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Q&A on Life Insurance with Bonnie Burns from Legal & General - ANSWERS BACK

(32 Posts)
RachelMumsnet (MNHQ) Thu 26-May-11 11:16:46

We're inviting you to send in your questions to Bonnie Burns, Product Development Director from Legal & General who is happy to answer your questions on all aspects of protection insurance, as well as wider concerns about financial planning for the future.

A recent survey conducted by Legal & General found the salary the average mum would earn if she was given a wage for the unpaid work she does around the home, including childcare, is £30,032 and if a dad was to be paid for the same work, it would cost £21,306. The same report showed that over 50% of parents are unsure of the financial support available from the Government if anything happened to them or their partner or in the event of a critical or terminal illness.

Bonnie is happy to answer questions on insurance policies available, who needs them and how they work. If you already have a policy in place but aren't sure whether it's still going to work for you, then feel free to send in your questions to Bonnie before midday on Tuesday 31st May and we'll link through to her answers from this thread the following week.

Wordwork Thu 26-May-11 12:33:38

I've noticed lots of adverts on Mumsnet recently for Legal & General Life Insurance, and I guess the webchat is part of the package. When I went to Nationwide to have a discussion about how best to invest my savings there, the only 'extra' that the advisor tried to coldsell me (over and above the savings products I'd asked to disscus) was your life insurance product (I'm pretty sure it was Legal & General). I was talked into initiating an application, and when I decided not to pursue it I received two follow-up calls asking when I was going to return the final forms.

And now a webchat too. Why the hard-sell for this product?

RachelMumsnet (MNHQ) Thu 26-May-11 13:29:23

Hi Wordwork - this is part of a wider project that we're running for Legal&General and you're right that there has been some advertising for L&G on the boards. We agreed to run this Q&A on the understanding that they will answer general questions on life insurance and not attempt to sell any of the legal and General products. It is a subject that comes up on the boards regularly and we thought it would be useful resource for those wanting to know more. Please do report any posts to us that you feel don't comply with this.

jafina Thu 26-May-11 15:53:23

Hello Ms. burns, we have recently set up new life insurance policies for DH and me. We have been advised to put them in trust, could you please explain what the trusts are for and who they suit? Thanks.

whatithink Thu 26-May-11 16:25:06

I was diagnosed with cancer six years ago. I have checkups every 6 months and thankfully have not needed any further treatment. Would I abe able to get life assurance ?

BlameItOnTheBogey Thu 26-May-11 16:55:53

I have a question about getting life insurance if your job means you work overseas. I asked on here before I took up my recent job (in Africa) whether anyone could recommend a company that had a reasonable policy for expats/ people who are regularly stationed abroad. General feeling was that such a thing was almost impossible to find and when you did it was unaffordable. i want life insurance. I'm willing to pay a bit more than average given that I move to a new country every three years. But every company I have approached has practically laughed at me when I have listed countries visited in the last 5 years as e.g. Libya, Pakistan etc.

Do you know of a product tailored to those of us with jobs that require us to move regularly?

reelingintheyears Thu 26-May-11 21:06:46

My Father was ordered by the divorce courts in 1984 that he had to take out a life ins. policy in my Mother's name in the event of his death.

He died in July 2010.

The policy was with Irish Life and was taken out in 1984.

They have been less than forthcoming (to put it politely) with our enquiries about this policy.

I have today received an e mail from them saying they need more information and suggesting that they can do no more.

But i have told them all i know which is what they asked for...including his full name and date of birth and where the policy was taken out...(Northern Ireland)..

We do not unfortunatley have the policy number.

I feel we are being give the brush off as my Mother is elderly and not up for a fight.

Surely it cannot be so difficult to go back through records from 1984 to find out about this policy.

If you can offer any advice i would be very grateful.

Thankyou.

bumpybecky Thu 26-May-11 21:25:48

I know this is a how long is a piece of string question, but...

how much life insurance do we need?

is there a magic formula that takes into account number of children, ages of children, current household income, mortgage amount etc that can let me work out how much cover we need?

we've both got separate life insurance policies and they more than cover the mortgage, but how can I make sure there's enough to pay for everything else should something happen to dh or me?

loopy9 Thu 26-May-11 23:16:57

Ditto to bumpybecky question..

