To ask where to start with life insurance

[sarah8484]

I have no idea where to start... Im so confused, ive just got a quote for a life Insurance amount of £40000. That's paying x amount for 40 years. What happens if i die before the 40 years? Will they still pay the £40000 or just what ive paid in? Help please

Most will pay a set figure upon your death within the insurance period. So if you insure for £40k that’s what it pays out. If you stay alive for the entire period you get no return other than peace of mind.

We did have one policy which would have paid a set amount each year when our dc were young but I think that’s more unusual.

So you need to assess how much your dependents would need to be comfortable should you die and insure your life for that sum.

Thank you. Makes more sense now.

If you get a quote through a broker such as Cavendish then you simply pay a fixed fee of £25 or so to arrange the policy. This can mean saving quite a lot in comparison with comparison websites, advisors or going direct.

We took our cover based on:

Paying off the mortgage
Childcare (assuming a nanny rather than nursery if only one parent available)
Something for the children and provision for education.

Basically if one of us died when the children were young we’d have no money worries to add to grief etc. The amount of cover will vary family to family. I’d be more financially screwed if my husband died than the other way round.

Moneysupermarket have some info on their life insurance quotes page.

You could try moneysavingexpert he gives good advice.

We got enough to cover the mortgage. Two separate policies not joint.

Term was as long as the mortgage. If I'd thought about it would have got longer, as we've extended the mortgage, it's cheap compared to now due to inflation i suppose.

Did mine last year and found them very helpful.......gave me some good advice-i have it that the mortgage is paid off and there is a lump sum in the event that i die.
In an ideal world id have critical care cover but i couldn't afford that. I was expecting this to be really pushed but infact the gentleman i spoke to just said do what you can afford and add it on at a later date.

Check that you need it before you buy it. Do you have children and a mortgage, and do you get death benefits from your work?