what insurance should i get

emma.cook3

I am 39 and a teacher and my husband is 50. we have 3 children under 5 and a mortgage for £40,000. I was looking into life and critical illness, then life and income protection now I just don't know. We can't afford much money at the moment as we work part time and look after the children. I don't want to pay any money unnecessarily but I want to make sure my children and husband are ok if anything happens to me.
I am so confused and frustrated.

ACG

You should see a Mortgage or Financial advisor. They wont charge you a fee and you will get advice based on your circumstances.

Please dont take this as advice its more of a few pointers...
Income protection sounds like it should be high on your list. If you cant afford much now, imagine if one of you were unable to work.
Life Cover is probably also worth thinking about, again if one of you were to pass away it would leave a lot of financial pressure on the survivor. You could also look at having Family Income Benefit as a cheaper alternative.
Critical Illness will pay a lump sum in the event of one of the illnesses. I would probably debate putting this at the bottom of the 3.

Speak to an advisor though if your confused you have nothing to lose. You dont have to go with their recommendations but its probably worth getting some advice.

Jharna

Talk to good insurance agent for proper guidance.

opinions4u

While it will cost more, don't think in terms of the mortgage. Think in terms of the lifestyle you want your family to enjoy after a significant "event".

Life cover: How much are the bills? How much would childcare cost without you? Would family income benefit, providing a guaranteed regular income if you die, provide for their needs better than a lump sum?

Critical illness cover: can be bought cheaply as a "rider" on a life policy, but if it pays out a lump sum for illness it usually voids the life policy. As a stand alone product it will cost more, but this may better meet the needs you have.

PHI: bought with a deferment period that takes in to account how long your employer will pay you for in the case of illness, this cover is probably the insurance most people should have but don't. Give it really close consideration.

For all covers, remember to index them. My PHI cover bought 20+ years ago will pay out £550 a month. I didn't index it and a combination of promotions and ordinary pay rises mean that it's no longer close to giving me the cover I need.

While families have no choice but to adjust if the unthinkable happens, don't underestimate the importance of having cover that makes that adjustment easier. For the sake of not buying crisps, biscuits and cakes at the supermarket appropriate cover can become affordable to most families.

You're right to consider this. Don't keep putting it off (as many do) and make sure that your family can cope if something unfortunate does happen.

dunstonh

Talk to good insurance agent for proper guidance.

You should not speak to an insurance agent. They are expensive and limited to their own product. It should be an IFA or an independent mortgage adviser (or whole of market mortgage advisers who are not insurance agents)

emma.cook3

Thanks for all your advice, I have thought about it and I want my family to have regular income til my youngest is 21. I want this to apply if I die or if I lose my income for any other reason. I do get 100 days full pay and 100 half pay though if I get sick with my present job. I would rather them have a small amount each month but cover every eventuality. I have spoken to several insurance agents but they all talk a lot and seem to want to sell as much insurance as possible. I got a quote for £136 for life and critical illness and it was only for 60,000. I think I would be better off saving this amount in an isa each month or something, then I would definitely get some money whatever happens.

Would family income benefit cover all this or is income protection and life assurance better and if so, how do I compare lots of quotes so I get the best price?

ACG

Could you either post here or PM me if you prefer:
You occupations, how many years until your youngest turns 21, whther you are smokers or not and how much income you are looking to cover (maximum of around 55% of your actual income although it can be less if you wish).

I powered through my paperwork this week so not much on until tues/weds so ill get some quotes for you. Im guessing the premiums arnt that far out based on your partners age. But ill see what comes up and let you know.

Atleast then you can go to a local advisor and see if they can do something similar.

JuicyJesus

ACG wrote: »

Could you either post here or PM me if you prefer:
You occupations, how many years until your youngest turns 21, whther you are smokers or not and how much income you are looking to cover (maximum of around 55% of your actual income although it can be less if you wish).

I powered through my paperwork this week so not much on until tues/weds so ill get some quotes for you. Im guessing the premiums arnt that far out based on your partners age. But ill see what comes up and let you know.

Atleast then you can go to a local advisor and see if they can do something similar.

So are you allowed to conduct regulated business via an Internet forum, then?

maginot

emma.cook3 wrote: »

Thanks for all your advice, I have thought about it and I want my family to have regular income til my youngest is 21. I want this to apply if I die or if I lose my income for any other reason. I do get 100 days full pay and 100 half pay though if I get sick with my present job. I would rather them have a small amount each month but cover every eventuality. I have spoken to several insurance agents but they all talk a lot and seem to want to sell as much insurance as possible. I got a quote for £136 for life and critical illness and it was only for 60,000. I think I would be better off saving this amount in an isa each month or something, then I would definitely get some money whatever happens.

Would family income benefit cover all this or is income protection and life assurance better and if so, how do I compare lots of quotes so I get the best price?

Remember as a teacher the 100 days is working days (if you have been teaching for 4 years) so you actually have 6 months full pay and 6 months half pay. Also you get a good life cover if you die in service (3 1/2 times salary) so remember these when choosing insurance so as not to over insure.

lisyloo

Also bear in mind of on your deaths, there may be a lump sum and/or pension from the pension fund.
First thing to do is to check your existing benefits with your employment.

ACG

JuicyJesus wrote: »

So are you allowed to conduct regulated business via an Internet forum, then?

Im not sure what MSEs stance is on it, im guessing theyre not a fan of it.
My network require me to send an SCDD, Terms of business and do ID checks.

Theoretically then according to the rules im told to run my business by, im guessing yes i am.

It wouldnt be good business practice though would it.

I only do face to face meetings with clients unless theyre existing clients as my network require me to do a lot more admin and ID checks otherwise and its not worth the hassle.

Me sending some premiums to people for them to compare with their other quotes (and as i also stated they could take to a local advisor) is not conducting regulated business.

I dont come on here to get business, i come on here to learn from others (namely Dunston and a few other advisors who are on the forums). I also come on here to see what questions people have so i can look into them, that way if i come across the same situation with my clients i have the answers.

Ive been in the industry for about 5-6 years, i have only been advising for a couple of months and while im not run off my feet with clients it gives me chance to learn from real life cases.

Hopefully your happy with my explanation of myself.