Life insurance

BohemianRhapsody

Hi. In the process of purchasing a new house and getting a new 25 year term mortgage. Family of 4 with 2 young kids. In our early/mid 40s. We are considering getting a single Decreasing life policy and individual IP policies. The other option is the Level term policy with individual IP which is more expensive. Our work insurances, both life and sick pay, are not great. We are trying to cover a reasonable level within our budget. Any thoughts on which would be preferable?

Thanks!

lisyloo

What’s IP?
Does on of you stay home to provide child care? That person will require income for a number of years in addition to mortgage paying off.

Have you considered you pensions as part of the available money on death?
Do they provide lump sums or a pension for dependents?
You’d need to take into account the size obviously.

BohemianRhapsody

Thanks. IP = Income Protection. Both working f/t. Minimal pensions at the moment but started paying more recently.

Any view on Decreasing vs Level term policy? And is it better to take 2 single or 1 joint?

SonOf

In reality, you are likely to need a level term assurance or two and a joint decreasing term assurance. Not one or the other.

BohemianRhapsody

Thanks but would you mind elaborating?

jonesMUFCforever

BohemianRhapsody wrote: »

Thanks but would you mind elaborating?

Should one of you die (especially if kids are young) then the decreasing term should cover your mortgage so you have a place to live and the level term will give the survivor a lump sum to live on (or towards), that is what I think Sonof was thinking.

csgohan4

I would encourage to engage a broker to find products which are suited for you. MSE do a good article on life assurance and the same brokers also do IP as well. Used them myself and found them quite useful.


If cost is not an issue, having life insurance, IP, CIC in that order would be ideal, I only have the first 2




As with anything, You can't get good quality cover and cheap at the same time, you need to compromise if you want to reduce your premiums

SonOf

You take multiple plans or segments out to cover your multiple needs. Not try and shoehorn one plan to cover the lot