Q's on life insurance

SSno1

Hi,
My wife and I are looking to get a joint policy for life insurance (level term) but have a couple of questions. How long would people suggest to get the cover for, we have two kids and a mortgage but also need the money to pay for any bills once the mortgage has been paid? For example if we got it for 20 years would this mean we are tied in for that period paying a fixed amount every month? Also my wife’s mum has had the all clear after being diagnosed with cancer would this need to be declared to the insurers?
Thanks

dunstonh

How long would people suggest to get the cover for

For as long as you have a financial need.

we have two kids and a mortgage

There are two needs there. Almost certainly with different periods required. So, you don't need a level term assurance. You need a decreasing term assurance (if repayment mortgage) to cover the amount and period of the mortgage and a level term assurance or family income benefit (or both) for the family protection.

Combining the mortgage and family protection needs on a single level term is typically more expensive in the long term and could create an unnecessary tax liability.

if we got it for 20 years would this mean we are tied in for that period paying a fixed amount every month?

no. Once set up, it is effectively pay as you go. You can cancel at any time.

Also my wife’s mum has had the all clear after being diagnosed with cancer would this need to be declared to the insurers?

Depends on her age and the wording used on the application but its possible that it would be captured under the brothers, sisters and parents question where it asks "have they ever suffered from....."