Tidying up policies

genieuk

Thanks in advance for your advice.

OH and I both have two life insurance policies each they include critical illness,terminal illness cover. The amounts are as follows.

Myself
£250k at £22.20 per month end date 12/33
£75k at £14.25 per month end date 08/19

Hubby
£200k at £20.58 per month end date 09/33
£48k at £11.57 per month end date 06/26

We have an outstanding mortgage of £70k.

I was wandering whether to cancel the smaller two policies we are both mid 40's.

Thanks

Weighty1

It's all dependent on whether you need the cover? If your hubby died how would that affect you financially and vice versa if you died?

kingstreet

Any children?

If so, ages/dates of birth?

Do you both work/have an income?

genieuk

Yes 4 children 22, 19, 16, 14
Both working aiming to be mortagage free Aug 2019

ThinkingOutLoud_2

As above - the question is what you and your younger children would need if either one or both of you departed unexpectedly. What level of income would be lost / needed and for how many years?

I am sensing if you can pay off 70k of mortgage in 2.5 years that you have a fair level of income. Are you maxing out your pension contributions too?

And do you have any death in service benefit at work?

genieuk

Not maxing out pensions yet
Yes to death in service.

kingstreet

Looking purely at the cover, you need to keep your mortgage cover until it's repaid, you need family protection cover until youngest child is 21/25 based on the loss of income from death of either of you, inc DIS.

I'd hold a review with an IFA/protection specialist to see if you can focus more closely on needs and free-up resources for other things, such as mortgage overpayments.