I don't have life insurance, but I know I need to get some (hold off outbound calling me yet!) so here are my questions...

When I take out a policy how quickly does it start (not that I about to bump of DH well not until my life insurance kicks in :-) )..am I instantly covered?

If I cover my mortgage? what else do I need? my mortgage is my biggest bill...so should I just cover this or should I be adding on funeral expenses, living expenses, university fees etc etc?

Is there any small print I should look out for?

Thanks

SoloIsAHotCougar Thu 26-May-11 23:40:42

Hello,

I have an inadequate life and critical illness policy because I remortgaged some years ago and I couldn't afford the insurance payments for anything on top; I'm about £20k short and it does concern me. The reason at the time for me being unable to raise my cover was (and still is as far as I know) that I have, in the past suffered from severe depression (biggest incidence was clinical in 1988 and then pre natal in 1998) and that I have ME/CFS since 1999 which some companies class as mental illness (think it was L&G too!) so they load me meaning that I have no option but to remain vulnerable.
So my question is this: Why, when so many people suffer depression and an awful lot of people have ME, do the insurance companies either refuse to cover us or load the cost of the policy so much that we cannot accept the cover?
Thanks!

mousymouse Fri 27-May-11 07:55:05

I have a live insurance from my time living abroad (was part of the payment package but I kept it on).
I have written confirmation that it is valid as long as my main residence is in the EU. would it be possible to use this policy for a mortgage in case we want to buy property in the future?

Earwiggo Fri 27-May-11 13:29:03

My DH has just left a job where his work pension had a scheme attached which would've provided 3x salary as a lump on his death and a pension of 1/3 of salary to me for the rest of my life.

I realise this was a good deal especially as it was free with his job, but is it possible to replicate this sort of policy now he is working freelance?

microserf Fri 27-May-11 16:54:38

to pick up on SoloisaHotCougar

why do insurance companies get so concerned about anxiety/ stress/ depression for life and critical illness cover? you don't cover any of these things as far as i can see, so why the big deal?

SoloIsAHotCougar Fri 27-May-11 17:29:25

Good question microserf.

WeirdAcronymNotKnown Sat 28-May-11 08:31:10

Hi, here's my question:

When DD was a baby we went into our bank for something else, and were pressured into signing up for life insurance - guilt trips, "you don't want to leave your baby with nothing" etc... A really hard sell. Nothing was asked about our current health - but on looking through the policy it seems that we should have been and that if anything happened to DH, we may not be covered because they didn't know about a pre-existing condition (nothing serious - but still a chronic problem). So we could be wasting our money.

Maybe it's our fault that we fell for it and didn't do anything about this straight away (this was a while ago now blush) but I really feel we were taken advantage of and that the salesman acted unethically. He was actually an ex-colleague of DH's and we thought he'd have our best interests at heart. I gather even if we stopped it we would get no money back, but if we started a new policy it would be more expensive as we are older... So I've no idea what to do for the best. Would appreciate some advice please smile

WhereamI Sat 28-May-11 10:05:22

I'm 48, have 2 dc (aged 6;10) and wonder how much i should cover myself for. We have some insurance that will pay off the mortgage if either me or dh dies, and he has some life insurance, which seems quite high to me in terms of monthly costs (I think about £50 a month - he's 2 yrs older). I don't think we could afford another £50 each month though.

Also, what access to health records do insurance companies have? For instance, do they access overseas health records or is it just in the UK? I'm asking this as when we lived abroad for a while, I was concerned about a potential medical problem. I had some tests but they proved to be negative. There is no medical family history of the condition..I think now I was being hyperchondriac, actually (LOL)..but would we need to declare those tests, even if they proved negative?

