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  • FIRST POST
    • plasmarb
    • By plasmarb 15th Oct 16, 8:25 AM
    • 92Posts
    • 20Thanks
    plasmarb
    Life Insurance
    • #1
    • 15th Oct 16, 8:25 AM
    Life Insurance 15th Oct 16 at 8:25 AM
    Hi All

    Married 26 with 2 dependants.

    I see a deal on Top Cash Back to recieve £78 cashback if you take out a policy, my question is should I make it the term of the mortgage or do a few years then change to another provider?

    I can get 200k @ £14.98 per month, should I look at critical illness cover too? This pays 60k but costs £35.51 a month instead.

    Thanks all
Page 1
    • dunstonh
    • By dunstonh 15th Oct 16, 1:52 PM
    • 85,144 Posts
    • 50,155 Thanks
    dunstonh
    • #2
    • 15th Oct 16, 1:52 PM
    • #2
    • 15th Oct 16, 1:52 PM
    You should match the life assurance term to the financial need term. You cant assume life assurance pricing will be lower in future or that your medical situation would give you clean rates pricing.

    I can get 200k @ £14.98 per month, should I look at critical illness cover too? This pays 60k but costs £35.51 a month instead.
    You are more likely to claim on the CIC than life assurance. That is why there is such a premium difference.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • NeilyC
    • By NeilyC 17th Oct 16, 1:12 PM
    • 2 Posts
    • 0 Thanks
    NeilyC
    • #3
    • 17th Oct 16, 1:12 PM
    • #3
    • 17th Oct 16, 1:12 PM
    The term of the cover to protect your mortgage should be in line with your current mortgage term, this ensures if your health was to change in the future and you were no longer eligible for cover that your mortgage would be protected in full. Protection policies should be reviewed every few years to ensure they are in line with your current circumstances and still the best option for you. The plans can be amended to reflect any changes you make to the mortgage such as reducing the term etc.

    Ideally you should have critical illness cover to protect your mortgage in full. You are statistically much more likely to become ill during the mortgage term as opposed to pass away therefore I would definitely recommend including the critical illness cover.

    As you have children, I would recommend also having some additional family protection to ensure they are not financially disadvantaged in the event of your death, this could be an additional lump sum payout or a monthly income over and above the cover to protect your mortgage.
    I work for a mortgage and life insurance broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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