Life Insurance - Where to start

theguvnor

Hi,

I'm looking at getting life insurance. A joint policy for me and my wife. Never really thought about it before but we now have a 6 month old.

I'm 35 and my wife is 36.

Not a clue where to start or what we would want. We have a mortgage which has 154k remaining and we also have some debt so I guess something that would pay all of that off

Thanks in advance

Chris_Pollard

Hi, best advice is seek advice from a professional financial adviser - the website unbiased.co.uk will give you a choice. If you really want to go alone, then no problem, but maybe think more widely than just life assurance. Life assurance is often the first thought, and no bad thing to consider, but it's the least likely to happen, so maybe first check how your incomes (you and you wife) might be affected by illness should you be unable to work. If there's no safety net then I'd recommend you research a sickness policy (called Income Protection - IP - and not to be confused with PPI). These products will provide a level of income should you become incapable for work - the level of benefit and when they are payable (for example your employer might pay you for six months) is configurable. Assuming you've ticked that box and are protected then you might want to consider critical illness insurance - this pays a lump sum on the diagnosis of certain illnesses, such as cancer, heart attacks and strokes. Almost all the policies will also protect your children (current and future) should they fall seriously ill. I know you won't want to give that a thought, but the facts show that thousands of children's claims occur and the partial payment can often fund specialist treatment, or allow a parent, or both, to take time away from work. How much cover you select will depend on your budget - many purchase a Critical Illness policy (that will also pay on death) to match their mortgage, and perhaps top up with a bit of further life cover.

I hope this helps. If the options appear overwhelming and you don't want to spend the time trying to go alone - visit unbiased and whomever you select will take a holistic view of your insurance, protection, needs.

hope this helps.