UKC

Have searched through the forums on the above subject but not really found an answer to my question.... We had an appointment with the finance man last night to go over insurances but TBH I found it all a bit bamboozling! I know that my work pay out 4 x my salary upon death so based on this is life insurance going to be worth it? Especially as the quotes are already £62 without a climbing load added ontop?

Just wondering what people's thoughts were?

In reply to Rowie B:

All depends on your responsibilities Rowie.

My own life insurance is fairly low, if I snuff it then my wife and kids will be well looked after by my pension scheme. If I get a critical illness however... that would be another matter, after 6 months I'd be on 50% pay, another 6 months and that would be it. So I have taken out a Critical Illness policy.

As for my wife, if anything happened to her then that would present financial problems for me, mainly surrounding childcare while I was at work. So again, we have a policy to cover that one.

Bloody expensive way to help you sleep at night, mind.

In reply to DougG:

Thanks Doug. Our sick pay policy is the same although I think that after 6 months they review each case individually but 50% pay would be the norm. It just all seems to add up to a lot of cash for peace of mind!

In reply to Rowie B: hi rowie. is the £62 per annum or month. if per month your gonna be paying well over the odds as far as im concerned. i pay under £10 per month and that covers me if i die climbing.

In reply to rayjm:

That was per month (joint cover). You are 10 years younger than me so that would explain it being lower but wouldn't have thought it would be that much. Guess it also depends how much the cover is for. Who is yours with?

In reply to Rowie B: Critical Illness Cover - DO NOT BOTHER !!!

In reply to Rowie B: its a local company to me called newbay. it'll leave my missus and kids with 100,000 if i pop me clogs

In reply to Rowie B: Try Combined Insurance Company of America, I've had a policy for a couple of years and made a few small claims for broken toes/fingers with no problems.

The were recommended to me by a friend who ended up in a wheelchair after a motorbike crash in the Isle of Man TT, they paid him out a good 6-figure some which has enabled him to live comfortably (all things considered).

In reply to davros999:

Had a look at their website but couldn't see any mention of a UK office?

In reply to Rowie B: For life cover have a look at www.theidol.com
they have always given lowest quotes when I checked. Quote is based on age / sex / and term.
I insured myself and my wife for term equal to when kids finish UNi and leave home (please!!!)

I worked out the amount of cover we needed by the amount of lost earnings etc if I died (and ditto for wife's covers) less my 4x salary company cover.
Term insurance for 10 to 20 years is pretty cheap.

Critical Illness is a completely different thing. The likelyhood of a successful claim is low, check out the small print, the commision is very high. The qualifying illnesses and the conditions attached to these is where they get you. It is fairly rare for someone to go off sick permantly with a "nice" clear cut critical illness. Personnally I think its a rip off.

Permanent Health Insurance is slightly better but again the small print is the key. Does it payout if you cant do the job you are doing, or a similar job, or any job - hell of a difference.

Commission is highest to lowest on Pensions / Critical Illness / PHI / Group Life.

Company PHI costs a fraction of PHI taken out personally.

I would get a few Term Life policies. Depends on your circumstances but if married, earning and kids and kids say 5 then a short term policy say 5 years to get spouse through initial period. A policy for say 15 years to get kids through school / uni. Fixed level of cover since it will decrease in real terms and thats what you want. Also premium constant so that will decrease in real terms.

In reply to Rowie B:

I also have accidental injury and life policy with Combined Insurance comapny of America. They have local reps and I'll dig out my reps card and give you that if you're interested. I've made one claim and they paid out no problem.