LeninGrad Sat 28-May-11 13:07:12

I work FT and have enough cover via that. DP is a SAHM and we'd be a bit stuck if anything happened to her especially whilst the kids are so young. She has a policy that steps down as the mortgage decreases (although we upped it recently, hmm). Anyway, I suppose I need to work out how much cover we'd need based on childcare costs whilst I work and all that, especially for the holidays. Is there a calculator that can help with that?

I guess all this needs to tie into pension provision too. And critical illness cover. Is there a calculator for all this, including government assistance?

Hi,

I am a newly single mother with 3 children.

I have an endowment policy with a sum assured (a little) greater than outstanding mortgage so that's covered.

What else do I need to think about? Presumably if I should die xp would take custody of the dcs. Do i/should I provide him with money for him to raise them? I don't want to line his pockets but wouldn't want my dcs to suffer.

I am currently thinking that as I have reasonably substantial savings due to recent windfall my estate would probably be worth more than I would insure myself for anyway.

However, as best a prediction I can make is that my savings will go into a new home in a couple of years, and then I am likely to need life insurance to cover the increased mortgage.

Am I better off finding life insurance now Qs I assume it will only get more expensive as I get older? Or will any policy I take our now get more expensive as I age anyway?

Ta

Jcee Sat 28-May-11 19:26:51

DP had cancer as a teenager with no need for treatment since he was 15.

He's now ancient 36 and when we bought our house together 8 years ago we were both encouraged to apply for life insurance as he had been in good health for 13 years so the financial advisor suggested there would be no issues

We were both turned down for the insurance - him because of the cancer and me because I lived with him and his health was taken into account on my application as it was a joint one (we are not married) but the insurance company could offer no other reason why I was declined other than the computer assessment said so despite me having perfect health.

At the time it was very distressing for DP and to be honest after many frustrating phone calls with the insurance company (it wasn't L&G by the way) we gave up.

We now have a daughter and I'd like to make sure we are covered should the worst happen. Would DP get cover for life insurance now? Would we be affected by the previous refusal to insure us?

HarrietJones Sat 28-May-11 20:50:44

Dh & I both have LI but have now been advised I need to put mine in trust, how do I do this for 3 children, 2 with xh & dd3 with dh. I have 2 policies & we have a mortgage to consider too?

Second question(sorry)- why does dh have a premium put on his due to a condition that isn't life threatening but as he is checked every 18m they class it as being under treatment. Why is being under treatment for this seen as higher risk than someone who never seeks medical advice?

RachelMumsnet (MNHQ) Tue 31-May-11 13:25:17

Many thanks for all your questions which we are now sending over to Bonnie. We'll be linking to the full transcribed Q&A from this page as soon as we get her answers back.

Marking so I can read the answers

AMML Tue 31-May-11 22:51:40

Ditto.

HarrietJones Sat 04-Jun-11 18:17:33

Bumping this as it fell off my threads

RachelMumsnet (MNHQ) Thu 16-Jun-11 12:20:54

You can read the full transcribed Q&A with Bonnie Burns here

Bonnie Burns Q&A

Anteater Fri 17-Jun-11 01:34:50

It is a sad time that MN is now engaging in debate/advertising/promotion with an insurance company.

I can not afford the rates MN charge to advertise my small business.

What a shame.

FancyALittle Fri 17-Jun-11 17:57:59

To the person whose husband had cancer as a teen - my husband had cancer last year (just had 18 month all clear) and we have managed to get life insurance with no extra charge.

We went to an Independent Financial Advisor who put in three applications on our behalf. All would cover him, one with an astronomical charge per month, one with an unmanageable charge per month, and finally Zurich with the same rate someone who hadn't had cancer would have.

Because the IFA receives commission from the insurance company, there was no charge to us for this service. Of course, we now adore them and are taking all our business to there!

Definitely seek out recommendations for a good IFA you can trust because they are very good at finding solutions to your particular needs.

xiaojree Sat 18-Jun-11 13:26:43

Message deleted

xiaojdd Sun 19-Jun-11 01:31:28

Message deleted

Message withdrawn at poster's request.

xiaojwww Mon 20-Jun-11 02:52:18

Message deleted

HarrietJones Mon 20-Jun-11 10:19:21

Her answer didn't answer my question.

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