Are we over insured?

jinky67

Just looking for some advice from those more knowledgable than us;
Myself and OH currently have endowment that obviously covers mortgage...
joint critical illness insurance-covers same amount as endowment....
and term insurance for each of us covering £135000

My question is were we done by financial advisor looking for commission?
Do we really need all this or are there better options?


Thanks all opinions welcome

dunstonh

£135k is actually very little by todays standards.

If you work on the 5% income rule, then £135k only provides £6750 income a year. If the main earner is on £25k a year say, then losing that and only getting £6750 is going to cause financial hardship potentially.

Nowadays, its normal for term assurance for family protection to be closer to £200-500k.

jinky67

not sure I explained myself properly...
What I meant was....do we really need all these types of insurance?
Endowment also covers for critical illness so do we need separate C.I?
Hope this is clearer

dunstonh

What I meant was....do we really need all these types of insurance?

No-one here knows your circumstances.

Endowment also covers for critical illness so do we need separate C.I?

You will if you have a critical illness. Although a permanent health insurance policy ought to be prioritised before CI.