Life insurance question

jfpeeps

Hi

So I have two flats, one I own with my wife and one I own with someone else (she still gets my half if I peg it). Both flats are in positive equity (and earn a profit). When I bought each of these I was told as a condition of getting the mortgage that I had to have life insurance.

Now with these and my employer I now have three life insurance schemes. This seems way more than I need. Can I just cancel one one of the flat ones?

stephenni1971

Well your employer scheme is likely a death in service benefit and as such you wont be paying a separate premium for that. Bear in mind if you change jobs you may lose it so I personally wouldnt factor that in to covering a long term need.

The flat you own with someone else - they may well get your half if you die but they will also be left with all the mortgage - could they cope?

When you say they earn a profit are both of them rented???

dunstonh

Death in service is largely there to help reduce the loss of pension and some short term future income.

If they are just in equity, do you intend to leave your wife with very little?

jfpeeps

One rents at a modest profit, the other we live in but is almost paid off. If I died it would be rented at a 1k a month profit.

jfpeeps

Not at all, I think I need to review all this with the providers, I was assuming two life insurance plans, plus 1.5 flats and whatever else we have by the time I die would be reasonable.