Is my cover enough?

moggaletti

Hello,

I’d like some advice on life assurance please.

I’m 40. I earn about £40k and my wife earns about £25k.

I have in service cover of £120k, joint decreasing mortgage cover of around £400k (whoever does dies first for life of mortgage) and we both have joint cover of another £400k (whoever dies first).

We have 2 children.

I have a good pension of 2/3rds of my salary. And if I die, my wife will get half of it, plus extra for my children (I can’t remember how much extra exactly).

My financial aims are for me and wife to have financial security in the future (ie my pension + state pension), mortgage paid off (decreasing assurance) and also to give my wife and my children security if I die (mortgage paid off and the extra £400k policy).

I’m not sure I have enough cover in the following scenarios:

A. That I die and my wife and children are left.

B. Both parents die and my children are left by themselves.

Should I have a, say a £500k policy per child?

Should I have more for my wife?

All of these policies take me to the end of mortgage and end of work. After that we have nothing but pension. Should we have longer policies? Almost like saving policies so that if I /we die after pension age our children / my wife will still have something?

Advice please?

Thanks.

huckster

Have you thought about, if either or both of you became disabled and could no longer work ?

Your current cover is mostly about about death and paying off existing credit liability ?

Have you spoken to an independent financial advisor ? If not, then it might be worth seeking a review.

csgohan4

as above

I would certainly think about income protection sooner rather than later. It becomes more expensive the older you get.