We have a £264k mortgage to be paid off over the next 17 years, just before we retire. There's a reasonable chance that we will pay it off early through a combination of inheritances and share bonuses, but we're not relying on that as a certainty. We have 2 DCs age 14 and 12.
Our current life cover is as follows:
150k joint life policy, expiring in 9 years time but can be extended subject to review - (we've had this a long time so at a premium of £15 per month it seems relatively cheap compared to what a new policy for the same amount would be)
DH: 325k death in service benefit + 33k annual widow's pension (this is job dependent but DH has no current plans to move job and isn't currently at risk of redundancy). He is the main breadwinner, with a good salary.
Me: 75k death in service benefit. I currently work part-time in a professional role at 0.5 FTE, but could increase these hours if needed as our DCs are old enough. I do a lot of community work, so have remained part-time out of choice.
In addition, we've just had a quote for a joint £120k policy that will cover the 17 year mortgage term, decreasing at a rate of 8%. I think this is probably the minimum we need to make sure our mortgage is fully covered, and it will cost us £24 pcm. The original quote was revised upwards because DH has had some health problems recently. If we take this out, out total monthly outgoings on life insurance will be £39, which seems about right to me, and gives us a level of cover I feel comfortable with.
Does this seem reasonable? I know people will tell me to talk to a financial advisor, but I'm wary of them selling us insurance we don't need.
I've looked at Critical Illness cover, but the costs are extortionate, so we may have to accept that we can't cover that risk.