life insurance...

MissPiggy · 21-04-2008, 08:01

is really cheap!! i have got mine to cover me for five years and to cover me for 100'000 quid and its only £6 a month!!!!

westerdam2 · 21-04-2008, 08:21

Quote:

Originally Posted by MissPiggy

is really cheap!! i have got mine to cover me for five years and to cover me for 100'000 quid and its only £6 a month!!!!

Why take 'life' insurance for just 5 years? isn't it designed to cover you until retirement/mortgage paid off etc?

MissPiggy · 21-04-2008, 08:24

Quote:

Originally Posted by westerdam2

Why take 'life' insurance for just 5 years? isn't it designed to cover you until retirement/mortgage paid off etc?

yeah but its mainly to cover me as i go on the back of my boyfriends motorbike. so taken it for 5 years atm becasue i don;t know if i will be with him in 5 years time-hopefully i will and then i will renew it and take it out for longer. also-the only financial stuff i have at the moment is my car which has just over two years left of paying so i wanted to make sure that was covered!

KenONeill · 21-04-2008, 13:39

Em why? The point of life insurance is to leave your dependants provided for in the unfortunate event of your untimely death.

AIUI you're single, childless, not buying a house and not primary carer for an aged parent. What you should be looking for is "term life assurance", which will pay money on death, or at the end of a period, whichever happens first.

SCVRS · 21-04-2008, 19:01

You may have a level term policy if it is for 5 years. If you plan to renew the policy in 5 years, remember the older you are the more expensive it gets! In other words it will be cheaper to take a 25 year term now than a new policy every 5 years for the next 25. Don't forget also, that should you be diagnosed with something in the next 5 years, you may not be able to get any more life assurance!

I'm a trained financial adviser by the way! If you need any advice PM me (anyone!)

mluton · 21-04-2008, 23:12

Live in debt, die making a profit.

cheezemonkhai · 22-04-2008, 16:03

Quote:

Originally Posted by westerdam2

Why take 'life' insurance for just 5 years? isn't it designed to cover you until retirement/mortgage paid off etc?

It's designed to pay out for your family/dependants if you get killed.

Since she has not mortgage or kids she is a low risk.

postmanpat · 22-04-2008, 16:30

Quote:

Originally Posted by cheezemonkhai

It's designed to pay out for your family/dependants if you get killed.

Since she has not mortgage or kids she is a low risk.

The risk doesn't alter if she had dozens of dependants surely

Or do they weight it on the probability of one of them bumping her off for a quick profit

KenONeill · 22-04-2008, 16:33

Quote:

Originally Posted by cheezemonkhai

It's designed to pay out for your family/dependants if you get killed.

Since she has not mortgage or kids she is a low risk.

Ballcocks. Lorna is a low risk because she is young, female and fit, not because she has low liabilities! I'd pay more for the same cover because I'm older, male and hypertensive; I don't have a mortgage or kids either!

But If I took out a whole life insurance for the same sum assured, it would pay out the same amount on death.

SCVRS · 22-04-2008, 17:09

Quote:

Originally Posted by KenONeill

Ballcocks. Lorna is a low risk because she is young, female and fit, not because she has low liabilities! I'd pay more for the same cover because I'm older, male and hypertensive; I don't have a mortgage or kids either!

But If I took out a whole life insurance for the same sum assured, it would pay out the same amount on death.

Absolutely Correct!! Apart from the male part!! Females are generally more expensive to insure as they are a more complicated beast! True!!!

The price is based on risk as stated above. ie. Smoking status, age, job (scaffolders etc..), driving more than 40,000 miles a year, past medical history, family medical history etc etc etc.....

There is an argument to say that Lorna has no need for life cover. But it is cheap for her so fair play! IF you have any debt and feel like you wouldn't want to leave your family with that debt should your early demise happen, then I think it was a responsible thing to do.

SCVRS · 22-04-2008, 17:10

Quote:

Originally Posted by postmanpat

Or do they weight it on the probability of one of them bumping her off for a quick profit

It is a consideration for a lot of insurance policies!!! Especially when you take out life assurance on another person!!

daiking · 22-04-2008, 17:11

Quote:

Originally Posted by SCVRS

IF you have any debt and feel like you wouldn't want to leave your family with that debt should your early demise happen, then I think it was a responsible thing to do.

If the debt is in your sole name I didn't think it was possible to make your family pay it off after you died?

westerdam2 · 22-04-2008, 17:34

Quote:

Originally Posted by daiking

If the debt is in your sole name I didn't think it was possible to make your family pay it off after you died?

It would come out of the estate (which would include any life insurance payout) and could therefore affect what benefactors (family?) might receive.

Babs · 22-04-2008, 17:40

I took a 25 year policy when I was 18...

postmanpat · 22-04-2008, 17:40

Quote:

Originally Posted by SCVRS

It is a consideration for a lot of insurance policies!!! Especially when you take out life assurance on another person!!

