Do you need.......

FTB_Doll

Life Insurance? Im a bit baffled by it all is it worth it? Broker has quoted us £10 per month for both of us just confused x

kingstreet

Would you want the mortgage repaid if either of you died?

How would you pay your mortgage if one of you was unable to work, due to illness or disability? What about both of you?

How would you maintain your standard of living?

What would happen if you lost your job(s)? Would you lose your home?

All questions you should be asking yourselves and how you answer them determines the level of protection you should consider.

FTB_Doll

Thank you, my OH thinks its a waste of money but its only £10 a month x

kingstreet

If it's only life cover, you see no benefit as you're dead!

The other issues, which stop you working, but mean you are still around to drain your partner's resources and see the mortgage still having to be paid.

ACG

If he or you died tomorrow how would the other cope without that income?
Would you?

The same goes for income protection - if either of you were off work for say 3, 6, 12 months and 5 years - how would you cope?

Its not the cost now, its the lack of income when you may need. If you would manage fine if you wouldnt then it needs looking into.

FTB_Doll

Well this is why we picked a low mortgage we both earn between us £47k equally split mortgage payments are £480 a month no credit cards just me with my car of £99 a month so I suppose its weighing everything up

Thanks guys x

ACG

The things to think about (your broker may have done this with you) are:
If one or both of you were to pass away,
If one or both of you were out of work,
If one or both of you were to have a critical illness (sounds harsh but its not just being out of work, they could end up being a financial burden needing care or changes to the house etc),
If one or both of you were out of work through redundancy.

Its unrealistic to say you need to cover 100% of everything as you may not have concerns about certain parts of the above list and you may not be able to afford it or you may be prepared to risk it.

Personally i would never cover for redundancy because i know that many people within my industry im confident i could get a job if needed. Life cover, if i died tomorrow i have no kids to worry about and my gf is in a decent enough job so im not really fussed about that. My biggest concern is protecting my income.

FTB_Doll

ACG wrote: »

The things to think about (your broker may have done this with you) are:
If one or both of you were to pass away,
If one or both of you were out of work,
If one or both of you were to have a critical illness (sounds harsh but its not just being out of work, they could end up being a financial burden needing care or changes to the house etc),
If one or both of you were out of work through redundancy.

Its unrealistic to say you need to cover 100% of everything as you may not have concerns about certain parts of the above list and you may not be able to afford it or you may be prepared to risk it.

Personally i would never cover for redundancy because i know that many people within my industry im confident i could get a job if needed. Life cover, if i died tomorrow i have no kids to worry about and my gf is in a decent enough job so im not really fussed about that. My biggest concern is protecting my income.

Thanks ACG thats very helpful If my OH was to pass away I get 2 years of his salary as part of his pension plan which covers half of our mortgage

Its all so confusing x

ACG

I would be watching my back every time you picked up a knife if i was him :-P

FTB_Doll

ACG wrote: »

I would be watching my back every time you picked up a knife if i was him :-P

Ha ha ha wondered why he had that look!