New policy for mortgage assurance/life insurance.

what2do...

Morning,

I have a 15 year policy coming to an end next month which would pay a lump sum death benefit, terminal illness benefit and mortgage protection. I thinking that a decreasing term assurance would make sense for the mortgage, £56,000, 10yr 6mth to pay, but then it's the additional protection life/critical/terminal illness/income protection.
I'm 53, good health (non-smoker). I have 3 children 20, 17, 15 all still in education at moment. My income is low £12,500pa. Any friendly advice would be much appreciated.

InsideInsurance

Best advice would be to see an IFA or protection broker who can review your circumstances and advise if its best to have a Life/ CI, PHI and ASU or to skip the ASU and increase the limits on the others etc

weighty1_2

As II says, speak to an IFA or protection specialist. One of the first things I always ask my clients is whether they have a budget that they are trying to work within. Few clients want to pay for full life cover, critical illness, income protection and unemployment cover so if you have a budget and know what your main concerns are then it's normally a fairly easy process to come up with a package with at least covers your main worries/needs but still costs an affordable amount.

Personally, I nearly always recommend the combination of life insurance and long term income protection first as this provides the most comprehensive cover with critical illness next and unemployment cover last, since at the end of the day if you are unemployed you at least have the opportunity to work whereas if you are incapacitated then there's not a lot you can do other than hope you get better quickly.