Do you have life insurance?

Yes. We are a normalish household he earns £75k and I work 2.5 days a week for £30k. We didn’t used to but now we have one that pays off the mortgage and good death in service plans. I just feel that any less would leave the other really struggling regardless of who.

I’m paying serious consideration to critical illness cover, we are public sector with good sick pay but having seen colleagues have serious time off with illness im wondering about it. It’s mainly his salary I’d like to insure. Thing is I’d also like private medical cover but there’s only so much I want to be paying out every month.

If I were you op, the minimum I’d insure would be the mortgage.

Not any more. I did have critical illness and life insurance but it paid out when I got cancer nearly 5 years ago. I made a lot of crap financial decisions in my 20s, but taking out life cover wasn't one of them.

I'd recommend Cavendish Online - part of lloyds banking group but they are whole of market brokers. (recommended by Martin Lewis - see the money saving expert website).

1.Mortgage protection to pay off loan if either of you dies. Separate policies ( not joint) in case you separate/divorce but your children would still the money. Write it in trust so it doesn't count as part of your estate and will be paid out very quickly rather than being paid out after probate is done. You will need to appoint trustees to look after the money if your children are young.

2.Consider an annual tax free income say at least to youngest being 22+ or finished Higher Ed. Much cheaper than insuring a lump sum to give you the same sort of annual tax free income. Written in trust as above.

3.Critical illness usually gives a lump sum if you are diagnosed with illness likely to cause death within a year or so, so not sufficient as protection if you develop a non fatal condition which would stop you working. The crucial thing with taking out Income Protection is choosing a company where the definition is 'being unable to do your own job' not 'any job' where it is much easier for the company to decide you could just become a waitress, postman etc. and decide not to pay out. Usually the Income Protection is paid out tax free and you would also get some long term state sickness pay out so as a rule the most you can insure your income for is 60-65% of your current gross income.

And before you do any of the above, discover what in service benefits you may already have through eg a public sector superannuation scheme or other work's offering. NB Despite the fact you may have left the scheme eg the Teachers' Superannuation Scheme years ago you may well still be able to access some benefits depending how many years' service you had, (minus the enhancement you'd get in service of course ), if you subsequently fall ill and unable to work. I have met many ex nurses, teachers etc who could have been getting a pension but didn't realise. For this reason alone it is worth keeping up your Union membership if you leave a job as they will be able to advise you.

If eg you would get 6 months full pay then 6 months half pay before going onto the long term sick pay rate it will be a lot cheaper to provide an Income Protection policy than if you need a policy which would kick in very quickly. An IFA ( Independent Financial Adviser ) or Union will be able to do the calculations for you.

This was 23 years ago too.

just being nosey! Was going to say I nearly took that out but then did some other research and found cheaper for the same, but the hsbc advisor acted like it was the only option, turns out it was the only option they could sell. But moot point for you as you didnt take a mortgage :)

Always had it, to pay off the mortgage. Now coming to an end.

Yes I think and no as didn't have a mortgage.

Yeah I do I have 5x my salary
IP
Critical illness and a separate life insurance policy for my mortgage

Is your cover hsbc life? Did you get it with hsbc mortgage with a hsbc mortgage advisor?

No, we don't

Yes
I pay £15 a month and it pays out £350k I think. Everyone w young DC should have IMO.

No because nobody will insure me with all of my chronic life-long but not terminal (or likely to kill me) diagnoses without a hefty monthly bill.

I have a death in service payment. Thankfully my DC are grown up now (youngest is 16) as I always worried about this, though not a financial worry, as their dad (my ex) has enough cash, day to day he would be ok, but making appointments for medical etc and christmas / birthdays would have been very different.

@WisteriaSister You should be able to get insurance once a bit more time has passed since it was removed. Try again in a few months. Early stage melanoma doesn't make you uninsurable for ever.

No, I don't have any kids so I don't think there's a need for it. I have critical illness cover though as I live alone and would be financially vulnerable if I couldn't work due to an illness.

I meant to add that we also have critical illness cover.

We have a joint policy with aviva that pays out about £400k. Cost is just under £40 a month I think. Plus death in service from work.

No. When I was young mum with a mortgage had endowment mortgage plus work pension that paid 3 times salary upon death. I'm early 60s now so don't need any back up plan.

No, mainly because I have a decent sized death in service benefit from work. If that changes, I'll get insurance.

Me too! I had a pre-stage 1 melanoma removed last year and now can’t get life insurance. It’s ironic really because the melanoma was only found because I’m so vigilant about my health! Three doctors said it was nothing to worry about but I pushed for a removal and a biopsy anyway. I feel like I should be rewarded with cheqp
life insurance for being so cautious 😂

Yes. I have a policy that would give DH €200,000 in the event of my death. He has the same.
We also have mortgage protection so our mortgage would be paid off by that policy in the event of either of our deaths. You cannot draw down a mortgage in Ireland without it.

@IKnowAristotle Did you use a broker? They can try other insurers for you. Just because one has declined you doesn't necessarily mean they all will. Those over 50 plans are often not good value. They're a last resort really so it's worth exhausting all other options first.

No. To be honest, it just seemed like one of those things only homeowners have, or people with kids... none of which apply to me.
I am very financially illiterate though.

No, tried earlier this year and got declined. It does stress me out tbh but I do have death in service which would provide about 100k. Going to wait now until I'm 50 and get one of those "no questions asked" policies and a free fountain pen.