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Life insurance - what plans do you have in place?

4 replies

TwinklyLightsForXmas · 08/10/2018 15:34

Sadly one of my friends has been diagnosed with terminal cancer and it's really made me think about financial planning if either DP or I were to pass away. A horrible topic to discuss but I've realised over the last few weeks how important it is to sort it now.

We already have a decreasing life insurance policy on our mortgage which will clear the balance if one of us dies. We also have death in service payments through work but because mine is more generous and I earn a higher salary, DP would get double the amount on my death than I would get on his death.

Our DS is at a private school so we would want to ensure that his fees continued to be paid but obviously our monthly income would be reduced to one salary if one of us dies. Is anyone willing to share what they've put in place from a financial security perspective? I feel like I should speak to an IFA but it would be useful to know what others have considered first. Thanks in advance.

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StrongerThanIThought76 · 08/10/2018 16:12

I have decreasing term assurance to pay off the mortgage. Then a fairly good chunk on top of that. If I was to die house is paid, there would be enough to keep the kids well into adulthood and more if/when they decided to sell the house. Don't forget to write your wills too!!

YBR · 08/10/2018 16:44

Decreasing life & critical illness insurance covering mortgage plus a bit (both)
An income replacement type policy to cover what DH does as SAHP
Generous death in service and sick pay (me)
between 3 & 6 months income in savings.

Wills (both)
Lasting power of Attorney (health and finances) (me)

BatsAreCool · 08/10/2018 16:50

Both have life insurance and fortunately no mortgage.

Also have critical illness which would mean we wouldn't need to worry about working for a few years.

Every year I usually up the amounts even though the premiums increase because the likelihood of needing either unfortunately increases Sad

TwinklyLightsForXmas · 08/10/2018 18:12

We have wills and power of attorney but thought that mortgage cover would be ok pre kids. Now we're paying school fees I think we need more cover. Good to know others have this too. Will get looking.

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