Mortgage with no insurance please advise

lknights1987

I currently have a mortgage for £125k but have no critical / life insurance if anything happens to me. I have a partner and a 4-year-old son

The company that I work for has vitality health insurance which I signed up for 5 years ago when I joined the company. They also pay for death in service £150k and pay 15 weeks full sick pay so my question is do I need life insurance?

If yes what life insurance company is best to go with right now and also what critical illness insurance is best to go with? 

Ideally, I'd like one that offers benefits like discounted gym memberships, fitness watches, etc.

RobM99

They pay death in service - suppose you get made redundant tomorrow? (Hope you don't, obviously!).

lknights1987

RobM99 said:

They pay death in service - suppose you get made redundant tomorrow? (Hope you don't, obviously!).

That's a good point! What insurance do you recommend?

dunstonh

so my question is do I need life insurance?

Almost certainly yes.   

The death in service is designed to make up for immediate lost income and reduced pension entitlement.    If it gets used for debt repayment, then what is your partner & child going to have to live on?

If yes what life insurance company is best to go with right now and also what critical illness insurance is best to go with? 

Those of us that can answer that question won't as it would be a breach of regulations.  And the board doesn't allow it.   Plus, which is best would depend on a range of circumstances about you that we do not know.  There is no one best option that fits everyone.

We can talk generically here though.  Just not recommend providers.

Ideally, I'd like one that offers benefits like discounted gym memberships, fitness watches, etc.

Gimmicks won't be important if you or your partner has to make a claim on the policy.   And those policies that offer that type of thing are not the best in the market.   So, are you willing to compromise what you need to get a gym membership?

Weighty1

lknights1987 said:

I currently have a mortgage for £125k but have no critical / life insurance if anything happens to me. I have a partner and a 4-year-old son

The company that I work for has vitality health insurance which I signed up for 5 years ago when I joined the company. They also pay for death in service £150k and pay 15 weeks full sick pay so my question is do I need life insurance?

If yes what life insurance company is best to go with right now and also what critical illness insurance is best to go with? 

Ideally, I'd like one that offers benefits like discounted gym memberships, fitness watches, etc.

There is only Vitality that offer these sorts of discounts and they do have an excellent policy, however, many of their policies are "optimised" meaning if you don't partake in their Vitality scheme and accrue enough points the premiums can increase annually.  This can cause them to become extremely expensive when compared to a plan which offers a guaranteed premium.

user1977

RobM99 said:

They pay death in service - suppose you get made redundant tomorrow?

Or if your illness starts while you're in service, but is prolonged and you're no longer employed (because you've been away for months and there's no prospect of you returning to work) by the time you die?