Life Insurance policy ending what next

gwynfryn

Hi,

My wife and I have separate life insurance policies, both were taken out for 18 years with £200K each cover.

They are ending in the next few weeks. So what next?

Our circumstances have now changed, children left home - married, mortgage will be paid off in 4 years (circa 50K left to be paid).

So how much life insurance do mid 50s people now need?

I was think of £50K each for 20 years? But it is a minefield of options.

So the money would provide for funeral expenses and a pot for the person left to have as a buffer in old age. Assuming neither of us die within the next 4 years until the mortgage is paid off.

Any suggestions/what have others done?

SonOf

So how much life insurance do mid 50s people now need?

Everyone is different. So, no way to answer that.

You need to work out how much each other will be worse off in the event of death.

Clearing the mortgage is one thing. However, what about lost income and reduced pension entitlement?

Weighty1

gwynfryn wrote: »

So the money would provide for funeral expenses and a pot for the person left to have as a buffer in old age. Assuming neither of us die within the next 4 years until the mortgage is paid off.

Any suggestions/what have others done?

So what if you one of you DID die in the next 4-years or even the next year and the majority of the money has to cover the mortgage?

What if you outlive the 20-year term and therefore there is no cover to pay for funeral expenses?

You need to consider what "risks" you wish to protect and then the cover should be arranged to reflect those risks. Trying to have 1 single plan which covers a multitude of needs is almost never going to result in the best arrangement.

Many companies will allow you to have a mixture of cover all within 1 plan so that it is tailored to your needs, however, you'd generally need to speak to an adviser to access arrangements like that.