[windows_chepstow]

If you've a wife/partner; have kids; people who rely on your income; this is the foundation of your financial planning; no matter what occupation you have.

You should pay for your life insurance before you pay for anything else; it's the number one priority bill.

To work out how much life insurance you need, you should plan on at least 10 X your annual income.

So if your profits are 20K per year, you need 200K's worth of life insurance.  If you don't smoke, I reckon this would cost you around £20 to £25 per month.

I think I got mine from The Times.  They have, or did have a 'Best Buy' section and it worked out really cheap compared with the payout.  (It's a while since I've read The Times).

Don't confuse life assurance with life insurance.  Life insurance is extremely cheap, but not a savings vehicle.  The only time 'you'll' get a payout is when you die. 

Life assurance may sound more attractive, but it's more expensive and the life cover is no-where near as good.

In light of Andrew's post, I bet you can guess why I'm posting this.

What would happen if you died in a car crash tomorrow?  How would your dependants cope?

If your life isn't insured, ensure you buy The Times this Sunday and order a 'best buy' life insurance policy. 

Your loved ones deserve it!





 

[mark f]

yep good post tosh. My wife keeps trying to bump me off cos she will be loaded but im still here!

[windolene]

Hi

Tosh , I have just posted a reply on the other site regarding life insurance suggesting that taking out life insurance is an alternative to the problems of setting up a benevolent fund for window cleaners. Did not feel that the response to this was  positive so left it there.

The post... please donate.

I did not feel that I was Insensitive as the post had moved on from the original posting.

Kevin WINDOLENE.

[windows_chepstow]

Hi

...suggesting that taking out life insurance is an alternative to the problems of setting up a benevolent fund for window cleaners...

Kevin WINDOLENE.

Being ex-army, I was a member of the Army Benevolent Fund, where we paid £3.00 per month and if we died our next-of-kin got around £1000 depending on if you were married or not.

Total naff!  How far does a grand get you these days?

You need to be properly insured. 

If I 'pegged it' tommorow Wor Lass would get £200,000, which would hopefully see her alright; for a bit anyway; she likes to spend!

I've also two 'brats' from a previous marraige, and they'd get the same(ish), or at least my ex-wife would, but hopefully my kids would benefit too.

Both policies only cost around £30 per month in total.

My Geordie-Grandad died without life insurance and left my Granny in poverty. 

Don't be a numpty; get insured.

[Andrew McCann]

I wholeheartedly agree with Tosh!!!


NEVER say "It won't happen to me"  It can.. in the blink of an eye. I know this from experience. It was nothing to do with window cleaning/ladders etc. Many moons ago a friend of mine was "taken" in an instant. Young wife and 2 young children and no life insurance. I know that the saying goes that money cant buy happiness but it sure can help lessen suffering. I went and got my life insurance sorted out the day after that happened.

Andrew

[beefy]

tosh who are your policies with, sound good cheers

[steve k]

Tosh, equally important is a will...especially if you have children.
You can leave money to your children from the previous marriage in a trust fund managed by 2 people who you name and have the ok from. These will release money to your kids up to the age of 18 or 21 (you specify) as and when necessary and BOTH trustees signatures are required...this prevents 1 person siphoning off the money. This set up is for kids under 18...when they reach 18, the remainder of the cash is theirs.

This is also the set up if both parents were to die.
Also, if the above were to happen, a will sets out who you want to be legal guardian of your children. If you do not have this set up and the family is squabbling over guardianship, the state can take over accommodating your children until the argument is resolved.

[Londoner]

Right On Tosh.

One big bit of advice for anyone taking out life insurance is to make sure you disclose all the facts about your job, past medical history etc.

If you don't they can refuse to pay out because you lied to them. And they will.

[alansavvi]

As someone who worked in finance for more than 8 years before going into window cleaning, i recommend that you take advice from an IFA not this forum for life insurance.

There are many other things to think about as well as price!

