How much life assurance is required?

LEWKI

Hi everyone

I have jumped over to this board from DFW. I got some great advice and someone questioned the total of my LA payments from my statement of affairs. Can someone independantly advise me on what assurance I require or is normal.

Basic facts:

I am 35. Ex smoker - only 3 months though:o
I am married. OH is 32 and never smoked etc.
We have 3 young children, 8,7 and 5 years old

From work, my company will pay 3 x my basic salary. This would total £186,000. My wife is self employed so no such "free" benefit

We have a joint mortgage of £140,000 with 18year term.

the cover we have is all through MGM Assurance, the monthly costs are
1. £49.26 for decreasing term
2. £16.39 for sickness cover. I think this pays only £800/month if I am off sick
3. £10/month provides £100k cover additional on my death
4.£10/month as above but on my OH death

My question is, what is normal cover? I am paying £85/month...does this seem high considering the company benefit my family would get? All advice very gratefully received

Thanks you

CLAPTON

on your death does your pension pay anything to your OH or for the children?

what sick pay arrrangements are there will your work?

superficially, decreasing LA costing 49.26 on 140,000 seems expensive in relation to 10 for 100,000 (but maybe the 10 is only a short term insurance)

whether its too much etc depends upon what you can afford

TEDDYRUKSPIN

Clapton. He is a smoker.

One thing you have greatly missed out is if the customer has any medical problems.

Lewkie.

Death in service should never be used for the mortgage. This is, in your case, be used to provide an income to your family of roughly 3 years if you pass away.

I would really doubt that your advisor (if MGM, I assume IFA) have done anything wrong.

The additional life cover outside the mortgage? The FSA state 5X your income.

Get a thorough financial review carried out.

LEWKI

Thanks for the advice. I agree that I need a complete financial review. I am looking at reducing my DD to clear £12k debt as fast as I can, however, I am not going to do this to put family at risk. I will arrange meeting with my IFA and discuss. Thanks for your advice