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  • FIRST POST
    • g0009348
    • By g0009348 5th Oct 17, 8:59 PM
    • 62Posts
    • 5Thanks
    g0009348
    Life Insurance/Income protection advice
    • #1
    • 5th Oct 17, 8:59 PM
    Life Insurance/Income protection advice 5th Oct 17 at 8:59 PM
    Hello.

    I have a second child on the way and realise I need to sort out my finances to ensure financial security for my family if anything happens to me.

    I earn 43k a year and my partner 8k working 2 days per week. We have no debts and 110k left on my mortgage. I get 3.5 x salary death in service benefit

    I'm not sure what insurance which would be most beneficial to my family and how much cover is needed. Would level term life insurance be ok or would it need to be combined with income/critical illness cover.

    Ideally I would like to ensure my families security and cover until my children would finish further education, so at least 21 years.

    Any advice would be appreciated. My budget would be between £15-20, and I'm a 35 year old, healthy, no smoker.

    Thanks in advance
Page 1
    • Weighty1
    • By Weighty1 6th Oct 17, 9:58 AM
    • 225 Posts
    • 84 Thanks
    Weighty1
    • #2
    • 6th Oct 17, 9:58 AM
    • #2
    • 6th Oct 17, 9:58 AM
    With a budget of £15-20/month you aren't providing yourself with much scope for arranging income protection/critical illness cover on top of life insurance.......
    • Aretnap
    • By Aretnap 6th Oct 17, 11:23 AM
    • 2,845 Posts
    • 2,340 Thanks
    Aretnap
    • #3
    • 6th Oct 17, 11:23 AM
    • #3
    • 6th Oct 17, 11:23 AM
    Life insurance is cheap, but only useful to your family if you die. It's not particularly likely that you'll die before your mid-50s - hence the fact that it's cheap. It's rather more likely that you'll develop a serious long term illness which prevents you from working - how would you and your family cope if that happened? I'd suggest that you look into permanent health insurance, but you'll have to be more realistic about the budget. Depending on your circumstances and how exactly what sort of policy you go for you probably shouldn't expect much change from £50/month - and you could use the change to add life insurance.
    • YHM
    • By YHM 7th Oct 17, 5:38 PM
    • 304 Posts
    • 99 Thanks
    YHM
    • #4
    • 7th Oct 17, 5:38 PM
    • #4
    • 7th Oct 17, 5:38 PM
    Level Term Life Insurance isn't appropriate for Mortgage Protection, unless you are on Interest Only. Decreasing is more cost effective and may provide some savings to put towards your Income Protection needs.

    You need to speak to a Broker that will fully review your circumstances, to tailor a policy / policy's to fit your needs.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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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