How much will life insurance cost me?
I would like to get an increasing term insurance to provide for my wife and child.
More information needed! For a start: what is your date of birth? What lump sum/or monthly amount do you want insurance for? What term do you want the insurance for? And have you smoked within the last 12 months? | 12.21.10 @ 22:26
2. We have monthly outgoings of £3,500
3. I don't know. For as long as my wife and child need it?
4. No. I am not a smoker | 12.21.10 @ 22:35
In round figures, I would expect you to have to pay somewhere a little over £30 per month for every £100,000 of lump-sum cover, over a 21-year term. Each year, both the amount of cover and the premium would increase (but you could opt out of the increase, should you wish). For about the same premium you could obtain cover of £1000 a month, again with a 21-year term (payment would be made from the date of claim to the end of the original term).
I cannot be more specific without further details, and these figures should not be seen as a formal recommendation. Do send me an email, or contact one of the other highly respected expert independent advisors who contribute to this website to have a proper discussion. | 12.21.10 @ 22:55
I've just looked at my sourcing system and for £108,953 of life cover over 21 years, it will cost you £6.00 per month. You can either choose level or have the cover and premium incresing with the Average Earnings Index (approx 3%) | 12.22.10 @ 08:39
And for £300,000 over 23 years, it will cost you £14.36. Why 23 years? This is because if your child is 1, then they will potentially be dependent on you until their 23rd Birthday, after they finish university.
Also, remember if you are proposing on yourself, put the plan in trust as this will avoid probate | 12.22.10 @ 08:42
My apologies to everyone! Now if you had been born in 1959 my figures would have been correct.....input error! | 12.22.10 @ 09:14
I would suggest an increasing family benefit policy, where the benefit will be a monthly benefit paid from your death until the end of the policy; for the cover you need this will be cheaper than a lump sum policy. Although of course you may require a lump sum as well to pay off any debts which the family have, and provide emergency funds, as a death often results in significant life changes.
And just be thankful you're a mere youngster compared to Dr Carter's calculations. | 12.22.10 @ 13:36