Life Assurance Term?

Mr_Reeman

Hello, my gf and I recently bought a house together. We would like to get life assurance but curious as to what length of term we should go for. Our mortgage of £165950 is for 25 years, but that seems a long time to commit an assurance policy to when our circumstances could change, children, new jobs, paying off the mortgage early, marriage, divorce etc..

Would 5 years be a more suitable time frame and then to reassess our siuation then and buy another policy or is it common practice that people amend their policies as circumstances change?

Is it common that you can cancel a policy at any time, (without getting anything back of course), and then take out another policy?

Sorry for all the questions, thanks!

ACG

Your best doing it for the longer term.

What happens if you were to have a stroke in 3 years time. You have a policy for 2 years before you have to replace it. It would end up being a lot more expensive after the stroke.

You can always cancel the policy down the line if you choose to.

Mr_Reeman

Hmm.. good point. Thanks.

dunstonh

but that seems a long time to commit an assurance policy to when our circumstances could change, children, new jobs, paying off the mortgage early, marriage, divorce etc..

25 years is your requirement. If it changes then you change the policy. Ideally, get one that has guaranteed insurability on it just in case health goes bad later.

You will rarely need less life assurance until you get to retirement. So, when children come, you take out another policy covering that need.