Life insurance

[Guinness Boy]

As you work in the industry, would you mind giving me a tip please? Mrs P had breast cancer 16 years ago, underwent chemo and radio therapy and had 2 lumpectomy ops but has been clear now for 10+ years. However, the instant we mention the "C" word on any life insurance quote, you can guess what happens. Any thoughts / tips on where we could get a decent quote?

Having said I wouldn't, in your case I would take independent advice. It will be worth the money. D2C policies are normally simple. Your case sounds complex.

What I would say is you may end up with a policy that has cancer as an excluded reason for claiming. If you can't claim for it you shouldn't pay so your premium may end up cheaper thanks to an exclusion discount. Alternatively they may cover it but "rate" that cause making you pay more for the policy. Plenty in the market will cover you under one of the above ways so seek advice.


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[Biscuit Barrel]

I have got my life insurance with Scottish Widow. If either myself or my wife dies, the mortgage is paid off in full and the survivor will receive £25K per year until our youngest child reaches 18 years old.

 

[Weststander]

They get paid commission from the life company...What is valuable is their experience and advice...You could pay a fee for it if you like but most elect for the commission route for protection advice.

Do the rates of commission paid vary between life companies?

 

[mothy]

Good stuff so far thanks.

Thanks for all your inputs. No-one has so far said - don't do it. It's a waste of money
Which has always been my initial reaction. Being in finance I'm quite happy assessing my own requirements for pay outs etc, but unaware of the way the industry works / the best way to get a decent / fair premium without getting a cowboy who won't pay out when it's needed..

 

[bhanutz]

Do the rates of commission paid vary between life companies?

yeah but not massively... A good adviser will show you a comparison which will also show the commission. It is basically a list of life companies that will offer cover..

 

[supaseagull]

I work for in a life claims department for a large insurer. Absolutely suggest you contact an IFA who can provide you with a list of products to suit your circumstances.

I've worked in the Insurance industry for nearly 30 years and in a Claims area for over 25 years and whilst I can't give you any financial advice I'd be more than happy to talk you through what you need to know
Contact me through PM if you have any questions.




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[GoldWithFalmer]

Good stuff so far thanks.

Thanks for all your inputs. No-one has so far said - don't do it. It's a waste of money
Which has always been my initial reaction. Being in finance I'm quite happy assessing my own requirements for pay outs etc, but unaware of the way the industry works / the best way to get a decent / fair premium without getting a cowboy who won't pay out when it's needed..

There is insurance and there is insurance and to be honest aside from car insurance and house and contents i have been reluctant to pay for insurances but life insurance is a one way payment and will not be seen again but then again it's not for you or i so to speak- it's all about the loved ones....

 

[GoldWithFalmer]

Don't wait too long,saw the aftermath of a fatal motorcycle accident in Crawley last week,i drive professionally so i have multi layered insurances with employer-union and personal-long story short (and i see a lot on the roads) it shook me,a reminder how it could be any one of us.....at any time..

 

[bhanutz]

I work for in a life claims department for a large insurer. Absolutely suggest you contact an IFA who can provide you with a list of products to suit your circumstances.

I've worked in the Insurance industry for nearly 30 years and in a Claims area for over 25 years and whilst I can't give you any financial advice I'd be more than happy to talk you through what you need to know
Contact me through PM if you have any questions.




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True...There are different forms of life cover...like Family Income Benefit..Which often gets overlooked and can be very cost effective!

 

[Guinness Boy]

I work for in a life claims department for a large insurer. Absolutely suggest you contact an IFA who can provide you with a list of products to suit your circumstances.

I've worked in the Insurance industry for nearly 30 years and in a Claims area for over 25 years and whilst I can't give you any financial advice I'd be more than happy to talk you through what you need to know
Contact me through PM if you have any questions.




