ProperCharlie

At the moment I have a life insurance policy through the company, as part of my remuneration. However, I now want to cancel this and take out life insurance of my own. I've just had a look at a few policies on line, but must of them are "reviewable". One example appeared to be cheap but by the final year of the term the contributions were over £600 a month!

Also, does anyone know if it will make a big difference to the cost if I make it a joint policy with my wife?

The quotes I got were for £200,000 for a term of 30 years, which would mean I would be 62 at the end of the term. Would that be fairly normal?

tia.

Tiggs

you want a simple term contract. the premiums wont increase and it wont cost £600pm.

T

ps- £200k is VERY little unless you have no kids and your wife would just work in the event of your death.

MattW

Explain why you wish to cancel your employer insurance scheme? I get 4* Salary, it costs me nothing.

ProperCharlie

well strictly speaking, I don't. However as I am in attempting to make savings of approx. £50k per year, I am having to look at the various perks that are being given at the moment.

Tiggs - I have got a kid, possibly will have another. I know £200k isn't a fortune, but I have to make it reasonablty affordable. The wife works part time as it is, so I guess she would continue to work in the event of me poping me cloggs. Also, providing teh business was still going she would continue to get my dividend income. Basically, the choice is to have a higher amount of death only cover or a lower amount of death and critical illness cover.

Tiggs

assuming you are both non smokers the life cover should be very cheap.

if you are dead and she sticks £200k away she can expect an income of..what? 5%? £10k pa? not a lot for a single mum even if she works p/time.

try getting quotes for 20-25 years........will you need cover at 62 of £200k? why? what for?

T

ProperCharlie

Agreed - I'll try again for a 20 year term. That way any kids should pretty much be independent. Critical illness adds a lot to the cost. Obviously it's one of those things that's handy if you are unlucky enough to get one of the illnesses that are covered.

Tentenths

PC

I agree entirely with what T says. If you want max. cover at min. cost look at *guaranteed* premium level term cover. Shouldn't cost anywhere near the figs you mentioned.

Just to give you rough idea. Based on £200,000 (life cover only) for 30 years, male 33 next birthday (assumed non smoker):-

1) Cover fixed at £200k throughout - approx. £19 a month
2) Cover/prem inc. in line with RPI - approx. £20 a month

As an alternative you might want to consider a Family Income Benefit policy. This does the same job as Term, but pays the benefit as a regular "income" instead of lump sum ( but can usually be commuted if preferred at time).

Two possible advantages - cheaper and wife/family don't have potential worry of investing lump sum to produce income. Disadvantage - benefits only payable for balance of 30 years.

3) FIB of £20,000 pa over 30 years - approx. £20 pm
4) £20,000 pa and prem. linked to RPI - approx. £26 pm

Cost of cover for alt. amounts will be roughly propotionate.

HTH

ProperCharlie

Thanks, tentenths.

I take it those figures are for death only rather than Death + Critical Illness?

The income protection thing is certainly worth looking at.

Tentenths

No problem. Yes, death cover only. Rough & ready rule of thumb - inclusion of Crit. Ill. usually results in a prem. of 3 to 4 times death only prem.

If you'd like more precise figures/help just shout.