Re protecting income

[moneymatr]

So im married with 1 child who is disabled. He needs lots of support limiting my working capabilities. He's likely to stay at home throughout adulthood. We are in our forties. My husband has a substantial pension pot which he pays £££ into every month. I work very part time and actually earn less than he pays into his pension. I pay 1/3 of my income into mine which is about roughly £100 a month. My employer pays I think £16 a month. So obviously my pension is smaller which assuming we both live to pension age is fine but I'm concerned if dh were to die young whilst I would get a payout it would not be the same as claiming his pension. So I'm thinking of taking a life insurance out on him for maybe £100k so then i would get his death in service, pension, 100k and mortgage paid. Prob around 400k which would help me continue to support our son and hopefully have money towards retirement. Does it sound sensible?

Also we have no critical illness cover currently. We pay £11 a month for life cover to add critical illness would take it up to £54 a month. I'm considering doing income protection instead where we protect a portion of dh salary until retirement. So if dh became unable to work we could protect some of his wage so say £2000 a month protection costs £27 a month which coupled with life insurance is cheaper than critical illness which would only pay the mortgage off anyway. Is this a good idea?

I considered going to a financial advisor but I'm assuming they cost???

Hey,

I'm a financial adviser and can help you.

We don't charge for insurance advice.

Some products need to be advised on, and won't be available on comparison websites. Dm me and I'll share my credentials.

Do all independent financial advisors not charge?

Just a tip - if an advisor isn't charging you then they are being paid by the supplier so they are NOT independent. I'm not saying it's necessarily bad (personally I prefer to pay for indep advice) but be aware. Good on you for taking sensible steps to protect your financial future.

Almost every product provider pays the adviser commission. Regardless of their status. Even if you deal directly the commission is paid to their own staff.

This is disclosed on the terms of business, which is provided at the start of the advice process.

The word 'independent' is subjective. I deal with all insurance companies that are happy to deal with me. There maybe companies that you can only work with directly.

Op you've mentioned income protection, there are a few types to consider, and due to the tax complexities most insurance companies prefer this product to be advised.

Depending on the type of advice the adviser may charge.

For mortgage advice I may charge, we do not charge for insurance advice, and you will find that most advisers won't. If you've been quoted a fee then they probably don't want your business.

When I was offering investment advice, (I don't anymore as I'm not concerned about helping the rich stay rich) there are many ways to charge, however there would usually be an advice fee as this area is an area of specialised advice, involving time consuming research and risk relating to the advice.

Hope this helps explain things.

Thank you

Depends what type of pension he has. If it’s a defined contribution pension and he dies before 75 (and leaves it to you) you would get the whole fund tax free.

At your ages life insurance is unlikely to be good value and beware of people who say they are offering you something for nothing.