Life insurance

[smellsofelderberries]

How much cover do you and your spouse have?
1DC, 1 on the way. I haven't worked for 2 years and we aren't planning on me going back to work in any real capacity until both children are at school, so my earning potential is v small.
Cover for DH would pay off our mortgage plus leave about £160k in savings, which sounds huge but given our current situation makes me worry that we would end up struggling by the time the DC are in high school (if not sooner). Friend said she has enough cover to pay off debts, have around £120k per child to cover expenses until their 18th birthdays, plus a years salary on top so one could have time off work if something happened to the other. They both work in v good jobs and friends earning is equivalent to that of her husband.
How do you work out what your spouse should be insured for?

Single mum

£150k critical illness
£300k life

My mortgage is £189k (£650k value)

Ex husband £1.2 million life
No idea critical illness

In terms of calculating it’s about considering your way of life and what you would want to happen in the event of your death.

Move?
Childcare?
Private schooling?

You need to figure out what you want it to cover. That will be different for each person and household.

We only have about £200k as both of us work and earn similar amounts plus we don't have a mortgage or children. This would be sufficient but for others with mortgages and children it wouldn't be.

You want cover for you too, not just your husband. I know that you say your earning potential is small but think of the impact that it would have on your family if you died. There would be higher childcare costs for one thing. If you had life insurance it would also allow your DH to have some breathing space to maybe change to a less demanding job or reduce his hours so he can support grieving children.

It is as critical that you have it as husband

I’m a SAHM! Albeit returning to work very shortly but i have had life assurance ever since I had children

We have one DD and no mortgage (currently rent). We only have £100k each life cover but also if one of us dies, the other gets £2000 per month per living child under 18. So really the £100k would be used for deposit and then £2000/month would cover an ok salary until the child is 18.

Ah brilliant, thanks all. This is super helpful.

I should have said, I do currently have life insurance but it's a policy which reduces with the terms of our mortgage and hasn't been updated since pre-DC. It would leave DH mortgage free but only with whatever savings we currently have otherwise. Will definitely update ASAP once DH and I have had a chat about what we would like to leave for the children.

When we sorted this out DH was much more panicked about the loss of me to the family than him. Because although I am lower paid (part time) what I cover for the family would cost a lot to replace and far exceeds my actual income.
Flexible childcare for day night & weekends (DH is Hospital dr) , household chores, transport, DIY, gardening, maintenance, nursemaid, shopping, cooking, homework coach.... as well as my income.
He could do some of it but to continue with his job and raise the family would require a lot of input that would have to be paid for.
Without him we would need to cover the loss of his income.
The problem for us comes with critical illness as due to a pre-existing illness I am uninsurable.

Ours is big and level term. At the moment it would clear our large mortgage, cover school fees for secondary school for two and provide extra so we could get a nanny to sort childcare for a few years as we’d struggle with nursery timings with just one parent. If i die I also have generous death in service benefits but those are job dependent so wanted to get good life insurance in case I leave. If my husband dies, I get bugger all from his work.

Having good insurance is important to me now when I have small children, high childcare costs and the biggest mortgage I’m likely to ever have. We don’t have critical illness cover though which does worry me a bit.

Mortgage covered plus £150K if the working parent dies, which should cover remaining costs of living until the kids are school age and the SAHP can go to work. £200K-ish if the SAHP dies, which should cover a live-in nanny for about the same period. Still going to be a struggle after that point, though, so fingers crossed we don't die ;-)

Wonkylegs

The problem for us comes with critical illness as due to a pre-existing illness I am uninsurable.

You are not uninsurable.
I’ve only ever worked in Insurance.
You may have to pay higher premiums. And the pre existing condition will NOT be covered.
However any illness not related to your pre existing condition WOULD be covered

We have £200k critical illness which paid out when DH was diagnosed with cancer. He has £1m in death in service if he dies so we’re ok. The critical illness was joint so I now need to get my own Critical and life insurance.

How much do you all pay per month (if you don't mind me asking)? DH and I have £412k life cover each (which covers the mortgage left) plus £10k critical illness and DH has income protection which covers the mortgage payments for up to a year. DH smokes (well vapes) and we are both overweight or obese and we are paying £160 a month in total.

£61 for life and critical illness
£105 for health (Under’active thyroid)

Ugh, we have nothing. No pensions either, I've been prioritising getting a pension set up, maybe I should rethink. Although you do get the pension money you've accumulated if you die, whilst the insurance is just gone if you don't.