Protection or pension, what should i choose

nessyed

hello,

I am 30 years old and have just purchased my first house with my self employed boyfriend. We are a bit worried on what kind of insurances we need. he has no pension and we have no protection. Money is a bit tight and we need to priritise - pension, mppi, cic, life cover, we cant afford everything what should we do

really appriciate any help

Thanks

dunstonh

If either of you die, could the survivor continue to pay the mortgage on just their own income? If no, then you need life cover.

Your boyfriend is self employed and that gives him a lower state pension entitlement. He will not get any SERPS/S2P and that puts his pension income at £4,381 in todays terms. Not exactly liveable.

So, in reality you need to do both. Life cover has never been cheaper and given you age, you shouldnt be paying any more than around £10-£15pm for the life cover which is nothing on your budget. Your boyfriend (and you at some point) need to make some pension provision but at 30, you can get away with a relatively small contribution and annually increase it until you get there.

Its probably a good time to budget this in now as interest rates are on the increase and that will see a move upwards in your costs (along with fuel and council tax).