Life Insurance advice

Makkusu

Hi, looking for some advice as I've no life insurance in place currently. I'm 27, engaged, mortgaged together, no children, my partner is 24. I'd be considered the "breadwinner" not sure if my partners income would cover mortgage/bills alone.

Is it sensible to ensure I've life insurance in place and if so would 10x my gross earnings be a reasonable cover? I think it works it around £16 per month just going by an online quote.

a) Are there any specific types of life insurances I can consider - I keep hearing trusts mentioned?

b) Is it worthwhile my partner getting life insurance also at a lesser amount?

c) Reading through a MSE article I was thinking of just using Cavendish to quote me one, is this acceptable over an IFA?

d) What age / how many years should I look to arrange the insurance for?

If it's of any use the cover would be around £400k perhaps, so a trust might be a good idea on consideration of IHT?

Thanks.

dunstonh

a) Are there any specific types of life insurances I can consider - I keep hearing trusts mentioned?

The UK has around 13 different types of life assurance. Although only 3 are really in the mainstream and you can find a 4th type on some comparison sites.

Placing the policy into trust can be quite important but not always needed depending on how you set it up and the purpose.

b) Is it worthwhile my partner getting life insurance also at a lesser amount?

If your partner was dead, would you be financially worse off?

c) Reading through a MSE article I was thinking of just using Cavendish to quote me one, is this acceptable over an IFA?

An IFA is an adviser. You need to pay for them. Either by fee (where the product is then on nil commission terms) or no fee but paid via commission (which is reflected in an increased monthly premium over nil commission). An IFA does all the work and advice. Cavendish is cheaper because it's a DIY option. You do all the work.

d) What age / how many years should I look to arrange the insurance for?

To meet your financial needs, whatever they are.

If it's of any use the cover would be around £400k perhaps, so a trust might be a good idea on consideration of IHT?

Possibly but you say there is a mortgage. So, there is likely to be a need for at least two lots of life assurance rather than just one. One may be in trust, but the other not.

csgohan4

Cavendish are an initiation only broker, they won't advise you, it is up to you to know what you want e.t.c


I would use adviser broker as well like Lifesearch to compare and see what you need to your circumstances and in some circumstances they maybe cheaper, but generally advised products cost a little more per month