Life Insurance Query - Any Advice Please

sazandy25

Hi, we are after some advice on Life insurance etc.

Me, aged 31 & my wife 33 currently have a decreasing life insurance policy to cover our mortgage, which has 17 years left on it. We currently pay £29.12 for the JOINT policy.
We currently have no children, but hope to in the near future.:D

I have heard that a decreasing policy is kind of uselees and a level term policy would be a much better option, eg. it paying out up until either of us were 70 years old, instead of when the mortgage is finished.

I know we would be paying for longer, but is it better.

Also having seperate policys instead of a joint one, as, if one of us dies the joint policy will pay out, leaving the living remaining person having to find a policy (which would be more expensive, as they would be older).

Any advice on what we should do gratfully received

dunstonh

I have heard that a decreasing policy is kind of uselees

Where from? Because it certainly isnt.

a level term policy would be a much better option, eg. it paying out up until either of us were 70 years old, instead of when the mortgage is finished.

And costing your far more money in the process and appearing to cover a unrelated need.

Also having seperate policys instead of a joint one, as, if one of us dies the joint policy will pay out, leaving the living remaining person having to find a policy (which would be more expensive, as they would be older).

It is usually not cost effective where there is a joint need that only needs one payout to have two policies. The difference may not be double the cost but there will be a difference. So, why pay more than you need to?

You almost certainly have different individual needs for income replacement and lost pension entitlement which could easily see individual plans or segments used there though.