Life Assurance - 2 single or 1 joint policy???

bonvonnie

which is better?

Me (28) and OH (30) need to sort out our life assurance, as the one I purchased over 6 years ago, is only for 90K which will not cover the house or anything. we now have 2 kids aged 4 and 2, a big mortgage, and a few busineses.
We have had a quick look around, and will get a level term, with terminal illness. we have been told that the critical insurance isnt worth the extra, as it has alot of clauses.

I read on the MSE info pages thats its best to be coverd until kids are out of full-time education. so do you think a 16yr policy will do, maybe i should opt for 20years just incase.

but my main question, is whether its better to buy 2 individual policys for £500K each, or a joint £1m policy? i think the joint policy we saved around £10 per month, but I want to know which option would be more beneficial

Any advice would be great, as we want to sort something out this week, next on list, sorting a will

dunstonh

We have had a quick look around, and will get a level term,

Why level term?

we have been told that the critical insurance isnt worth the extra, as it has alot of clauses.

Any insurance has clauses but most policies pay out over 90% of claims. From a professional point of view, I seem to deal more in CI claims than life cover. Other advisers have on the board have said the same when this has come up before.

but my main question, is whether its better to buy 2 individual policys for £500K each, or a joint £1m policy? i think the joint policy we saved around £10 per month, but I want to know which option would be more beneficial

You would need 2 policies, possibly 3. One for the mortgage, one (or two) for the family protection depending on how your circumstances compare with yourself and OH.

With the sum assureds you are looking at you should be looking to place the cover into trust. Otherwise you are just helping the Govt to 40% of the proceeds if you arent careful.

bonvonnie

isnt level term, where the payment per month stays the same for the duration of the policy?

I'm getting confused, as I've look at so many things the last few weeks, trying to get all paperworks, policys in order.

ok, even if we do buy 2-3 policys is it better to have them in joint names or individual.

Isnt the Critical Illness one, where they only pay out if you been diagnosed with less that 12months to live.

think i need to go and do more research into the wordings, getting

dunstonh

isnt level term, where the payment per month stays the same for the duration of the policy?

No. Thats called guaranteed. The other two main types are reviewable and yearly renewable (called currentcosted on some sites).

ok, even if we do buy 2-3 policys is it better to have them in joint names or individual.

Depends. The policy protecting the mortgage should be joint but the policy covering family protection could be joint if your financial need is similar but if it isnt (say you need £150k but OH needs £300k) then you get one each.

Isnt the Critical Illness one, where they only pay out if you been diagnosed with less that 12months to live.

No, thats terminal illness.

think i need to go and do more research into the wordings, getting

I think that is a good idea. I notice you didnt mention trusts either.