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Life insurance / mortgage cover - confused!

(9 Posts)
Pagetta Mon 25-Apr-16 21:39:01

So we complete on a house on Friday I want to sort life cover but am confused...

We've got 2 kids (or will in 7 weeks!)

Hubby is military so has various life policies through that.
He gets 6 months full / 6 months half pay sick pay
He is also annoyingly an occasional smoker (I was, but not in last year, which is what is asked by policy)

I have a low level death in service cover and 3 months full / 3 months half sick pay

I am thinking we just get level term life insurance to cover mortgage. Not critical illness though.

But we are doing help to buy so I need to cover that loan too - do I just whack that on the total life cover required?

Also if it's a joint life policy and just one of us dies do they pay out full amount or just half?

Can anyone recommend anywhere?

With two kids and a whopping mortgage I want to make sure we have things covered in the event of one of us dying, but equally don't want to pay over the odds!

StillRabbit Mon 25-Apr-16 22:05:29

Many years ago I worked in financial services.

On a normal joint life policy the full amount amount would be paid out on either death. When we had our initial mortgage we had a joint life endowment policy as we had an interest only mortgage; when we subsequently added a bit extra to the mortgage on a repayment basis we took out two single life policies for the loan amount. At that time we were quoted £10 pm for joint life or £11.50 for two single life (meaning a double payout for the children if we both died together).

Critical illness policies were in their infancy back then so I can't comment on them.

Has your mortgage advisor not suggested what policies you need?

scaryteacher Mon 25-Apr-16 22:19:07

Has he got insurance through PAX, and have you got the Forces help to buy? His death in service will be quite good, and depending on which pension scheme he is on, you will get 50% of his pension if he dies before you.

I have decreasing level term, which ends when the mortgage does. Never bothered with critical illness as if it was Dh, the Forces would have medically retired him with the appropriate enhanced pension.

Pagetta Mon 25-Apr-16 22:55:00

mortgage advisor was trying to sell us some overblown policy he's on commission for which was coming it at nearly£200 a month....! looking online its going to be about £80 i think.
Yeah DH's cover and pension etc all good so not fussed about critical illness cover - just want the basic loan covered i think. Pondering decreasing level term, as although that would only cover mortgage, all our other policies would give kids extra!

SteveO1969 Tue 26-Apr-16 08:06:14

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Sunseed Tue 26-Apr-16 17:10:54

But, for the avoidance of doubt, you would receive a commission - yes?

bloodynoris Tue 26-Apr-16 17:19:35

Hi, what kind of insurance does your husband have? Pax? Sli? Or with a company who come on to a military base? As he may need to too his up. I know with pax people put it up and down depending on whether they are deploying or not. For your self you have a big market to choose from. If you want joint just make sure it doesn't pay out on first death. I was a financial adviser up till Feb so can answer any questions you may have.

SteveO1969 Tue 26-Apr-16 17:29:12

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Pagetta Tue 26-Apr-16 17:54:47

thanks all - helps a lot! SteveO - thank you for the advice nice to get some that isn't trying to emotionally bribe me into some overblown cover!

We've got all of hubby's stuff listed, so for him just want really basic mortgage decreasing cover.

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