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Life Insurance for a beginner?

Me and OH have decided that with the arrival of LO it would be a clever idea to get some sort of life insurance just in case the worst was to happen. We've looked online at the comparism sites, but I'll be honest and say I don't really get it. Lol.

Ideally we're after something we can pay into and if one of us was to die then the other will receive a pay out (nothing huge, we have no property so about £25k would be enough to help the other out) and if both of us were to die then the payout would go to LO's guardian to bring him up.

I don't really get how it works? On policies that say 25 years what happens after 25 years? Do we get the payout or does it dissapear?

Does anyone have any tips for the best kind of policy for us?

Comments

  • ACG
    ACG Posts: 24,912 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    To be honest, for £100k of cover your talking about £20-30 a month. £25k would probably end up below the minimum premium.

    Life insurance is pretty cheap.

    If your after advice on the best policy you need to go and see a mortgage or financial advisor, they will do a factfind and make a recommendation - they can look at life insurance, income protection and critical illness cover.

    It wont cost anything in the sense that they will receive commission from the provider, so it wont cost you anything upfront.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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