Help with Life Assurance please

Simongooner1

Hi there

When we arranged our mortgage a few years ago we were sold life assurance and critical illness cover. We were tied in for two years but now the term is over. We are both teachers and are therefore pretty well covered when it comes to job protection. All totalled we pay around £100 per month to Legal and General.

Basically, I'd like some advice on what cover we actually need. Also, is it worth getting a policy that matures at the end of the term?

Any advice would be really appreciated.

Many thanks
Simon

dunstonh

Basically, I'd like some advice on what cover we actually need. Also, is it worth getting a policy that matures at the end of the term?

Any advice would be really appreciated.

We know nothing about your financial circumstances or requirements so cannot give any advice even if board and FSA rules allowed us to do so.

We can talk generically and discuss options but we cant tell you what you need.

With that in mind, most Death in service life cover is not sufficient to meet family protection. Of course it depends on your lifestyles and family but 2-4 times pensionable salary (which is often different to real salary) is usually not enough.

You need to work out how much you would each be financially worse off in the event of each other dying. Then see if the death in service matches that.

Another consideration is that the teachers scheme pays nothing for a critical illness. You may get pensioned off early but the amount may not be as much as you think and it would only be income and no lump sum benefit which wouldnt help regard to the mortgage.

Professionally, I am finding more people are claiming under CI cover nowadays than Life cover and another adviser mentioned the same in a post a few months back.