Tosh, well done for bringing this up but be careful about advising even if you feel that it is a suggestion. Regarding your calculation 10x, this is good but does not take into account any liabilities or other policies such as pensions. £200k of insurance is good but not if the mortgage is 200k, she wont be abe to afford the council tax. Rather than suggest a calculation IFA's stress to a client what quality of life do they want to leave there family. So it could mean the house paid off and 200k, this to maintain the standard of living until the youngest child is 18. It may sound like a lot but it is not when you work out what is missing. So they may need 400k. That cheap company may not be so cheap now or may not insure that high.

Life assurance, which manly are whole of life plans are meant to be used for savings and tax avoidance trusts. Assurance means the event will happen, ie it will be paid out. Insurance is a gamble. If you live longer than the policy you lose. Thats why one is more expensive than the other.

Best to seek advice from a professional not something that will be lining tomorrows fish and chips. Your family are worth a little more time!

[Paul Coleman]

If you've a wife/partner; have kids; people who rely on your income; this is the foundation of your financial planning; no matter what occupation you have.

You should pay for your life insurance before you pay for anything else; it's the number one priority bill.

To work out how much life insurance you need, you should plan on at least 10 X your annual income.

So if your profits are 20K per year, you need 200K's worth of life insurance.  If you don't smoke, I reckon this would cost you around £20 to £25 per month.

I think I got mine from The Times.  They have, or did have a 'Best Buy' section and it worked out really cheap compared with the payout.  (It's a while since I've read The Times).

Don't confuse life assurance with life insurance.  Life insurance is extremely cheap, but not a savings vehicle.  The only time 'you'll' get a payout is when you die. 

Life assurance may sound more attractive, but it's more expensive and the life cover is no-where near as good.

In light of Andrew's post, I bet you can guess why I'm posting this.

What would happen if you died in a car crash tomorrow?  How would your dependants cope?

If your life isn't insured, ensure you buy The Times this Sunday and order a 'best buy' life insurance policy. 

Your loved ones deserve it!

I would like to add to this post in case anyone has problems with obtaining life cover.  Due to my medical history, I had lots of trouble obtaining life assurance or life insurance cover.  However, I found that decreasing term assurance (insurance??) was easier to obtain.  Although this will never pay anything out unless you die, it can still provide a good degree of cover - and it is cheap.  You take out insurance on your life.  The premium remains static but the amount insured decreases each year.  This is more typically used to cover outstanding balances on mortgages but doesn't have to be so.  This sort of policy may be useful for someone who anticipates that the outgoings will start decreasing in the next few years (children leaving home, mortgage paid off etc) and who has trouble getting level term assurance or more standard life assurances.  A lot of companies will combine critical illness cover with it but be aware that if the critical illness part of the policy pays out, it usually terminates the rest of the policy.  If you feel after a few years that the policy you have taken out is inadequate, you can always take out an additional one.  Be aware though that the price will be higher as you will have aged a bit and also, if you have been ill in the meantime, there may be exclusions for certain medical issues.
Although this forum may be OK for a general idea, it is definitely better to speak to someone who knows the industry - preferably someone who isn't tied to one company's products.

[windows_chepstow]

As someone who worked in finance for more than 8 years before going into window cleaning, i recommend that you take advice from an IFA not this forum for life insurance.

There's two types of INDEPENDANT Financial Advisor:

1.   Fee only.

2.   Commission based.

There's also an other type whose commission based, but not independant; he/she is tied to one particular company, such as Prudential, and can only sell you products from that company.

Choosing a financial advisor is a whole different kettle of fish; worthy of a new thread in itself.

But I reckon, with a little bit of research, the best way to purchase a simple product like life insurance is via the best buy guides in the papers.

I've been stung by a financial advisor in the past, and he was no professional; so beware of men in suites who seem like 'good blokes'.

I once read an analogy about financial advisors, comparing them to doctors.  It went along the lines of:  Imagine you had tonsilitis and your doctor has several different anti-biotics he could prescribe to you. 

Just say an anti-biotic called 'Number 1' suited your needs best.

