Life insurance options - new baby

rubyjones13

Hi all, I've checked the MSE post but I'm still struggling to figure out which policy to get. I would appreciate suggestions. Things to consider:

-We are not married (planning to in next 4-5 years)
-We have one child who is 14weeks old
-We both own flats that we do not live in (my partner has a mortgage, I don't)
-We rent our house
-We have no debt and some savings (between us about 35k)
-We are 31 and 32 years old 
-My partner is self employed recently so slowly building up private pension
-I am employed with a good pension and death in service package but currently on maternity leave
-We don't have wills yet - again planning on doing this next year during free wills month (this year baby brain dominated in November!)

Is it best to see a broker or is there an obvious choice for us? Do we have to have separate policies as we aren't yet married?

DullGreyGuy

Are you just asking about life insurance or considering other forms of protection insurance like Critical Illness, Income Protection etc?

You can have separate or joint policies, no need for you to be related or not. Joint policies can be written to trigger on the first or second death. 

What you need will depend very much on what you want to protect for, what your plans would be if either of you were to be hit by the proverbial bus next month? Could you afford to maintain your current lifestyle without his income? Could you continue working full time with the kid if he isnt about? Likewise what does he do if you go tomorrow? Can he survive on his business income? Do you think 16 year olds should be out at work or do you hope they stay in education until they've got at least a Masters? 

Whilst you are young and healthy Life is very cheap and so most will go for a broadly appropriate number on a level basis (which arguably is a decreasing basis given inflation will eat into its value). A whole of market broker will give you advice and won't be more expensive than going direct to an insurer, going direct will be a non-advised sale so they cannot tell you if what your quoting for is the best option for you and your needs. 

Remember wills are automatically invalidated by marriage, you can put in a clause about your forthcoming wedding to prevent it but it has to be very specific and not speculative. 

rubyjones13

DullGreyGuy said:

Are you just asking about life insurance or considering other forms of protection insurance like Critical Illness, Income Protection etc?

You can have separate or joint policies, no need for you to be related or not. Joint policies can be written to trigger on the first or second death. 

What you need will depend very much on what you want to protect for, what your plans would be if either of you were to be hit by the proverbial bus next month? Could you afford to maintain your current lifestyle without his income? Could you continue working full time with the kid if he isnt about? Likewise what does he do if you go tomorrow? Can he survive on his business income? Do you think 16 year olds should be out at work or do you hope they stay in education until they've got at least a Masters? 

Whilst you are young and healthy Life is very cheap and so most will go for a broadly appropriate number on a level basis (which arguably is a decreasing basis given inflation will eat into its value). A whole of market broker will give you advice and won't be more expensive than going direct to an insurer, going direct will be a non-advised sale so they cannot tell you if what your quoting for is the best option for you and your needs. 

Remember wills are automatically invalidated by marriage, you can put in a clause about your forthcoming wedding to prevent it but it has to be very specific and not speculative. 

Wow thanks, a lot to think about. I also didn't know wills were invalidated by marriage! It sounds like a broker is the best option for us!