Life assurance/insurance advice please

mcdelarich

Hi, I'm after some advice.

I need to take out some sort of life assurance/insurance to cover my mortgage and ensure if the worst happened my partner, or myself, and our son would be protected.

I am not sure how much we would need to be covered for?

Our remaining mortgage is £75,000 and credit card is £5,000. This is the only debt we have.

Is it worth adding critical illness? Also how long would we need cover for? We are both 23, took the mortgage out last year and it is for 25 years at the moment (hoping to overpay in the long term)

We would really be grateful for some advice!

stephenni1971

At the very least you should be looking to have cover in place so that in the event of death of you or your wife, your mortgage would be covered.

If you have a repayment mortgage the simplest way to do this is with a decreasing term policy, that is, as you pay off your mortgage the insurance cover decreases accordingly.

Critical illness cover will pay out a lump sum if you are diagnosed with one of the specified illnesses covered. This form of cover is more expensive than life cover, however given your young age and smallish mortgage is would certainly be possible to look at cover for your whole mortgage amount.

This however is only the very minimum cover you could have... if anything were to happen to you, would your wife earn enough to cover household expenses, childcare etc?

Best thing you could do would be to sit down with an IFA who can look at your whole finances and recommend suitable products to suit your needs.

FStewart

Also, with job uncertainties etc.....Id advise Waiver of Premium benefit

stephenni1971

FStewart wrote: »

Also, with job uncertainties etc.....Id advise Waiver of Premium benefit

Waiver of Premium designed to cover premiums if unable to work through ill health - it is not primarily designed to cover unemployment/redundancy.