But, the doctor gets paid far more if he prescibes another.

Which anti-biotic do you think you'll get?

[Paul Coleman]

As someone who worked in finance for more than 8 years before going into window cleaning, i recommend that you take advice from an IFA not this forum for life insurance.

There's two types of INDEPENDANT Financial Advisor:

1.   Fee only.

2.   Commission based.

There's also an other type whose commission based, but not independant; he/she is tied to one particular company, such as Prudential, and can only sell you products from that company.

Choosing a financial advisor is a whole different kettle of fish; worthy of a new thread in itself.

But I reckon, with a little bit of research, the best way to purchase a simple product like life insurance is via the best buy guides in the papers.

I've been stung by a financial advisor in the past, and he was no professional; so beware of men in suites who seem like 'good blokes'.

I once read an analogy about financial advisors, comparing them to doctors.  It went along the lines of:  Imagine you had tonsilitis and your doctor has several different anti-biotics he could prescribe to you. 

Just say an anti-biotic called 'Number 1' suited your needs best.

But, the doctor gets paid far more if he prescibes another.

Which anti-biotic do you think you'll get?

That's why it is probably better to go for a fee only independent I suppose.  The initial outlay will probably be higher but, hopefully, you do end up with the most suitable product.  I don't know how much (if any) of this goes on but there could always be the risk of an adviser getting an unofficial backhander from a company.  The daft thing is that you used to have to sign a form to say that you had received best advice.  If you knew enough to be sure of that, you wouldn't need the advice in the first place.

[alansavvi]

Tosh

You are talking tosh! Are you saying that just because you have had a bad experiance with one advisor that everyone should buy from the newspapers.

Stick to moderating window cleaners, what you say i find offensive and you could get yourself and this forum in trouble by dispensing financial advice when you have neither the qualifications or the brains!!!!!!!!!!!!!

[alansavvi]

There's two types of INDEPENDANT Financial Advisor:

Another thing, an advisor has to show you the relevant commissions so you are not advised to take the best one just for him.

But i had clients like you, give them somtehing to read and they would just ignore it!

1.   Fee only.

2.   Commission based.

There's also an other type whose commission based, but not independant; he/she is tied to one particular company, such as Prudential, and can only sell you products from that company.

Choosing a financial advisor is a whole different kettle of fish; worthy of a new thread in itself.

But I reckon, with a little bit of research, the best way to purchase a simple product like life insurance is via the best buy guides in the papers.

I've been stung by a financial advisor in the past, and he was no professional; so beware of men in suites who seem like 'good blokes'.

I once read an analogy about financial advisors, comparing them to doctors.  It went along the lines of:  Imagine you had tonsilitis and your doctor has several different anti-biotics he could prescribe to you. 

Just say an anti-biotic called 'Number 1' suited your needs best.

But, the doctor gets paid far more if he prescibes another.

Which anti-biotic do you think you'll get?

As someone who worked in finance for more than 8 years before going into window cleaning, i recommend that you take advice from an IFA not this forum for life insurance.

[windows_chepstow]

"You are talking tosh! Are you saying that just because you have had a bad experiance with one advisor that everyone should buy from the newspapers.

Oh, put your handbag away.

I am saying that for simple financial products, such as straightforward life insurance, the newspaper's best buy section is spot on for this type of product.

Why pay a Financial Advisor £200 for a product which may only cost you £100 to £200 per year?

If you want a full financial health-check, then that's a different matter.  Then you're best getting an IFA (but how you get your IFA is still a different thread).

Remember, there's IFAs out there who'll miss-sell you financial products.  A quick Google shows the following:

 http://money.guardian.co.uk/pensionsmisselling/story/0,,781339,00.html

http://money.guardian.co.uk/pensionsmisselling/story/0,,595196,00.html

From one of the above links:

Mainstream life insurance companies have maintained a wall of silence as the government moves towards a two-pronged attack on old practices dating back decades which it sees as detrimental to consumers… blah blah… - primarily endowments, pensions and other products including with-profits policies which have been at the heart of mis-selling scandals including endowment mortgages and personal pensions.

