Anyone got Life insurance?

Associate
Joined
11 Apr 2006
Posts
827
Location
Yorkshire
My wife and I are aged 29 and 28 respectively with no children. I've decided to take out some life assurance for both myself and my wife. We will be paying £25ish each for £250,000 of index linked cover (5%increase each year) until age 90.

Was wondering if any fellow ocuk'ers have had the foresight to get life assurance too and what prompted them? For us it was a combination of realising that taking one out 10 years from now would cost double and that's assuming we don't have any health problems still. One of my wife's friends passed away so it's really prompted us to get various protections in place whilst were young and healthy.
 
Last edited:
Man of Honour
Joined
24 Sep 2005
Posts
35,487
My wife and I are aged 29 and 28 respectively with no children. I've decided to take out some life assurance for both myself and my wife. We will be paying £25ish each for £250,000 of index linked cover (5%increase each year) until age 90.
Not that I've really looked into these things, but that sounds a bit too good to be true?

£600 a year for around 70 years would mean you get a payout of £250,000 for an investment of £42,000.

Am I missing something here? I presume the pay out occurs if neither of you survives to 90?
 
Soldato
Joined
14 Nov 2002
Posts
7,626
Location
Under the Hill
My wife and I have a joint policy which covers first death. In addition her work pension cover is 3 times her salary and mine is 8 times. With three children I find it quite reassuring to know that their home and educational needs are easily covered if the worst were ever to happen.
 
Associate
OP
Joined
11 Apr 2006
Posts
827
Location
Yorkshire
Yeah I'm no financial expert. But I do have an eye for finance and basically my understanding was that all the quoting websites would cover you for a set amount of time of your choice e.g 20, 30, or 40 years....or a set age whether it was 65, 70, 75, or 80.

I thought for ourselves whilst we hope to live a long life I didn't want to get shafted by outliving our policy say living till 81 on policy going to 80years old so I took out policies that cover us till age 90 which is the highest in the insurance market (well short of going for whole of life cover but that would cost is £100 each a month).

It's £250k each and one of us if bound to go by age 90


I have the choice to pay 5% higher premium and then the insurance amount £250k will also go up by 5% thus keeping it in line with inflation. Will prob let it increase for 14 years. The premium will be £50 each and cover will be £500k each and it will allow is to pay the cost as our salaries increase over the next 14 years.

My dads insurance was for £28k took out in the 80's but his policy was only till age 64 and he is 60 now. This is what prompted me to go till age 90.
 
Last edited:
Soldato
Joined
21 Jul 2008
Posts
4,912
My wife and I both have life insurance to cover our mortgage. We have separate policies now, that expire when the mortgage expires (25 years) but we went straight term rather than reducing term.

We are both covered with policies from our work too though. Both at around 4 x salary (6 or something if I die at work). Each policy should cover the full mortgage, so the idea is that if either of us die, the house will be paid automatically, and there will be a lump sum to help out for following few years, as our 2 kids are currently very young it may not be suitable for either of us to return to full time employment immediately.

Income protection is something we don't have. It doesn't really work for me because of the nature of my pay structure.
 
Soldato
Joined
29 Sep 2010
Posts
5,694
I don't just have it, I sell it. :p

If you are scared of out living the policy you can look at Whole of Life cover but don't expect a £250k payout each for £25 a month.

Oh, also - don't go through the banks they are always tied to one provider and you can always find it cheaper on comparison sites.
 
Soldato
Joined
13 Oct 2008
Posts
4,755
Location
SE London Born and Bred
Just been looking into this and also critical illness cover, personal accident cover and income protection cover as I have just applied for my first mortgage.

Broker recommends critical illness and life cover, but I just cant help thinking I'm more likely to be run over or be made redundant than become critically ill.

There is just so much to choose between.
 
Soldato
Joined
3 Aug 2003
Posts
15,917
Location
UK
Ive got it, purely so if I end up deaded my family aren't liable for paying off my mortgage/any debts I have.

Why would they? unless they signed to be some guarantor or something

Your estate and your debts die with you. No one else is liable for them.
 
Soldato
Joined
3 Aug 2003
Posts
15,917
Location
UK
Unless you are married, have kids, a house and would leave your family on hard times if you did die... You don't need life insurance.
 
Soldato
Joined
31 May 2009
Posts
21,257
Why would they? unless they signed to be some guarantor or something

Your estate and your debts die with you. No one else is liable for them.

Conceptually you might be missing the point.
If living in a family home, and that home is owned by a mortgage, the life insurance will pay off the mortgage if you die.
So your family can continue to live in a house, debt and mortgage free.

In your example, your debts and estate die, so your family has nowhere to live upon your death, they are homeless and destitute.
 
Associate
Joined
15 Mar 2008
Posts
1,880
Just been looking into this and also critical illness cover, personal accident cover and income protection cover as I have just applied for my first mortgage.

Broker recommends critical illness and life cover, but I just cant help thinking I'm more likely to be run over or be made redundant than become critically ill.

There is just so much to choose between.

What you will probably find is that the broker is whole of market for mortgage products but for the life assurance and critical illness they will probably only offer you products from one company ;). Don't feel pressured into taking out those products, take some time to do your own research and make a decision. If you are interested in those products then you might be able to get a better deal shopping around.
 
Back
Top Bottom