New to life insurance

Fireflyaway

I'm starting to think my husband and I should really get some life insurance but I have no idea how much.
Our incomes are very different, we don't own a home, we are renting and we have one child.
My main priorities if the worst happened would be too keep a roof over the heads of the survivors and continue paying school fees. I've tried various calculators and they all recommend different amounts.
I don't want to have another huge monthly bill. Any ideas on amounts of cover and for what period of time or finding good providers?

Juxtapose

Life insurance is hard to advise on especially with limited information so I would strongly suggest getting an adviser to look at it for you, not all charge for the advice.

Facts like how old you both are, how old your children are, your outgoings, debts/savings all have an impact.

A whole of life policy would provide the longest cover without having to take a new policy out at older age.


However if budget is your main driver perhaps try selecting an amount to insure based on the premium you want to pay rather than the amount insured. More cover is better but it's got to be affordable

Juxtapose

Sorry to clarify, though whole of life insurance provides the longest cover term you will however get less of a return than term insurance

dunstonh

A whole of life policy would provide the longest cover without having to take a new policy out at older age.

A whole of life assurance plan would likely be a missale for most people.

Sorry to clarify, though whole of life insurance provides the longest cover term you will however get less of a return than term insurance

Investment-linked plans started to go out of fashion in the mid 90s. And for very good reason. Most plans today are not investment backed and do not get returns.

Juxtapose

whole of life assurance plan would likely be a missale for most people.

Agreed that the pay out is much lower however it serves a different purpose

Investment-linked plans started to go out of fashion in the mid 90s. And for very good reason. Most plans today are not investment backed and do not get returns.

Again agreed but a WOL does not need to be investment linked to be useful. I should suspect that term assurance would be far more beneficial for them however it's important to weigh up all options

ACG

If you do not need a lump sum payout, you could do something like Family Income Benefit (FIB).

With FIB you can have it pay you a monthly "income" for an amount you would need until the kids turn 18/21 or whatever you choose or until the other persons retirement age. FIB can be cheaper than Term assurance that pays out a lump sum. But as suggested, speak to a broker, there are so many options and add ons that you may be interested in.