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Life assurance, please un-confuse me

(5 Posts)
drspouse Wed 02-Mar-16 12:52:10

DH is quite a bit older than me and I would earn more full time than him (currently PT) and we have worked out that if he were to die even before he reaches 65, we would get his fairly decent pension from his previous job, which would be about what we'd have got had he just retired. Childcare wise if he died I'd have to work full time and get a nanny but with his pension and my full time earnings that would be affordable. So we have decided that (especially since he has a medical condition) there is little point in getting it for him.

However I am in my 40s so have quite a bit of earning potential left, I was planning to start back full time at least when he retires (both DCs will still be in primary school then) and if I died before he did then my pension wouldn't be as much and certainly not as much as my earning potential over the next few years. He'd still need a nanny and possibly to move house with the DCs and I don't imagine he'd want to keep working for an extra 5 years though maybe a little bit longer than he'd been planning, but then of course even more childcare would be needed.

I think what we want is something that decreases till I'm of retirement age, to partially compensate for my loss of earnings? Or till both children leave school (not quite the same point in time though my brain can't quite work out what the difference is at the moment)? Or till they don't need childcare any more (i.e. till the younger one is about 12)?

How do I decide what I need, and how do we shop around? I really don't know where to go and of course there are lots of ever so helpful ads. Are the comparison sites any good?

drspouse Wed 02-Mar-16 12:53:16

PS we don't have a very big mortgage and we've had it a little while so we worked out that DH would be OK paying that off on just his salary/pension - so we don't necessarily want something to pay that off in a lump sum.

drspouse Wed 02-Mar-16 12:57:32

Oh and also we decided there was little point in getting critical illness cover, I could probably swing early retirement on ill health with my employer, DH certainly could, if it was permanent, and if I was going back to work we could manage a year or two without my income.

Kanga59 Wed 02-Mar-16 13:27:23

We went to a broker in our town who shopped around from the whole market and gave us a price of £65/month for £800k cover for my dh.

We were sorting our pensions out at the same time and the pension broker offered to beat the price. Which he did. Broker 1 then re-beat it and to cut s long story short, we are getting the first policy tabled by broker 1 for £52/month.

So my advice would be to go to two,brokers.

Only you can decide how much you want. It will partially depend on what you want to spend/can afford per month too. Use a compare the market website for initial price ball parks, then go to a broker

We went for level term assurance which is where the amount to pay out is always the same.nand the premium never changes.

drspouse Wed 02-Mar-16 13:48:20

Oh very good point about more than one broker!

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