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There are quite a few vested interests appearing on this thread. A big insurer or an IFA will always tell you to go through an IFA. That's how the bulk of their business is done. A salesperson for a white label operation or an aggregator (e.g Compare the Market, Go Compare) will tell you to always go direct.

Full disclosure. My involvement is as a systems implementer. I haven't worked for an actual life company for 18 years but I led design and project management on much of the admin system and interfaces used by AIG mentioned in the OP and have also done a system for a leading direct provider.

Direct is cheaper, End of. The IFA market cannot match the commission sacrifices offered on comparison sites. IFAs obviously can sit down and advise you the way a website won't. If you do not trust yourself and find the whole thing massively complex, or have struggled to get cover in the past then, yes, get advice. But if you want your spouse or kids to have a few grand lump sum when you die then go online, buy the cheapest thing possible and don't lie on your declarations. If you do go to an IFA then keep a note of your policy start date. Indemnity commission is paid over 2 or 4 years typically and you may well get another hard sell at the end of that period that isn't as suitable as the first product you were offered.

Life insurance is just risk management at the end of the day. The art - and science - of this is claims predictions (versus investment returns). My very first piece of advice is therefore hopefully one everyone will agree with - disclose everything. It's worth the extra premium to know your claim should be paid out. Accurate claims predictions = better reserving = more efficient pricing. Paying for commission? That depends.

 

[bhanutz]

There are quite a few vested interests appearing on this thread. A big insurer or an IFA will always tell you to go through an IFA. That's how the bulk of their business is done. A salesperson for a white label operation or an aggregator (e.g Compare the Market, Go Compare) will tell you to always go direct.

Full disclosure. My involvement is as a systems implementer. I haven't worked for an actual life company for 18 years but I led design and project management on much of the admin system and interfaces used by AIG mentioned in the OP and have also done a system for a leading direct provider.

Direct is cheaper, End of. The IFA market cannot match the commission sacrifices offered on comparison sites. IFAs obviously can sit down and advise you the way a website won't. If you do not trust yourself and find the whole thing massively complex, or have struggled to get cover in the past then, yes, get advice. But if you want your spouse or kids to have a few grand lump sum when you die then go online, buy the cheapest thing possible and don't lie on your declarations. If you do go to an IFA then keep a note of your policy start date. Indemnity commission is paid over 2 or 4 years typically and you may well get another hard sell at the end of that period that isn't as suitable as the first product you were offered.

Life insurance is just risk management at the end of the day. The art - and science - of this is claims predictions (versus investment returns). My very first piece of advice is therefore hopefully one everyone will agree with - disclose everything. It's worth the extra premium to know your claim should be paid out. Accurate claims predictions = better reserving = more efficient pricing. Paying for commission? That depends.

No vested interest here... Direct is not always cheaper so no..not end of! Buy the cheapest thing possible? oh dear!

 

[Guinness Boy]

No vested interest here... Direct is not always cheaper so no..not end of! Buy the cheapest thing possible? oh dear!

Do explain what extras you get for paying more on a 50K single life policy on standard terms, straight through. Nicer branding?

 

[bhanutz]

Do explain what extras you get for paying more on a 50K single life policy on standard terms, straight through. Nicer branding?

yeah something like that!

 

[Deleted User X18H]

Work in the industry. Some tips:

1) make sure you answer the underwriting questions accurately. Claims depts are always looking for reasons not to pay out and it won't be you contesting it in the event of a life claim. Non disclosure- false answers - is where they start.
2) critical illness cover should now be mostly standardised according to an industry standard disease list so fairly safe to go for the cheapest.
3) some good deals direct to consumer i.e. Buying it yourself. IFAs still get commission for protection sales so as long as you're just insuring your life and not making an investment it's cheaper to buy over the web yourself. IFA policies will have commission expenses as part of the premium calculation.


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A little misleading regarding CIC ,perhaps but certainly important advice.

