it due to cost and (fingers crossed) the likelyhood of CI at our age (26).

antijoke · 9 Jul 2009 at 12:40

booyaka said:
not wanting to alarm you but i would check that you definitely have life and critical illness cover for £10.17 a month. Unless you took it out a good while ago

Reason i say that is i did a quote for an 18 year old yesterday for £175k of cover (life and CI) over 25 years and the cheapest i could get for him was £22 a month on a reviewable premium. That's quoting from 45 different companies!

I took it out about 3 years ago, I have both I checked the paperwork carefully (as it was taken out to provide for my family).

booyaka · 9 Jul 2009 at 12:42

anticonscience said:
I took it out about 3 years ago, I have both I checked the paperwork carefully (as it was taken out to provide for my family).

good stuff - stunningly good deal then

paul_warren · 9 Jul 2009 at 12:45

booyaka said:
£350k of life cover (£30 a month) and £150k of critical illness cover costing me about £20 a month. Started the CI cover when i was 24 years old hence why it's cheap! all to age 60.

Both plans are joint life with the wife.

I am an IFA so i see the need for life cover/critical illness cover as i speak to clients about it all the time.

Some people agree with it but where there is kids involved/large debts or mortgages and non working spouses etc it is imperative to consider/get at least some life cover.

The cost of CI cover is approx 5 times that of life cover as you are statistically 5 times more likely to have a critical illness during the term of the plan that you are to die.

Not pitching for business or anything like that but if anyone wants some quotes (no advice or strings attached) happy to supply some figures (independent so no attachement to any companies, just the best/cheapest quote)

I didn't know you could get seperate CI cover - we have a life cover of £250K at about £25 per month, but I would be interested in who I get can some seperate CI cover with??

antijoke · 9 Jul 2009 at 12:52

booyaka said:
good stuff - stunningly good deal then

I know, that's why my partner and I both took it out.

Was about £10-£15 cheaper than anywhere else, not sure if the fact we had bank accounts with them, CTF accounts, and home insurance helped.

unknownsock · 9 Jul 2009 at 12:56

Im about to turn 21, tbh i have never thought about this.

My partner had to push me to get contents insurance for our flat

Manlove is my forte · 9 Jul 2009 at 13:03

I have life assurance at 4* my salary and critical health at 75% of my salary for 4 years after the illness from work.

I have also got Life insurance @ £30pm which will pay out about the cost of the outstanding mortgage debt should either Miss K or I suffer the unimaginable.

I do not have a separate CI policy for Miss K and myself outside of work, but am thinking about getting one.

I'm 27 and have a child and a mortgage. So it makes sense that we take out the cover. It is an investment of sorts however a very counter intuitive on, as the investment only comes to fruition if you have something nasty happen to yourself or a love one.

According to Scottish Widows I think the average age of claimants is something like 48 :eek:

Also if you take out the cover at a young age, it will be cheaper for you in the long run than taking it out at a more senior age (so I'm told) This is due to inflation and the elderly being greater risk.

Burned_Alive · 9 Jul 2009 at 13:15

Manlove is my forte said:
Also if you take out the cover at a young age, it will be cheaper for you in the long run than taking it out at a more senior age (so I'm told) This is due to inflation and the elderly being greater risk.

I would think the extra cost could be offset by not taking it out so young though? If you see what I mean.

[DOD]Asprilla · 9 Jul 2009 at 13:17

I've got the decreasing term assurance on the mortgage and then I've got 250k cover. If I get a CI then I get 150k of that and then the additional 100k if it kills me. If I just die I (Mrs Asprilla) gets the full £250k.

Can't remember what it all costs ne, but it's less than £100 a month.

Mrs Asprilla just has her work insurance which I think is £100k in case of death.

Oxide™ · 9 Jul 2009 at 13:18

Jez said:
I have death and CI for £100k (aged 23) through my employer which shows on the P11D as a BIK of £110pa.

~£10pm, makes £50 seem expensive in the OP.

I have this with my work as well but double check this also covers you outside of work. Mine will only cover me if something happens to me at work, won't even pay out if I'm in the car going to and from work hence why I got a seperate joint level term policy with Aviva. I'm 29 and pay £20pm until I'm 65 with a payout of ~200k.

Reading this thread though , I'm now interested to get a seperate CI policy but will need to find out quotes and find out more information on it.

Manlove is my forte said:
I have life assurance at 4* my salary and critical health at 75% of my salary for 4 years after the illness from work.

I have also got Life insurance @ £30pm which will pay out about the cost of the outstanding mortgage debt should either Miss K or I suffer the unimaginable.

I do not have a separate CI policy for Miss K and myself outside of work, but am thinking about getting one.

I'm 27 and have a child and a mortgage. So it makes sense that we take out the cover. It is an investment of sorts however a very counter intuitive on, as the investment only comes to fruition if you have something nasty happen to yourself or a love one.

According to Scottish Widows I think the average age of claimants is something like 48

Also if you take out the cover at a young age, it will be cheaper for you in the long run than taking it out at a more senior age (so I'm told) This is due to inflation and the elderly being greater risk.

I think this is true if you take out a Level Term policy which means the payments are the same for the life of the policy (lol see what I did there) as opposed to it being a policy which gets its premiums reviewed every 2 years or so (then it will increase in accordance with inflation.

Please correct me if I'm wrong

booyaka · 9 Jul 2009 at 13:20

paul_warren said:
I didn't know you could get seperate CI cover - we have a life cover of £250K at about £25 per month, but I would be interested in who I get can some seperate CI cover with??

loads of companies offer CI only plans. However, normally to tag on the same amount of life cover only increases the premium a tiny amount.

Example

100k life and CI cover for 25 years on a 25 year old next birthday - cheapest quote from all companies i quote on (45 odd companies ) - £16.50 on a reviewable premium basis (premiums reviewed every 5 years)

£100 CI Cover only for 25 years on a 25 year old next birthday - cheapest quote from all companies i quote on (45 odd companies ) - £15.70

So as you see - bugger all in it and your aswell taking it with life cover for the sake of 80p in this instance.

booyaka · 9 Jul 2009 at 13:23

Oxide™ said:
I think this is true if you take out a Level Term policy which means the payments are the same for the life of the policy (lol see what I did there) as opposed to it being a policy which gets its premiums reviewed every 2 years or so (then it will increase in accordance with inflation.

Please correct me if I'm wrong

Correct - generally if it's just life assurance the premiums are the same for the full term of the plan.

If you include CI cover it can be done on the same fixed premiums basis OR it can be done on reviewable premium basis where by the premiums generally start cheaper but can increase at each review point (normally every 5 years) policy dependant.

Admiral Huddy · 9 Jul 2009 at 14:07

Company plans are a good idea assuming you'll be with them the term you need. If you leave and your older then the policy can be quite expensive as the premium is increased on each birthday.