Reply With QuoteConsider a free pen.
Thinking of buying a life insurance policy for me and my wife. Seems fairly straightforward, using the comparison sites, which refers to big players such as AIG / Zurich.
Something like 30 years with a fixed payout amount.
Any thoughts or advice on things we should be considering? Given it is a long term commitment, feels like should be doing a bit more thinking before committing!
Consider a free pen.
Pardon?Originally Posted by Kingstepper
You used to get a free pen when you took out a policy, iirc?
As always, MoneySavingExpert is a good place to start your research: https://www.moneysavingexpert.com/in...ife-insurance/
If you work in "exotic" locations, Africa for example, check the policy will cover you whilst there. Don't just assume your employers death in service will provide the cover you need.
Just go for straightforward term assurance policies with one of the big UK insurers. I’d go for two individual policies rather than a joint policy.
There are very few restrictions on cover geography wise but things like dangerous occupations and pre-existing conditions may load a premium.
To be honest there isn’t a lot to think about although you may want to write it in Trust (the life company will have a form to do this).
If you are serious about protection you can consider adding Critical Illness to it and taking out an Income Protection policy- you are far more likely to get a critical illness or lose your income because if health conditions than you are to die.
There are good protection brokers out there that will advise at no cost (they get a commission off the insurer) an example being
https://www.usaycompare.co.uk/
Last edited by craig1912; 26th January 2024 at 13:21.
Thanks, very helpful.
I also read the MSE site this morning, which is good.
My 2 pence,
1) take the time to read all the T&C’s of whatever policy you choose.
2) ensure you fill in the medical questionnaire thoroughly, answer every question fully and even if you are unsure if something applies to you then disclose it.
R
Ignorance breeds Fear. Fear breeds Hatred. Hatred breeds Ignorance. Break the chain.
Retired IFA here.
Well worth considering a trust, without one, depending on the cover and your circumstances your estate could end up paying additional IHT.
Suggest 2 policies rather than a joint-life. (Slighty more expensive, but much more protection)
As has been said, critical illness is nice to have but will increase premiums by 4x approx.
Waiver of premium is a good add on. Without it, if you go off long term sick, you might end up unable to afford monthly premiums.
No such thing as free advice...protection brokers earn a commission, but who do you think pays that in the long run?
You could take an identical plan out sans broker and get a better premiums.
Same with comparison websites....policy premiums cost more to cover the costs of the platform.
If you're a self employed director or work for a decent company you could consider a RLP, premiums qualify for tax relief.
For what it would cost it could be well worth speaking to an IFA.
Just my 2'pth
Agree with most of what you have said (I’ve already said most of it further up the thread) apart from the bold.
Very few companies offer dual pricing for protection (same in PMI). In fact it’s sometimes cheaper to get it from a specialist protection broker than direct.
An IFA will need to do a full review (which the OP may not want) which is going to cost more. A good protection broker won’t charge.
In a past life I devised and marketed trust solutions for insurance companies. As others have said, holding the policy in trust will (provided an appropriate type of trust is used) ensure the policy and its payout won’t form part of your estate for IHT purposes. It also means that the policy proceeds can be released and used to pay tax or other necessary expenses before probate is finalised.
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