Confused about Lifa Assurance, Mortgage protection etc..which should we get???

PrincessJR

Hi,

We got married in May and want to get some kind of protection incase the worst happens.

We have a £154k mortgage, and earn 47k jointly per year. I am looking into Life Assurance but there seems so many variations out there, I want to make sure we get the most appropriate for us.

If anyone can answer any of the following questions I would be greatful!

• Would it be cheaper to get a joint policy or seperate ones?
• What is normally cheaper per month, Life Assurance, or Mortgage Cover (in the event of death)?
• What should we base our cover on (mortgage amount or yearly salary)?
• Is there a policy that would cover death and critical illness - and is critical illness cover even worth it?
• Do policies tend to pay your mortgage AND offer some sort of income?
• As my husband is 34 and Im 26 what term should we go for? (we have 27 years left on our mortgage)

Sorry for bombarding this thread with questions but I really want to make sure we get it right!

By the way...we have no children yet.

dunstonh

Would it be cheaper to get a joint policy or seperate ones?

Depends on what your financial needs are. Quite often the life assurance requirements mean that two different sum assured figures are required and that means having a joint plan with an additional single life plan or two single life plans (or segments as some plans allow you to have multiple segments covering different needs within the same plan).

What is normally cheaper per month, Life Assurance, or Mortgage Cover (in the event of death)?

Mortgage cover is just a marketing name for decreasing term assurance. It is life assurance. (unless you are referring to mortgage payment protection insurance)

What should we base our cover on (mortgage amount or yearly salary)?

Depends on what financial needs you are attempting to cover. A capital & repayment mortgage would require a decreasing term assurance but family protection would typically use a level term assurance or family income benefit (or combination).

s there a policy that would cover death and critical illness - and is critical illness cover even worth it?

Most life plans allow you to add in critical illness cover. Statistically, the chance of claims is quite high (not far behind life assurance) and the payout success rate is very good. It's a matter of opinion for most people.

Do policies tend to pay your mortgage AND offer some sort of income?

If you want them to.

As my husband is 34 and Im 26 what term should we go for? (we have 27 years left on our mortgage)

The mortgage term would be fine for covering the mortgage. Family protection will depend on when there is no financial need likely to be left (if there is one to start with).