Critical Illness can have certain deep rooted exclusions. And also outdated, but still valid franchises. And to help explain a policy written on a moratorium basis, an IFA involvement could be vital.

HB&B Cert CII

 

[desprateseagull]

Ger proper, QUALIFIED advice.
disclaimer- i work for an insurance company, but an not authorised to give advice, and do not get any commission.

Some brokers MIGHT sacrifice their commission (part or all) for a lower monthly premium, though a flat fee may be payable to them instead.

Get several quotes, direct from insurers, and brokers- some may have lower rates arranged than going direct, for putting lots of business through.

A general guide-

level term assurance- fixed sum / premiums, payable only if you die (or get diagnosed with a terminal illness- with less than 12 months to live).

decreasing term assurance- usually for mortgages, premiums lower than level term, as the cover amount (hopefully) drops in line with whats o/s on the loan. towards the end, there may be little cover left.

Adding a Critical Illness option can pay out early, should you get cancer, heart attack etc, though is quite expensive, because of the extra conditions (other than death!) it covers..
additional note- consider doing a separate policy for a lower amount (say 1-2 years salary, to give you ££ for day to day bills while getting treatment / off work), and to keep overall costs lower.

income protection plans- if unable to work through illness / injury, is cheaper if you can defer any payout longer- check with current employer if any sick pay in place, IPP can follow on when this ends.


Its always best to disclose any conditions up front- if not relevant / affecting the premium, it will be taken out of the equation.
If you later claim for x condition, that they didnt know about when you applied, the claim may be denied, cover cancelled.

 

[withdeanwombat]

When my mother passed I inherited the life policy taken out on me in1948. She paid 1and 1/2 old pence per month for a £15 policy. Unless I decide to cash it in, my wife becomes the beneficiary.

I'm closely watching for trip wires on the stairs.

 

[Guinness Boy]

Ger proper, QUALIFIED advice.
disclaimer- i work for an insurance company, but an not authorised to give advice, and do not get any commission.

Some brokers MIGHT sacrifice their commission (part or all) for a lower monthly premium, though a flat fee may be payable to them instead.

Get several quotes, direct from insurers, and brokers- some may have lower rates arranged than going direct, for putting lots of business through.

A general guide-

level term assurance- fixed sum / premiums, payable only if you die (or get diagnosed with a terminal illness- with less than 12 months to live).

decreasing term assurance- usually for mortgages, premiums lower than level term, as the cover amount (hopefully) drops in line with whats o/s on the loan. towards the end, there may be little cover left.

Adding a Critical Illness option can pay out early, should you get cancer, heart attack etc, though is quite expensive, because of the extra conditions (other than death!) it covers..

income protection plans- if unable to work through illness / injury, is cheaper if you can defer any payout longer- check with current employer if any sick pay in place, IPP can follow on when this ends.


Its always best to disclose any conditions up front- if not relevant / affecting the premium, it will be taken out of the equation.
If you later claim for x condition, that they didnt know about when you applied, the claim may be denied, cover cancelled.

The get proper qualified advice part contradicts the get several quotes, including direct. Contrary to Steve Foster's post IFAs do not have access to the whole market. Only those insurers with which they have agency agreements with. Online this is further restricted to insurers who have an agreement with the portals the agent uses. Those quotes again are restricted to the portals definition of the cover, and typically have to return a result back in three seconds.

Newer d2c players like Beagle St for example won't even entertain dealing with IFAs. So people need to understand that qualified advice is limited to a smaller market than they let on.




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[Deleted User X18H]

For any decent and impartial advice. I'd recommend our own Uncle Spielberg.

 

[Deleted User X18H]

And you can't have enough in my opinion. Especially if you have young kids. Thanks to the pension reform act, many have hundred of thousands in life cover without even realising.
..

 

[Lenny Rider]

I would also suggest that critical illness cover is now a must, a self employed friend of mine had it and then had prostrate cancer and without it his company would have gone under, resulting in even more stress.