Life insurance - what amount should I cover?

5 Posts

Hello everyone,
We’ve only just bought a house together with my partner and looking for a life insurance or mortgage protection insurance covering both of us in case of our death. We’re interested in decreasing term life insurance. Should we cover the amount we borrowed or the amount we owe to the bank at present? Is it better to apply for life insurance separately or do you think a joint application works better financially?
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If you have only just bought it, does it make a lot of difference?
At the end of the day, it is to clear the debt. So, go by that figure.
You only need to clear the mortgage once if one of you dies. Not twice. So, joint life is suitable.
That's what I thought. I know some people around me, who bought life insurances covering the amount they borrowed, but not what they actually owe. It seems ridiculous.
Thanks for your reply.
Lewis Carroll