Life insurance

[joannie10]

can anyone advise me of exactly what I should be looking for when taking out life cover. Sorry I am a bit rubbish when it comes to finance and dont seem to understand it all. The companies I have spoken to I dont really feel make it clear what I require - and are obviously trying to allow me to make my own decision rather than be seen to push anything. I dont really want to have to pay to go to a financial advisor. For a bit of background I am a single, employed person in my 30s paying a repayment mortgage. i have no health issues at the moment. I feel I am paying too much in life insurance as paying a sum a month to a company from when i first took out my mortgage and a further sum to another bank for when I took out a remortgage. Appreciate any help.

[dzug]

If you are single with no dependents it's arguable that you don't need life cover at all. If you should die without paying off the mortgage the house can be sold to pay your debts without causing anyone hardship.

The only thing to think about is that if you DO acquire dependents, the older you are the more expensive life cover is so it could be worth keeping it/some on with that in mind.

[joannie10]

thanks, I feel I should continue with Life cover but feel I am paying too much and not really sure what I am covered for. Should I really perhaps just be taking out a redundancy cover? critical illness cover? If I am taking life cover to perhaps leave something for my family, should it be perhaps be to cover the cost of my home as it stands at the moment and perhaps funeral costs? Sorry........more questions.

[buildersmate]

This sounds like some form of with-profits policy you have. Can't advise you about it but if it is one it can be traded.
Life insurance only can be bought as Term Insurance - for a fixed term of say 10 years. Its very cheap compared to investment type products that also provide life cover. You pay a fixed sum per month that doesn't change ever over the term. In exchange you get, say �100k of life cover. It only pays out when you die. You can stop it at any time in the term and the policy is cancelled. Shop around if you go for it - rates vary between companies for the same risk.

[chitchat]

You should definitely have some form of income protection against loss of income due to accident, sickness or unemployment. As for life insurance, you may not need it but if you do not have a lot of equity in your property it may be worth considering. Otherwise your family could end up with a bill for any other debts and funeral expenses if there is nothing left after the mortgage is repaid etc.

You should go and speak to and independant financial advisor. Not all of them charge and if they do they have to disclose this before they give you any advice.

[joannie10]

thanks to all of you.