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Life Insurance....Who do you use?
Now that we're going to be parents, H and I really feel like we need to get some life insurance sorted out, but haven't a clue where to start. So my questions are
- Who do get your life insurance with
- What cover do you have
- how much over all/ how long did you take yours out over/ how much do you pay a month?
Sorry for the boring post, but i've been going to do this for a while now and keep getting confused and giving up.
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Replies
Ours is with our bank - HSBC. They offered a competitive price although I can't remember how much it is. We had an appointment with their financial advisor and went through everything to work out how much cover we would need.
We've not long adapted our life insurance a couple of months ago due to ttc/starting a family
Our life insurance is with Zurich
We have a decreasing mortgage cover, critical illness, income protection and payout as result to death
Originally when we took it out 3 years ago H and I were on same policy but we've now got separate on advice from our financial advisor. Basically if either h or I die the other of us will get the mortgage paid off and £150,000 pay out. If we both died, our child (or nominated person if child is not yet born or too young to inherit) would get mortgage paid off and £150,000 for each of us total £300,000. If either of us get a critical illness mortgage is paid off and we get £500 monthly payment. If one of us is off work long term sick then after 3 months for H or 1 year for me mortgage monthly payment is paid and £500 monthly payment. Ours is the same length as our mortgage is left which is another 22years. I believe in total it's about £65per month. I think many people of our age don't tend to get this high level of cover, but working where I do £65 per month gives me piece of mind. Hope that helps
We are with Aviva and pay £12 a month. This covers both of us. (We are both under 25 and non-smokers, no existing illnesses, for comparison purposes.)
Should one (or both) of us die, the remaining spouse (or next-of-kin if we both pop it) gets £200,000. This would pay off the mortgage and leave about £12k left over (at the moment, it'll be more as we pay off more of the mortgage). It's level cover for 35 years (which is the length of our mortgage) rather than decreasing, so even if one/both of us dies 34 years from now it'll still be £200k. The premium also shouldn't go up, so it'll always be £12pcm we're paying.
We considered critical illness cover, but in our circumstances thought it best to rely on our own savings and family support should that happen. Which is a little risky, but I know 100% that our families wouldn't let us and babba go without if something like that happens and we know both families would have ample means to support us. I did discuss this briefly with my parents before we took out the cover and they also thought that in our case critical illness cover was unnecessary. It would have bumped our premiums to more like £20/£30pcm IIRC and there were so many exclusions that it just didn't seem worth it.
Ours is with Aviva. We have 200k level term life and critical illness cover. The critical illness cover makes it quite pricey but I think it's worth it in my opinion. We pay 60 quid between us.
I used to sell it! I'm with legal and general and have enough to cover the mortgage on our flat plus a but more but I also have 120k life cover from work. My l&g policy is also critical illness as your far more likely to need to claim for that than death. Also bear in mind if you were paralysed for example you'd need to pay for adaptations to the house, carers etc. I pay £22 a month but have has a few issues since taking it out so would cost me a lot more if I started again.
H has £200k life and cic. His is about £30a month.
Things to consider are if one of you died how much income would you lose? Even if you're a sahm you'd need to pay someone to look after the children. If you couldn't work through illness what cover would you need? By the way you are classes as a smoker for insurance purposes if you have used nicotine products at all in the past 12 months so he's cheeky *** once every 6 months used to bump his premiums up by nearly double! And yes they can and do check in the event of a claim.
Joint policies are cheaper but I'd advise separate as I'd you both died your child would likely need more.
There are plenty of comparison sites now
Thanks Ladies. Really interesting. I'm going to speak to H. Think a trip to see the financial advisor will be in order pretty soon! Definately think 2 separate policies would be the way to go for sure!
We have a fair bit, I think all our policies total £2m if both H and I die. A lot through work and then top up policies. We calculated iwhat we'd need to pay off the mortgage and what we'd need to live on for 10 years if one of us died.
Also wWHs about cic.
My H is a life and pension actuary so I let him find the best deals, one is with LV and I forget about the other.
H's cost £50 a month and mine about £30.
this is something we need to look into .
do we need it if we only rent ? we obviously dont have a morgage to pay atm
also OH is always in and out of hospital (clumsy) and recently he has been having chest pains (we are following this up) would that now be classed as a condtion ?
Zebra - IMO yes. If your H (or you) died would you be able to afford accomodation, living costs and childcare on the other's salary? Our view is if that happens we want the other to be comfortable enough to take enough time off and not have the added stress of worryiing about money.
I had to answer a very long list of questions on the phone, which took about 45 minutes, so yes they'll ask about it but it'll up to the individual company and underwriters if they load the policy for it.
BG thanks , will defo look into it now then
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