life assurance and income protection

drmjafri

hello saving expert.

I would be grateful for some advice.

My current situation-

I own 2 properties-

a- my curent residence on which i have mortgage of 270000 pounds
(capital repayment). I have 2 single ( me and my wife) decreasing mortgage insurance + critical illness cover for 20 years each costing 44 pounds each. total= 88 pounds

b- another property which i have let out has interest only mortgage of 155000 pounds. Again, I have 2 single level term life assurance + critical illness cover (155000) each costing again approx 44 pounds. total = 88 pounds

Hence in total i am paying about 180 pounds for life and critical illness

c- I dont have any income protection.

d- I have saving of 40,000 pounds

After I read this forum, I believe i am wasting my money.

I have come to a conclusion-

1- to take joint level term assurance of 300000 pounds for 21 years. So that we are well covered in case of death ( either of us) which will cost approx 32 to 40 pounds

2- to take income protection insurance for each of us. so that we are covered if we are not able to do our job. I have got some quotes - both for level and index linked From IFA.
best for level- 72 pounds for both of us

Total approx- 120 pounds

I would be grateful for some advice

thank you

dunstonh

I would be grateful for some advice

You are only going to get that from your IFA. This board is not authorised to give financial advice and those of us here that are authorised cannot give advice on the forums due to disclosure and other regulatory issues. All you get here is opinion and discussion.

After I read this forum, I believe i am wasting my money.

No-one can say whether you are or you arent. Have a heart attack and then decide if it's a waste or not. Like any insurance, it covers a possible a event that may or may not occur. Statistically, 1 in 6 men will suffer a claimable critical illness before the age of 65. That compares to 1 in 5 for life cover. Thats not a lot of difference.

That said, the pecking for priorities is life cover, PHI then CI. Too many people leave PHI out and if its a choice of PHI or CI, then PHI should be chosen.

drmjafri

dunstonh

After I read this forum, I believe i am wasting my money.

i meant wasting money by having 4 different single policies which you would have understood from my current situation. if you read further on in my original post , you can see that i now plan to take joint policy instead with income protection insurance (PHI) to cover me when I have heart attack ( as mentioned by you).

well i am new to this forum which you can see from the number of my post. if you read my original post i have made a plan and was infact asking for opinion of other money saving expert members

any way thanks for reading my post and replying so quickly

bye

dunstonh

The reference to "not advice" was made to protect me. A number of years ago I was involved in a case where someone sent a thread to the FSA (PIA as it was a the time) complaining about advice given. The FSA threw it out as the person has copied and pasted bits of the thread in the wrong order and left things out. Plus the info was correct. However, the compliance individuals gave guidence to how industry professionals should post to protect themselves. One of those was where we were posting on a thread where someone used the "advice" word, we were to make it clear that it was not advice but discussion only.

You asked for advice. Hence that paragraph.

CI is not a waste of money for anyone that makes a claim on it. It can be a waste of money if, after 20 odd years you havent made a claim. However, you cant tell what is going to happen. Hence why it is upto you to decide. Some may think that it is worth having. Others will not. It's a chance you take.