life insurance with critical illness

shiningfaery

Hi I am looking for some guidance on how I should calculate the level of cover needed for myself.


I am single, 2 kids (still very young), renter although would like to buy in future.


I have done quotes for £100K life and £50 CI but was just playing about with the slider on website to be honest so what sort of levels should I be seriously looking at? How do you out a value on this type of insurance? how long should I be considering the plan for is 25 years standard or would it be better to consider something longer? (I am soon to be 35).

dunstonh

How much you need depends on your circumstances. Same with the term. Typically, if you are looking for family protection then you tend to go until the youngest child is around 25-30 years (children tend to live at home longer nowadays. Who knows in the future).

Your need will depend on how much pension you have, death in service and savings vs how much you think it will cost for your children to be looked after full time if you were not around.

£100k is not going to last long. For example, it it costs £15k a year for grandparents to support children then you will run out of money before they are no longer dependent.

shiningfaery

That makes sense thanks dunstonh

I remember a bank financial advisor (don't know if fully qualified) saying to me that 150k cover was too much cover for me and tried to sell me critical illness on its own.

da_rule

You mention that you want to own a property in the future, so you need to consider whether you can increase the cover amount to cover the mortgage (if you need one), as well as leaving enough money to cover care costs for children etc.

dunstonh

I remember a bank financial advisor (don't know if fully qualified) saying to me that 150k cover was too much cover for me and tried to sell me critical illness on its own.

Most banks pulled out of financial advice. Partly due to their high rate of failure and the increasing costs of putting it right. Banks are the worst place to buy financial products.