Life Insurance Recommendations?

[toomanyquestions]

Hello All,

I've been contracting for the past six months and have decided that I'd like to make this a long-term career. That being said, I need to get my life insurance sorted. I have a wife and a 3 year-old and we currently rent our home. I've been to the price comparison sites, but I'm quite confused. I was wondering if anyone out there had any recommendations? (i.e. life insurer, terms, what to watch out for, what to include in a plan, what to exclude, etc.)

Thanks,
TMQ

[northernladuk]

You would be better speaking to someone like contractor financials that know the way we work.

[Wanderer]

In particular, have a look at key man insurance because it may be a cheaper way to get a policy than paying for it personally.

[psychocandy]

Agree with NLUK and Wandered. Speak to contractor financials.

Might be worth getting a keyman/relevant life policy - that way the company can pay it and theres no BIK. The money is then still paid to your family if you die.

Just sorting one out for myself at the moment....

[SandyD]

My sincere advise/advice ( ) for you is to also think about critical illness insurance perhaps for you and your wife if you can afford it. Its more expensive but if you are the main provider and you get really ill but not dead .. you and your family will be in big trouble financially.

[SandyD]

Contractor financials got me a good mortgage a few years ago, but they couldn't get me a good life & critical illness cover, I had to go somewhere else. Bright Grey.

However, I believe the insurance underwriting has changed now, I tried to look around for cheaper offers but it seems all insurance pricing has changed and it became really expensive now. So am sticking to my old policies.

[BlasterBates]

If you do get any insurance for being out of work, if it is dependent on your earnings, it will be a percentage of your last salary not dividend payment. If you´re paying yourself a minimum salary it won´t be worth having. Life insurance though are fixed amounts independent of earnings, and most sickness cover also pay fixed amounts. Probably "out of work" insurance is too expensive anyway.

[SandyD]

If you do get any insurance for being out of work, if it is dependent on your earnings, it will be a percentage of your last salary not dividend payment. If you´re paying yourself a minimum salary it won´t be worth having. Life insurance though are fixed amounts independent of earnings, and most sickness cover also pay fixed amounts. Probably "out of work" insurance is too expensive anyway.

BB, not sure if that was a reply for my post, but I wasn't talking about insurance when you are out of work, I was talking about critical illness insurance, which you will only get if you have one of the listed critical illnesses in the actual policy e.g. cancer etc. Its nothing to do with your salary, its a lump sum paid to the person in the case of critical illness.

[northernladuk]

If you do get any insurance for being out of work, if it is dependent on your earnings, it will be a percentage of your last salary not dividend payment. If you´re paying yourself a minimum salary it won´t be worth having. Life insurance though are fixed amounts independent of earnings, and most sickness cover also pay fixed amounts. Probably "out of work" insurance is too expensive anyway.

This is what I thought but having a look at this in relation to another similar thread (funny how we get 2 or 3 threads on the same topic per day nowadays isn't it) they can pay dividends as well. Jessica mentioned Aviva and I had a look at their policy and it did include dividends.

Key lesson here is read the policy properly. It is the difference between completely wasting your money and not being covered and getting it right.

[SandyD]

This is what I thought but having a look at this in relation to another similar thread (funny how we get 2 or 3 threads on the same topic per day nowadays isn't it) they can pay dividends as well. Jessica mentioned Aviva and I had a look at their policy and it did include dividends.

Key lesson here is read the policy properly. It is the difference between completely wasting your money and not being covered and getting it right.

Linky plz