home
in

Advice needed for First Time LIFE ASURANCE BUYER?!

Last post Wed, Apr 23 2008, 7:26 PM by charity. 3 replies.
Sort Posts: Previous Next
  •  Fri, Mar 07 2008, 12:07 PM

    Advice needed for First Time LIFE ASURANCE BUYER?!

    Hi there,

    Me and my partner (26 & 25) are in the process of buying a house and we have a 6month old daughter. We have never had life assurance cover before, but know that we do need it. The FA who has helped us get our mortgage is a nightmare and he said he would come back soon to help us. To be honest I don't want his help as I can't stand him and also we can find our own cover! As this is our first time of requiring this, can anyone give me advice on who we could use and what type of cover we should go for, as we really haven't a clue. Be very grateful for any advice, comments. Thanks

    x K x

    • Post Points: 20
  •  Fri, Mar 07 2008, 10:18 PM

    Re: Advice needed for First Time LIFE ASURANCE BUYER?!

    Hello there,

    The basic cover that you can take out is life, which usually comes with terminal illness cover which means that it will pay out on first death if you are given less than a year to live. Although this tends to be cheaper, you need to think about how much income you would need if one of you were to die, not just based on the mortgage cost, but also the lost income etc. You may wish to think about death and critical illness, which will pay out if something happens which seriously affects your quality of life. A financial advisor will go through what you would need if one of you were to die, or what you would need to support your daughter if both of you were to pass. You should then review your cover every year in line with your change in circumstances.

    Although you can get some very cheap quotes for life cover, I would reccomend going with a reputable provider, such as Legal and General or Norwich Union as many companies will find an excuse not to pay out, for example if they discover a hereditary illness in your family which you were unaware of. This is the last thing you need if you (heaven forbid) have to cope with the death of a partner.

    Getting a quote direct from a provider is cheaper, but if you get one through a financial advisor they can go through a review with you and you can get the most suitable cover. I would approach another fa, you shouldnt have to wait for anyone!

    Hope this helps

    Good luck!!

    • Post Points: 20
  •  Wed, Mar 12 2008, 12:56 PM

    Re: Advice needed for First Time LIFE ASURANCE BUYER?!

    Hi Wallis,

    Thanks for the advice. We have decided on Legal & General as they have actually come up with a good price compared to others. Buildings & Content insurance and life insurance now sorted, just need pet insurance now!

    Thanks alot

    K :)

    • Post Points: 20
  •  Wed, Apr 23 2008, 7:26 PM

    Re: Advice needed for First Time LIFE ASURANCE BUYER?!

    Agree with the advice so far.Rough rule of thumb:

    As a minimum ensure all debts can be repaid in the event of death or critical illness.If it is to cover your mortgage you need DTA ( decreasing term assurance) .

    Really life assurance is to replace your income untill your child reaches 18 so again rough rule of thumb look at 10x annual salary.

    • Post Points: 5