Life Insurance Advice

exe76

Hi,

We move into our new house on Friday and are setting up our life insurance. We really would appreciate some advice on values to cover us for as we literally have no idea!

M is 42 and earns £30,000.00 pa
F is 36 and earns £37,500.00pa
Both debt free (no CC) with combined savings of £30,000 in the bank following purchase

House purchase value is £280,000 with a mortgage of £248,000 paid over 30 years

Would really appreciate some comments on the level of life/critical illness cover recommended.

Both healthy with no health issues

With thanks

csgohan4

I got life assurance for as long as anyone could offer me and covers the cost of my house plus a little bit more. Some people just cover the period of their mortgage only.


I did it this way, in case I kicked the bucket before the cover ends, 89, I would have something to leave for my family.


Ideally if you can afford it, add in critical illness and income protection too.

Kynthia

It's personal for each person or household. I didn't bother until we had children as before then we were both working we didn't feel we were that financially dependant on each other. We also had pensions and death in service cover at work that would have been sufficient.

So for life assurance think about how much the surviving partner will need should the other pass away, at what point will you no longer require cover (often people end cover at retirement age as theirs no longer much of an income to replace and the mortgage will have been paid off), look into any other cover you already have (work or their pension scheme perhaps), and then get quotes fir what you need. This will need reassessing if your circumstances change (bigger morggage, change employer/earnings/have children/etc.

Will CI meet your needs if you get seriously ill or would permanent health insurance be better? CI is expensive so consider what amount you'd need versus the cost.

csgohan4

the longer you leave the more expensive it becomes, i.e the older you get