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You need to work out your requirements first and take it from there.
Right now with 2 young kids we are under-insured.
E.g. Our policy is ~£30p/m and pays out £300k. At the time we took it out or mortgage was ~£320k. So the idea being it would provide a lump sum that would pay off the house.
However, now with young kids, inflation, cost of living, and the fact that the survivor would probably have to change jobs to look after the kids resulting in a massive decrease in income that would mean that £300k would no longer pay off the house.
If you're not sure where to start speak to an IFA. It's there bread and butter.
hugo7-
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You need to work out your requirements first and take it from there.
Exactly. It's a bit morbid (and a bit like the considerations in writing a will) but what would happen if:
a) you die
b) your partner dies
c) you both dieIn all situations we would want to make sure the mortgage can be fully paid off and there's the equivalent of a few years income (after tax equivalent) that would take a lot of the burden off the next couple of years for whoever is left. Slightly easier for us as we only have one kid and she's already a teenager.
Through Life/CI policies taken out with the mortgage, Life Cover through current job and an extra policy to top up, if I carked it then Mrs GB would have the mortgage paid off plus she'd get ~10 years of my after tax income as a lump sum.
It's not quite as good the other way, but with a new job for her coming soon we'll reassess and make sure the majority of the gaps are covered.
ExTra
Greenbank
Any pointers for life insurance that doesn’t cost the earth?