Buying Life Insurance + Critical Illness cover. How the Trust works?

awara

Hello

I am 36 never smoked and have family to look after.
I am thinking about £300,000 policy with critical illnes for 20 years.
The aim is that I get the money if critical ill or if died, my wife get the money to pay off about £80,000 mortgage keep the rest etc...

I have checked out the Covendish and money world and both are giving me the same amount of £75 pm with L&G and £73 with BrighGrey. and about £16pm only life cover. OR £23pm for £500,000 only life,

My questions are

1. Is it worth having Critical illness cover with life policies?
2. Wouldn't it be sensible to have medical insurance instead of Critical Illness cover and have life insurance on it own?
3. How the trust works? Do I need trust? Do L&G do it for you or have to go to some FA or solicitor for it?
4. Also it there a limit on having more than one life insurance? i.e. have one with Aviva and other with L&G and so on?
5. Is there any limit on the amount to insure based on annual income?

Regards

ACG

1) you can do a combined life and critical illness policy - nobody will tell you if its worth doing as thats classed as advice and you can only do that by seeing an advisor (thats the downside of buying online). It is usually cheaper to do that though as there will only be 1 payout maximum where as seperate policies could pay out twice.
2)Again, thats advice and without doing a factfind its difficult to say. My preference for myself was Income Protection (long term) and life cover when i have a kid. But that might not be best for everyone.
3) The company you take the policy out with should offer free trust documents, if you struggle to complete it then you might need to call L&G or pay for advice. You can have a "split trust" this pays the life cover to the trustees but the CI benefit to you.
4)You can have as many as you like "within reason", ie if you have a £200k mortgage you probably have no need for £2million worth of life cover. So its just within reason really, but there is no set figures.
5) no. Its based on your needs not your income - your needs could be mortgage, cost of kids being brought up going to uni, debts, IHT anything that will need paying where there will be difficulty in the event of your death.