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    Default Life insurance

    Hi,

    Just found out that one of my kids might need financial support for the rest of their life. Of course I'll happily provide but thinking about what happens if I die, my wife works in PS so doesn't earn a lot and I've got 4 kids, don't own a property and only a small war chest.

    I've got a personal life insurance policy for 1m and wanted to increase it 2m. Thought I should take out the second policy with a different provider rather than putting all my eggs in one basket.

    Any one else done something similar? Planning on going to an IFA to get it done properly but thought it would be useful to get some insights on here.

    Thanks

    VC

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    I'm inclined to agree, whatever price you got for the old policy was based on your age and risk profile at the time, this price probably goes up a little bit every year on your birthday.

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    Quote Originally Posted by SeanT View Post
    I'm inclined to agree, whatever price you got for the old policy was based on your age and risk profile at the time, this price probably goes up a little bit every year on your birthday.
    Only got it last so the price it is pretty x2 of what I'm paying now. Price isn't my biggest concern, was more thinking about ensuring a payoff

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    Having taken out a policy recently, another small bit of advice is if they start asking for doctors appointments and medical check-ups etc. just move on to another provider as they're obviously looking for an excuse not to insure you.

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    Quote Originally Posted by SeanT View Post
    Having taken out a policy recently, another small bit of advice is if they start asking for doctors appointments and medical check-ups etc. just move on to another provider as they're obviously looking for an excuse not to insure you.
    Had to have a doctors check up for my current plan when I took it out, but considering I've had something on medical history I assumed it was a normal thing.

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    Default Relevant Life Policies

    Are you going for a traditional life policy or thinking about a relevant life policy and sticking it through the company?

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    Quote Originally Posted by Darren at DynamoAccounts View Post
    Are you going for a traditional life policy or thinking about a relevant life policy and sticking it through the company?
    Just traditional life policy - I don't want to complicate anything by involving the company

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    Quote Originally Posted by VillageContractor View Post
    Just traditional life policy - I don't want to complicate anything by involving the company
    If you intend to be contracting for long, this is probably short-sighted. Doing it through the company saves you both corporation tax and dividend tax on the amount of the premium. When I got my relevant life plan it was the same cost as regular life, but much more tax efficient.

    You also may want to look at Critical Illness cover. It's much more expensive but if your family is relying on you, it's a cover worth considering.

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    Quote Originally Posted by WordIsBond View Post
    If you intend to be contracting for long, this is probably short-sighted. Doing it through the company saves you both corporation tax and dividend tax on the amount of the premium. When I got my relevant life plan it was the same cost as regular life, but much more tax efficient.

    You also may want to look at Critical Illness cover. It's much more expensive but if your family is relying on you, it's a cover worth considering.
    Considering the state of the market right now I'm not sure what my plans are, hence why I did it personally. I got a little worried about transferring the policy if/when I closed the company down

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    Quote Originally Posted by WordIsBond View Post
    If you intend to be contracting for long, this is probably short-sighted. Doing it through the company saves you both corporation tax and dividend tax on the amount of the premium. When I got my relevant life plan it was the same cost as regular life, but much more tax efficient.

    You also may want to look at Critical Illness cover. It's much more expensive but if your family is relying on you, it's a cover worth considering.
    I am not sure you can put CI through the company, only life cover, unless this has recently changed.
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