Indeed, so now the boyfriend can pop wheelies without warning and make a nice profit

Loz · 22-04-2008, 23:42

Quote:

Originally Posted by KenONeill

Em why? The point of life insurance is to leave your dependants provided for in the unfortunate event of your untimely death.

AIUI you're single, childless, not buying a house and not primary carer for an aged parent. What you should be looking for is "term life assurance", which will pay money on death, or at the end of a period, whichever happens first.

I work for a life insurance company and I still don't see the point of life insurance!! Lorna thats a complete waste of money, unless your parents particularly want money if you die? They shouldn't need it really. Also, you probably wont get a payout 'at the end of a period'. Especially not for that amount over 5 years, not worth it to the life co. None of our life plans are set up to do that, so any money you pay doesn't get paid out unless you die within the term. Hence why I think it's a waste!

I have life insurance through the company, I reduced it as much as I could and removed my critical illness so that my dental plan would only cost about £1.50 a month - much more worthwhile!

My team leader convinced me not to reduce my income protection lol.

Loz · 22-04-2008, 23:44

Quote:

Originally Posted by MissPiggy

is really cheap!! i have got mine to cover me for five years and to cover me for 100'000 quid and its only £6 a month!!!!

Thinking about it, why on earth did the underwriters agree to this?? You have no need to cover yourself for 100k. What company is it with? You need to be able to justify it, and you can't as you have no mortgage or dependants. Even if you had a mortgage of 100k, if you then asked for 1million cover they should refuse it as you have no need for that amount of cover on the market?

Mr IFA - do you not agree??

SCVRS · 23-04-2008, 08:06

Quote:

Originally Posted by Loz

I work for a life insurance company and I still don't see the point of life insurance!! Lorna thats a complete waste of money, unless your parents particularly want money if you die? They shouldn't need it really. Also, you probably wont get a payout 'at the end of a period'. Especially not for that amount over 5 years, not worth it to the life co. None of our life plans are set up to do that, so any money you pay doesn't get paid out unless you die within the term. Hence why I think it's a waste!

I have life insurance through the company, I reduced it as much as I could and removed my critical illness so that my dental plan would only cost about £1.50 a month - much more worthwhile!

My team leader convinced me not to reduce my income protection lol.

I personally feel that Critical Illness cover is FAR more important than life cover, it is expensive but pays a lump sum in the event of a specified illness or condition being diagnosed (like some cancers and heart attacks)! Also this policy is designed to help YOU!!! Therefore should you claim it will have an immediate impact on YOUR lifestyle. Life cover at the end of the day doesn't benefit YOU at all! You are paying for the benefit of someone else (which is also important!) I know a lot of people including close family that would have benefited from ciritical illness cover but not many where life cover would have made much of a difference financially. My uncle was 36 at took out his first mortgage on his own. 3 months into the mortgage he had a massive stroke!! This condition would have paid out on a critical illness policy, in fact he would have paid £33 a month for 3 months and it would have paid out £95,000!!! He now lives on his own on benefits as he has no other form of income. His left side is also permanantly paralised! Imagine what he could have used that money for! I arranged his mortgage and gave him the forms for the critical illness policy, he didn't fill them in as he thought I only wanted him to take the cover for my own personal commision!!

Trust me critical illness is a VITAL policy for ANYBODY to have!! Sorry for the long winded post and the slightly serious tone of it all

KenONeill · 23-04-2008, 08:15

Quote:

Originally Posted by Loz

I work for a life insurance company and I still don't see the point of life insurance!! Lorna thats a complete waste of money, unless your parents particularly want money if you die? They shouldn't need it really. Also, you probably wont get a payout 'at the end of a period'. Especially not for that amount over 5 years, not worth it to the life co. None of our life plans are set up to do that, so any money you pay doesn't get paid out unless you die within the term. Hence why I think it's a waste!

I have life insurance through the company, I reduced it as much as I could and removed my critical illness so that my dental plan would only cost about £1.50 a month - much more worthwhile!

My team leader convinced me not to reduce my income protection lol.

My father was a bank manager, so I do know the difference between life insurance and life ***urance. The critical point is that life assurance will pay a sum, hopefully more than the premiums paid in, at the end of a fixed term or on death, whereas life insurance only pays out on death!

I would say that everyone should have some life assurance, and at least consider critical illness cover, but life insurance is only worth even considering if you have dependants or significant debt, such as a mortgage.

And I'm betting Lorna now wishes she'd never started this, or at least asked for advice first!

Loz · 23-04-2008, 08:20

Quote:

Originally Posted by KenONeill

My father was a bank manager, so I do know the difference between life insurance and life ***urance.

I know, was aimed at Lorna not you

I know you said she'd be best looking for one that DID do that and I agree! lol!

