Death in Service and Life Insurance

BrianW2022

I have considered critical illness and income protection as well. Adds up to a tidy sum which we we cant aford right now but should be able to in 6 months or so. I think one of us falling long term ill is defintely more of a concern.

Appreciate all the insights, really opened my eyes to what we might need.

Emmia

p00hsticks said:

Emmia said:

We've got life insurance, to ensure that the survivor doesn't need to worry about paying the mortgage, if the worst should happen.

In reality, the 'worst' may not necessarily be the death of one partner, especially if there is a death in service payout, but rather one falling ill enough to be unable to work (and then possibly the other having to reduce hours or also give up work themselves in order to care for them).

The OP should also be considering income protection and/or critical illness cover in the mix. 

To be clear we have critical illness cover too. It's costing us the best part of £200 a month.

jackieblack

BrianW2022 said:

My partner wants to wait for a year possibly two to sort this out as we do have reasonably high outgoings at the moment with the renovations and as you said it is an extra expense. 

Waiting carries its own risks…

3 years ago (aged 52) I was researching life insurance as the policy I took out in my 20s was  due to end. Before I had gotten around to finalising a new policy I was, completely out of the blue, diagnosed with a medical condition that significantly increased premiums. Since then, I have been diagnosed with additional lifelong conditions that now make premiums completely unaffordable for me. I should have ‘bitten the bullet’ and been more decisive 3 years ago 😟

retiredbanker1

Just my thoughts on this - as you get older employers take less notice of you (generally speaking) they tend to concentrate on younger people who are either up to date with tech etc or think will be at the company for year to come.

What happens if you are made redundant?
Would the redundancy net of tax be enough to cover the mortgage?

fullofcold

jackieblack said:

BrianW2022 said:

My partner wants to wait for a year possibly two to sort this out as we do have reasonably high outgoings at the moment with the renovations and as you said it is an extra expense. 

Waiting carries its own risks…

3 years ago (aged 52) I was researching life insurance as the policy I took out in my 20s was  due to end. Before I had gotten around to finalising a new policy I was, completely out of the blue, diagnosed with a medical condition that significantly increased premiums. Since then, I have been diagnosed with additional lifelong conditions that now make premiums completely unaffordable for me. I should have ‘bitten the bullet’ and been more decisive 3 years ago 😟

Hindsight is a wonderful thing jackieblack.  I am sorry to hear of your illnesses though.