I remember one of the life insurance quote I looked at said it will reduce payout if there are multiple policies from other companies paying for the same claim/event. So I guess it is down to small print in T&C. Better will check in my current policy too.
Both the payment and the payout amount are fixed for the duration of the policy. You can get decreasing cover (for example if you want it to cover the mortgage and the payout reduce as the mortgage balance reduces), which is cheaper. Mine is from Legal & General, because it was the cheapest for the cover I wanted at the time. As with any insurance though, different firms will be cheaper for different people under different circumstances. The younger you are when you get the cover, the cheaper it is- friends of mine of a similar age have looked recently and not been able to get near the price I am paying. You can run the comparison sites for this sort of cover https://www.moneysupermarket.com/life-insurance/level-term/ https://www.uswitch.com/life-insurance/level-term-life-insurance/ Oh yeah- one more point; put the policy into trust. This is free, and it means that your payout is not considered part of your estate. This means (a) that there is no delay- the money goes straight to whoever is nominated without having to wind up your estate first, and (b) that it is outside inheritance tax rules. Takes an hour or so of getting your head round the sort of trust you need but it's well worth the investment of time. This is the sort of thing you set up properly once and forget for the next 20 years.
Thanks jules for your info, it' made me consider this life insurance thing more seriously! kudos
Worth checking with your employer if employed by a large company.. I got 10x death in service as part of my pension scheme. I added 125k life and cic for my wife and I and we pay £12 a month salary sacrifice. Covers ends if I leave though.
Yes true, most pay more than this for a mobile phone contract. Where did you get this cover? And is your monthly premium fixed or is it due to increasing after every year?