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Tidying up policies

genieuk
Posts: 341 Forumite



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
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
Mortgage
June 2011 £145,943.13
Dec 16 £74,537; Feb
Aug 17 £59,399.96
Nov 19 £0.00
June 2011 £145,943.13
Dec 16 £74,537; Feb
Aug 17 £59,399.96
Nov 19 £0.00
0
Comments
-
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?0
-
Any children?
If so, ages/dates of birth?
Do you both work/have an income?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Yes 4 children 22, 19, 16, 14
Both working aiming to be mortagage free Aug 2019Mortgage
June 2011 £145,943.13
Dec 16 £74,537; Feb
Aug 17 £59,399.96
Nov 19 £0.000 -
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?I am just thinking out loud - nothing I say should be relied upon!
I do however reserve the right to be correct by accident.0 -
Not maxing out pensions yet
Yes to death in service.Mortgage
June 2011 £145,943.13
Dec 16 £74,537; Feb
Aug 17 £59,399.96
Nov 19 £0.000 -
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.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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