Critical illness £130 a month- do we need?

[minimini358]

Just looking for some opinions after speaking to our mortgage broker who referred us to their financial advisors for life insurance.

They have basically put the fear of god into us that we need critical illness cover of at least £100,000 in addition to our life insurance. This is coming out at £130 a month which whilst we can afford it at a push, it will mean we are really close to having no disposable income.

We have a 20 month old daughter so want to do what's right to protect her but also with the cost of living we are feeling the squeeze like most. I'm just mindful that even though these are 'independent brokers' they may get kick backs from more insurance products they sell.

Thanks for you advice!

I went with 40k critical illness cover, it was enough and £20 a month- it has enhanced child cover, should my children get sick. I’m happy with the policy, plus life insurance at £10 a month + salary x 4 on death from work.
yours is very expensive, have you worked out how much money you’d actually need

Thanks so much for all of your replies - having spoken to an IFA we think that right now having life insurance to cover the cost of the mortgage plus then having income protection at £2k per month until retirement was a cheaper monthly cost for us that could give us piece of mind should anything happen that we could cover outgoings. This is going to save us around £40 per month which we could definitely do with until we are on our feet with the new house and have had our second child.

Maybe we will reconsider critical illness once our salaries increase slightly and we have some more disposable income as it sounds like it has helped lots of you.