life insurance do i cancel?

nicky123_2

Hello, has anyone got any advice for me. im trying to cut back on my monthly outgoings to get rid of my debts and have discovered that i have a life insurance for my husband and also one in joint names. they are two different companies offering the same payouts and im thinking of cancelling the one for my husband and keeping the joint policy(he knows about this!). that would save me £30 a month. We also have life insurance to do with our endowment policy which i know only covers me for the ammount of the morgage but if i cancel the seperate joint policy too this would save me another £35 per month.Any advice????

jasonking

I assume you bought the cover originally for good reason...if you cancel any of the insurances now you will simply be less well protected should the unthinkable happen. You could try shopping around to see if you could replace the cover with a cheaper company (depending on what type of policy it is, when you took it out and who with).

If you cancel it and then in 6 months finances have improved so you want to replace the cover you could find that it is much more expensive as well.

nicky123_2

Thankyou for your reply Jasonking i did think that i may replace it in the future with a cheaper policy, what is your opinion on critical illness cover as an extra top up on a policy?

jasonking

CI is certainly worth considering as an option, this will cost more though. You should also consider Incoem Protection (PHI) to replace your income if you are unable to work due to sickness/accident.

Its best to sit down witha piece of paper and work out how the household budget will be affected if either of you were to die/suffer an illness and be unable to work. You can then see where the gaps are and work out some priorities. Its not easy but a decent adviser should be able to help as some stage as well