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Original poster

Talk to me about life insurance please

6 replies

confusedlots · 14/02/2023 16:05

I want to get life insurance sorted for me, but anytime I try to look at it I just get confused about what I need, how much cover etc. I'm married with 2 young kids, a fair sized mortgage and work part time. I guess ideally i'd also like some sort of critical illness cover too.

Please tell me how to make this more straightforward!

OP posts:

SunshineAndFizz · 14/02/2023 16:12

A popular approach is to get enough cover to pay off the mortgage if you die/get critically ill. With this the payout amount often reduces over time as your mortgage reduces.

Mamamia7962 · 14/02/2023 16:13

Is your life insurance not tied in with your mortgage, that was one of the conditions of us having a mortgage although that was 30 years ago, so maybe it's all changed now.

Mamamia7962 · 14/02/2023 16:17

Just to add we had level life insurance which meant that the payments stayed the same every month for the duration of the mortgage rather than having decreasing payments which went down as the mortgage went down. This meant that if one of us had died we would have been able to pay off the remaining mortgage plus have a lump sum as well. Critical illness cover is more expensive than just death cover. The best thing to do would be to make an appointment with a financial advisor who will be able to go through all the options with you depending on your monthly budget.

stuffnthings · 14/02/2023 16:22

As a pp said, usually get sufficient to clear the mortgage (Get a policy for each adult to cover the full amount), but I would suggest add more. I (we) never thought we'd need it, but sadly my DW died a couple of years ago in her early 40s.

Without the life insurance and also the critical illness cover used during treatment, it would have been financially much harder to remain in our family home, which would be have been another blow on an already devastating and emotional situation.

I would say to any adult to get life insurance, get wills in place also, don't put it off.

PizzaPastaWine · 14/02/2023 16:23

My advice would be to get individual polices. When I divorced my ex I was so much older and it was so much more expensive.

I have level cover with critical illness.

D20 · 14/02/2023 16:47

Check whether you have a death in service with your job. The less you need to cover the cheaper your policy will be.

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