What insurance do I need? Mortgage Life Income protection. What are the options

homewishes

Married.
Early 30's 
First baby due in June. 

What insurance should I be taking to protect the financial future of my family? What I am after...
Pay of the remaining balance of my mortgage if myself or my wife die's. 
I guess as well as a lump sum a monthly payout to the remaining spouse for a period of time. Or overkill ?
My companies sick policy is only statutory, this would not go far in covering mortgage and household bills. So something that pays out a fixed amount each month if I was to go on long term sick. 

Weighty1

the monthly payout is not overkill and is something readily available on the market in the form of Family Income Benefit.
Sounds to me like you've made a pretty good assessment of what you need.

csgohan4

Income protection, life insurance and if you can afford it critical illness if needed

dunstonh

The way you need to look at it is picture the scenario if you are:

a) dead

b) long term ill

And what impact that would have.

e.g. you have died and no income is coming in.   what whould happen next.    Follow the stages through. The amounts you need on life assurance, permanent health insurance (income protection) and crtical illness cover will be dictated by your financial needs.  (don't forget to include pension in the scenario as that will have death benefits and statistically, you are more likely to hit retirement than not).