Life Insurance and Critical Illness cover

[KittenCatt]

I’ve just taken out life insurance (£150,000) and critical illness cover (£20,000) with AIG. It costs £32 a month for both of these. I’m 26, does this seem rather high to you?

Totally depends on your circumstances - mainly your cost of living and dependants. Personally I didn't have life insurance until I had children, then DH and I both made sure we had enough that the other one would be left with enough to pay for childcare and the mortgage if the other was killed. For comical illness cover, how much money would you need to keep you going comfortably if you couldn't work during lengthy treatment?

It’s for 48 years btw

I had a life insurance policy for £200k cost £22 a month. I'm nearly 60 so this was 30+ years ago I took it out so I think that is pretty cheap. Critical illness is what costs more. Your critical illness cover is quite low. (15k) you might want to look at getting one to cover mortgage or other big things.

@Musicaltheatremum I can’t afford higher monthly payments, I would otherwise!

I looked into this recently and had similar quotes. I'm 33.

At least you have made a start. Critical illness is so expensive.

Life insurance is generally useful to support your dependents in the event of your death. I can't imagine any dc of mine (or yours) being financially dependent on me at age 74! Very unusual to have life insurance for 48 years to age 74.

Will £150k pay off your mortgage?

You're also more likely to be diagnosed with a critical illness than die during a mortgage term.

is your partner a death beneficiary on your pension if the worse were to happen? For us, that would be a significant payout if one of us were to pass.

I agree though, critical illness is very expensive.