Re the CI - well, I am HOPING (fingers crossed etc) that I don't get a CI. If I do, well I guess it's tough. Money isn't going to make me any better and I have no dependants or mortgage so I chose not to take it.

daiking · 23-04-2008, 08:26

Quote:

Originally Posted by westerdam2

It would come out of the estate (which would include any life insurance payout) and could therefore affect what benefactors (family?) might receive.

But if I was young with no assets to show for my life a car loan and a dozen credit cards, no one else would be liable for it would they? Obviously from a position of having assets, the debts would be paid first before divvy-ing up the rest.

I read the original comment as saying its sensible for youngsters to have life insurance so that their debts don't have to be paid by the family.

Although I recently read a story about an Irish girl who was a student in Liverpool who died tragically/suddenly. Her landlord was able to chase the parents for the year's rent because they had signed a parental guarantee.

KenONeill · 23-04-2008, 08:48

Quote:

Originally Posted by Loz

I know, was aimed at Lorna not you

I know you said she'd be best looking for one that DID do that and I agree! lol!

Re the CI - well, I am HOPING (fingers crossed etc) that I don't get a CI. If I do, well I guess it's tough. Money isn't going to make me any better and I have no dependants or mortgage so I chose not to take it.

Ok; I was sort of repeating the point, and explaining how I knew (which I didn't know the rest of you knew).

?

cheezemonkhai · 24-04-2008, 01:23

Quote:

Originally Posted by postmanpat

The risk doesn't alter if she had dozens of dependants surely

Or do they weight it on the probability of one of them bumping her off for a quick profit

On some policies (the ones I saw years back when doing some student work), the "risk" alters if you were not single, were a home owner etc as they would be more likely to have to pay out under certain terms of the insurance. Eg the provide living costs for those dependant upon her.

From the family bumping her off line, well I guess that depends if it covers the cost of a new Superb Combi.

21-04-2008, 08:01	#1
MissPiggy Briskodian Join Date: Dec 2004 Location: Wiltshire Posts: 7,190 Members Car: fabia 2 Thanks: 24 Thanked 5 Times in 2 Posts	life insurance... is really cheap!! i have got mine to cover me for five years and to cover me for 100'000 quid and its only £6 a month!!!!

21-04-2008, 13:39	#4
KenONeill Briskodian Join Date: May 2006 Location: Normally in Scotland! Posts: 11,165 Members Car: Octavia TDi110 Thanks: 63 Thanked 558 Times in 546 Posts	Re: life insurance... Em why? The point of life insurance is to leave your dependants provided for in the unfortunate event of your untimely death. AIUI you're single, childless, not buying a house and not primary carer for an aged parent. What you should be looking for is "term life assurance", which will pay money on death, or at the end of a period, whichever happens first.

21-04-2008, 19:01	#5
SCVRS Legend!! Join Date: Oct 2006 Location: Portsmouth Posts: 539 Members Car: 53 reg Octavia Vrs & 57 reg Octavia Vrs 170pd TDi Thanks: 42 Thanked 12 Times in 12 Posts	Re: life insurance... You may have a level term policy if it is for 5 years. If you plan to renew the policy in 5 years, remember the older you are the more expensive it gets! In other words it will be cheaper to take a 25 year term now than a new policy every 5 years for the next 25. Don't forget also, that should you be diagnosed with something in the next 5 years, you may not be able to get any more life assurance! I'm a trained financial adviser by the way! If you need any advice PM me (anyone!) __________________ Silver Mk1 Octavia vRS with Green Panel Filter & Silver Mk2 Octavia vRS TDi pd170 with Green Panel Filter Playstation 3 network id : SCVRS (feel free to add me) Support Briskoda! Join Freedom........You turn green!!!!

21-04-2008, 23:12	#6
mluton Briskodian Join Date: Jul 2006 Location: South Birmingham Posts: 6,400 Members Car: Red Octavia vRS 1.8T (20v) Thanks: 46 Thanked 226 Times in 201 Posts	Re: life insurance... Live in debt, die making a profit. __________________ Support Briskoda----------------------> Red Skoda Octavia V//RS Mods to date: Carbonio CAI Forge 007 DV Aero Wipers Briskoda Stickers KVW100 GB Wheel Inserts RS Tuning Remap Delocked Piper Cat Back Kenwood KDC-W6541U Fli Twin 12" Active Sub Parrot CK3100 *------------------------------------------------*

22-04-2008, 17:40	#14
Babs Briskodian Join Date: Jul 2006 Location: Newport/Preston Posts: 4,153 Members Car: Skoda Octavia vRS Thanks: 216 Thanked 139 Times in 123 Posts	Re: life insurance... I took a 25 year policy when I was 18... __________________ - Andrew Octavia vRS For Sale / Bosch Rotary Polisher For Sale