There's a wealth of information which proves the financial services industry isn't exactly a clean-cut professional one which Caustic believes it to be.  There are cowboys out there and it's shown itself not to be an honourable business.  It's easy to Google for the miss-selling cases.  Literally thousands of people have been miss-sold unsuitable financial products.

As someone who worked in finance for more than 8 years before going into window cleaning, i recommend that you take advice from an IFA not this forum for life insurance.

I agree though, there's a place for IFAs, but remember that some are dodgier than used car salesmen.

[alansavvi]

Its is not a handbag.

Tosh your insight into this is clearly shown by you discribing life insurance as a simple product.

What about claims history, ever heard of it, should you consider it?

No answers there? I dont think it is a perfect industry but at least everyone in it is qualified not like you, so dont think you can dispense advice which is something you clearly want to do.


How do you know that the paper giving the advice is not getting a backhander or more advertising from the company it recommends. Do you honestly trust the media?

[windows_chepstow]

How do you know that the paper giving the advice is not getting a backhander or more advertising from the company it recommends. Do you honestly trust the media?

How do you know your 'Independant Financial Adivsor' isn't selling you the product that gives him the most commission, over the product that's best for YOU?

It's a tough one (not really - and I can Google for evidence), but I'd side with newpapers like The Times who run a weekly 'best buy' product.

[windows_chepstow]

Caustic,

Tell me about 'claim history', I've not heard of this.

[alansavvi]

So you see the times cant tell you everything, do a google search, you wont find anything!

[windows_chepstow]

So you see the times cant tell you everything, do a google search, you wont find anything!

If I die in ten minutes, Wor Lass is £200K better off, for £15 per month direct debit I pay each month.  (I pay a similar one for my ex-wife, since she's the primary carer of my children.)

Okay, £200K mightn't set Wor Lass up for life, but at 32 she's young, slim and attractive.  Within a few years, (at least) she'd be shacked up with some other bloke.  And why shouldn't she if I'm dead and gone?

And I'd hate to think of her with another bloke, holidaying in Tenby every year at my expense!

At least she's not going to be relying on the State to look after her.

Right now, if I had to pay £200 to see some IFA, for a product that will cost me £15 per month; then that would put me off.

If you purchase life insurance from a newspaper's best-buy guide, it's just a simple telephone call and a bit of form filling.

Caustic,

I used to be the Paymaster for an infantry battalion in Chepstow.  We strongly 'encouraged' all soldiers to go for PAX accident and life insurance, which I think was underwritten by Norwich Union at the time.

It was just a simple form to fill in; that's why we encouraged it.  You purchased units of cover for accident and/or life insurance.

When we deployed on tour, we had different desks for different tasks that the soldiers had to attend.  One of them was the 'PAX' desk, and if a soldier refused to sign up for accident and life insurance, he was 'interviewed' by his OC.  Obviously we had a 100% success rate, and no IFA was present.

The feeling was, how can a soldier call himself responsible for the lives of men and equipment when he can't be responsible for his dependants when he died?  So not having accident and life insurance could affect your promotion prospects; maybe.

It probably wasn't the best policy any soldier could've had, but it was better than NOTHING.  The simplicity of it - just a quick form and paid directly from your wage - was the selling point.

I've also assisted in sorting out four soldier's financial affairs after they died, and the worst one was a soldier who died getting his tonsils removed (honest - they couldn't stop the bleeding - apparantly). 

He had two children and wasn't insured.  He was a member of the Army Dependant's Fund, so his wife received about £1000 and a non-attibutable pension (not much).

Caustic, many members here may not be as financially astute as yourself, and the thought of getting an IFA may put them off altogether; since it's another hurdle.

But phoning a best buy life insurance company from the newspaper is easy (as long as you're an average sort of bloke; health-wise).

Surely you must agree that some life insurance is better than no life-insurance?