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How much Life Assurance?

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Gatser
Gatser Posts: 625 Forumite
Part of the Furniture 500 Posts Name Dropper Photogenic
in Insurance & life assurance
Couple aged 54/52
"Children" 20/18 at Uni.
No mortgage / debts

How much Life Assurance should they have?
I realise there is no correct answer.. but interested in your views please.
Thanks :)
THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
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Comments

  • kingstreet
    kingstreet Posts: 39,271 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Does either of them have no income?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Gatser
    Gatser Posts: 625 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    edited 19 October 2011 at 4:31PM
    kingstreet wrote: »
    Does either of them have no income?

    thanks...
    Man has a salary.
    Wife does not.

    I am guessing but should they take out FIB cover to maintain their expected income until
    State pension is paid at ages 66? (If either dies)
    If the wife were to die, husband would feel less inclined to continue working.
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • ACG
    ACG Posts: 24,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    you might want to do some to cover an IHT amount for your kids depending on how big your estate is?
    You might also want to do some on the male life so that the female life doesnt go hungry.
    Funeral costs.

    Hard to put a figure on it but those are the things that spring to mind.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 119,786 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    How much will they be worse off if either was to die (either as lump sum or income). If income, use 5% of lump sum to replace it. i.e. if £5000 worse off then £100k @5% = £5000 p.a. So, £100k required.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Gatser
    Gatser Posts: 625 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    Thanks...so far.

    I was just looking at a quote for Joint cover, 15 years
    providing £24k pa (level)
    Premiums are £60/month
    Scott Prov.

    Looks reasonable.
    Pension will provide additional income too.
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Gatser
    Gatser Posts: 625 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    Thanks to MSE.com, best quote so far is from MONEYWORLD.:T
    Insurers are Scottish Prov.

    Any other "best buys" I should try?

    CAVENDISH quotes were not as good.
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • ACG
    ACG Posts: 24,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If your looking for the lowest premium you probably wont beat that.

    Theyre not giving advice and its all over the internet so they can afford to take lower commission which in turn reduces the premium.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,271 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    On a nil commission basis, the cost falls to £54.78 so a deal with a broker to pay a small fee might end up better value.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • dunstonh
    dunstonh Posts: 119,786 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    CAVENDISH quotes were not as good.

    That doesnt surprise me. The IFAs (and mortgage advisers) on the board have in the past compared their nil commission terms with Cavendish nil commission terms and I think we all beat them.

    Scot Prov would probably not be my first choice. So, don't let premium be your only guide. No point saving pence when it could cost you in the event of a claim.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Gatser
    Gatser Posts: 625 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    dunstonh wrote: »
    Scot Prov would probably not be my first choice. So, don't let premium be your only guide. No point saving pence when it could cost you in the event of a claim.

    Oh dear.... now I am concerned!

    Are Scot Prov not a rock solid operation to depend on for Life Assurance payouts?
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
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