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We have it currently to cover the mortgage, but I'm going to get another policy, just so there is something spare if, God forbid, anything were to happen to us. I was thinking-maybe about £100k? Obviously it wouldn't enable me/DH to not work forever, but maybe a year or two whilst we sorted ourselves out?
I know this is morbid, but I didn't know how much was sensible and affordable?! Do other people have policies that would enable them to never work again if their DH died??
I doubt anyone can afford a "never work again" amount, as the premiums would be enormous!
We have life assurance with the mortgage, which would pay it off if either of us dies.
Plus we are both lucky enough to be in pension schemes - mine would pay out 3 x annual salary if I died, I think DHs may be 2 x salary. I think that's a reasonable amount extra to be covered for - it would let one of you not work at all for a few years while the children were small, or to go part-time for longer, and cushion you against the worst of it.
I think looking at it from the point of view of current salary helps make it more real - without mortgage payments, you could probably manage on half your current household income, at a guess? So insurance for a year's salary would let you manage for a couple of years. Multiply up from there, depending on things like the number and ages of children - if you have several small children, then going out to work isn't going to be realistic until they are in school, and even then is likely to be part-time.
No, but again I'm lucky as the sickness cover at work is better than average. Also, I have doubts about what I've heard about some of the critical illness schemes being a bit reluctant to pay out and finding excuses to drag their heels.
We calculated it by, enough to pay off the mortgage as enough to cover what we individually contributed for a few years , if dh dies then his salary, if I die then child care and house keeper. I think working it out that way is more accurate for you.
We took out extra policies DD arrived- and as she is now 20 they must be about to expire. Need some more, but the Mortgage policies were level term & the Mortgage almost paid off (early) so we have that for a few more years.
Difficult to know how much to get once Mortgage gone as in 5 years time DS will have (hopefully) finished Uni and DD (should) be employed.
I have life insurance of £250,000. I took it out when DS was born. I worked it out by multiplying a basic salary of £15,000 by the 18 years that DS would need to be supported.
I Have critical illness cover included in this policy of £100,000, (i think).
It took a bit of persuading, and lots of medicals, as I had only just been diagnosed with post-natal depression. They were scared i would top myself! So I managed to get them to agree to not pay out if I did kill myself within the first 5 years, and a payout would not be paid out in the first year.
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Dh and I are insured enough that I could stop working if anything were to happen to him.
We have insurance to pay off all the bills, including the mortgage, critical illness cover on us both, and due to the job my dh does, his pension includes an insurance scheme that means that I would get a lump sum, a pension, and our dcs get a pension.
I've got critical illness cover and life insurance. My critical illness cover is for £100 000 and also pay out if I die. My life insurance is £500 000. My partner have the same amount so as a family we're covered for a total of £1.1 million. I've also got cover through work and when I take a new job soon the family will have a number of other service related insurances.