confused about life insurance policies!!

alb066

I am a single parent of 2 children, I am 44 years of age and have only now got round to thinking about what would happen when the 'inevitable'!! happens..I have a pension with my work and have a mortgage.

I am looking to take out a life insurance policy to pay for my funeral, pay off any outstanding debts and maybe leave a bit for the kids..not really too sure what kind of policy I am looking for..can anyone help???

dunstonh

I am looking to take out a life insurance policy to pay for my funeral, pay off any outstanding debts and maybe leave a bit for the kids..not really too sure what kind of policy I am looking for..can anyone help???

probably a level term assurance policy or a family income benefit plan (or both) depending on your exact needs. Your pension may have some death in service with it as well.

alb066

Thanks..;)

Will look into both..

lordhaldon

Hi. Great that you are considering buying life assurance. As a rule of thumb, and there are a few! - the calculation is gross salary x number of years until your youngest is 21 years old PLUS any liabilities and any lump sum you want to leave the kids. Term means that you have to die within the term that you choose, again as a rule of thumb, normally until the youngest is 21. Family income benefit is where your beneficiaries get a monthly income for the chosen term. You really should see a good IFA or if you are confident, try one of the comparison websites. Hope this helps.
PS. Don't forget Trusts - especially if its for the kids. It means they get the money without having to wait for Probate. That is just one of the benefits.

Don't take it as advice becuase it's not meant to be, hopefully just a nudge in the right direction.