health v life insurance

skattykatty

Me and husband entering 40s and don't have any form of life/health insurance. Both low waged at the moment with no children. If you had to take out one form of insurance would it be health or life? Why?

(Also, just had cursory look at BUPA and I don't get what I'd be paying for, there is a massive list of what they won't pay out for!)

dunstonh

when you say health insurance do you mean permanent health insurance (PHI) which is the best form of income protection or do you mean private medical insurance (PMI) which is for going private on medical treatment?

The pecking order, assuming you have financial needs, is life assurance, then income protection and critical illness cover, then mortgage protection, then retirement planning, then things like medical insurance.

There is no cast in stone priority list and some may vary importance but consider it a rough guide.

skattykatty

Thanks for clear, comprehensive thoughts.

ACG

I have a slightly different train of thought, personally i think Income Protection (PHI), life insurance, critical illness...

Im presuming your reliant on both peoples incomes...if thats the case then i would be looking at what PHI and Life insurance i could get for whatever budget you have as i imagine you would be in just as big a mess whether 1 of you were to die or be unable to work - so they probably have an equal or near equal priority.

PMI (which is what i would call health insurance) i think is way down the list.

But these are my opinions and not recommendations.

skattykatty

Thanks for taking the time to share your opinion. From what I understand, PMI does seem to be way down the list of priorities.

thegirlintheattic

Do you have a mortage?

I'd get the life assurance first and then PHI. Health insurance (PMI) is a unnecessary luxury, especially on a low wage.

skattykatty

no mortgage. we rent.