Life insurance thoughts and advice!

renfirsttimebuy

Hey all, so as part of my mortage I have selected life insurance 

1. If one of us dies our mortage is paid off
2. Critical illness cover 
3. If one of us dies then a family income over of 500 per month 

What are your thoughts? Should I get rid of one? Am i been caught in a sales? Or made the right choices? I'm not sure. 

Thank you 
Thoughts needed 

Windofchange

It's going to be a very different answer for everyone. What level of risk are you happy with? What (if any) private pensions and savings do you have? If one of you went would you be able to cover the others mortgage repayments, or immediately be in trouble? Do you need both 1 and 3? If the mortgage was paid off, would the surviving partner be able to cope? Do you have any dependents? If there are small children that probably puts more of an importance on life cover than if it is just yourself and a partner. You probably need to elaborate far more on your situation before anyone can comment, and even then, it will be down to your individual appetite for risk.

Mickygg

It really is a personal choice. One of those things you hope never have to enforce but may need to.
its got to be down to you. If you have ploughed all money into house it’s probably a good idea. I personally don’t go for these insurances but that’s my personal choice. Me or my partner wouldn’t be screwed if one of the things happened you mention. I also have some cover through work.

You would need to get comfortable paying the premium each month as it’s pretty hefty, but it would be bearing in mind what it covers. 

zagubov

Check your pension, as it may provide some life insurance cover (the Teacher's one does for a start and I've heard that other ones also do that).

Thrugelmir

What risks do you need to cover against? Is full cover neccessary. 

dimbo61

As others have already said it depends on your circumstances.
If your the only one earning an income and your partner is a stay at home mum with the 6 children under 10 you might want all the cover possible.
Check what level of cover your employer offers.
As a minimum I would have joint level term life assurance to cover the mortgage 

[Deleted User]

What are you doing if you are off work for a long time and it's not covered as a critical illness?

The average income protection claim is just over 5 years.   What do your finances look like if you couldn't work for 1 year? , 2 years? Etc etc
And then how likely is that to happen?  
And most importantly, is it a risk you want to insure against. 

It's difficult to imagine unless you've been there or someone close to you has.  A friend of mine had a bit of bad luck in business and personal life and just had a complete breakdown.  Didn't even speak a word for over 2 months and didn't leave the house for nearly 6.  I couldn't imagine that happening to anyone before I saw it.   Took him over a year to feel able to work again on a par time basis

You've got to imagine yourself in the situations you hope to never be in and see how well you would cope financially.

It's ultimately a personal decision, I have insurance because I don't want my kids to stop all their clubs and activities. Other people have cover to make sure they don't have to use their savings. 

Why have you chosen what you have got?   If you can answer that and you are happy with the answer then sounds like you've made a good choice. 

fullofcold

1. If one of us dies our mortage is paid off
Assuming joint mortgage it makes sense.
2. Critical illness cover 
Depends whether you want a lump sum if you are diagnosed critically ill or whether you want a monthly benefit if you are off long term sick
3. If one of us dies then a family income over of 500 per month 
Depends on your family finances, and reliance on each others income

--------------------------------------------------

Basically no one can advise you unless they have done a full fact find, and taken into consideration your thoughts and feelings as to how you could financially survive if either of you were long term ill or died during the time you are repaying your mortgage/have dependent children.

fullofcold

As an aside.  I am married - no children at home but my husband and I pay child support for 4 children.  We earn approximately the same and with the mortgage repaid would have a shortfall of about £500 per month (mainly child support needing covering until 18).
We have

1. Life cover to repay the mortgage in full
2. Family Income Benefit of £500 per month until youngest is 18
3. Income protection for my husband until retirement
4. Critical illness for my husband

I already have IPB, CIC and separate life through work.
Everyone's circumstances, and thoughts and feeling on the subject are different