what insurance should we have

kittb

DH is in the process from changing jobs from one where we have family private health insurance, death in service, life assurance. 12% pension contribution etc to one which offers just 1% pension and nothing else.

We're married, 2 primary age children, mortgage but no other debts and no real savings. What sort of policies should be look to get. We won't be getting private health cover .. but need to check we have appropriate life insurance, accident and sickness insurance?

Thank you

lisyloo

I would look at life insurance, permanent health (not critical illness) and pension.

Life insurance should cover loss of income due to child care (or child minder costs) bearing in mind there is just going to be one of you.

Permanent health pays an income until retirement. Critical illness pays a lump sum. I'd personally rather have the former. If you are told to get the later then ask what happens if/when the lump sum runs out.

Obviously a pension is required unless you want to retire at 68+ on a pittance.

Unemployment cover would be nice, but the bill starts getting big.

InsideInsurance

Add to the above you may want to consider things like Private Medical Insurance, Unemployment (can be added to PHI with some providers) and Critical Illness.

Personally not a fan of any of those I mention other than PMI and PMI is very expensive when you arent getting it via a work scheme

Speak to a Protection specialist IFA or Advisory Broker to run through your options, prices etc.

lisyloo

Just an anecdote but most of my middle-earning colleagues feel it's not fair to have PMI unless they can afford it for the whole family - which most can't.

InsideInsurance

Corporate rates tend to be lower and even as a higher rate tax payer you only pay 40% of it as BIK

My old company policy was about £900 per year and so I paid 40% of that to cover the family. On our private policy now I am not an employee £360 is only a little over 2 months premium so the cost is almost 6 times what it was as a staff perk.

As I get no sick pay its worth having it for me and I am in the situation that it makes sense to still have it and also dont feel its fair to only have it for me so just have to suck up the high premiums - to date only the Mrs has needed to claim so arguably beneficial.

lisyloo

My company only pays for employees not family, although they do benefit from the company rate.

kittb

thats really helpful thank you for your replies.

Rykszek

Interesting topic, thanks for the advice.