Gear Head

iTrader: (2)

Looks like I'm actually growing up.
Have been with my mrs for 8 years, been married for 3 months.
We have a mortgage together which obviously has life cover on it.
We want to start looking at a separate life insurance policy, just incase something happens to one of us.

What type of cover and what sort of amount is recommended to go for. We are both 25, are employed, no health problems and no kids. (yet!)

Ta in advance!

Gear Head

iTrader: (2)

anyone?

Midlife......

iTrader: (2)

I've got several life assurance policies (note that death is assured.....there is no escape).

As time goes by and costs of living increase and kids come along and the mortgage rises (bigger house) I think about another policy

If the mortgage is covered and there are no kids involved do you actually need additional life cover ?

Shaun

Jay m A

iTrader: (2)

If its a joint mgge you might have a joint life insurance on it, which usually is marginally cheaper than 2 individual life policies. However on the joint policy if one of you croaks it then it pays out, thats it, the other person now doesn't have life cover. However if you have 2 separate life policies, when one goes then the house is paid and you still have life cover on the other.

Check your mgge life cover policy, we were advised 2 individual policies although slightly more expensive is much better in the long run, basically if you both die in some accident the kids get double the payout than that of the joint policy.

Gear Head

iTrader: (2)

For the moment, a joint one will be fine.
That is the case for our mortgage life cover. If one dies, the mortgage is paid off. I would just like to have something else in place. Maybe 100K, or even 250K if the payments are not to bad. Is this possible for around £50 a month?
Also, what premium hike is there usually to include critical illness?

HankScorpio

I think you're right to do more than mortgage, I'm lucky enough to get through work and that's 9.5 x salary. That will sort out funeral, pay off my debts and leave mrs with a decent amount to get on with her life with a similar lifestyle as I earn a lot more than her.
Paying off the mortgage is all very well but if she has no other (or low) income then keeping the house up may become very difficult.

Can't help with costs I'm afraid.

Gear Head

iTrader: (2)

anyone else with experience of this?

Gear Head

iTrader: (2)

Been quoted:

Single

100K for 25 years cover - £14.70 per month
250K for 25 years cover - £31.00 per month

Joint

100K for 25 years cover - £17.50 per month
250K for 25 years cover - £34.00 per month

Sound good?

boxst

Did you check at work? Quite a lot of employers give life insurance for free. Mine is 3.5 times salary (I'm amazed at the 9.5 above!).

Steve

HankScorpio

Yep, pretty generous, I can up it to 12x if I contribute but would rather have money now than when dead!
Mrs will have loads if it comes to that.

Scooby Snacks 23

Post A-Day (Pensions Simplification) alot of company's are starting to give out much higher life assurance lump sums without providing any dependants pensions, which in some case would be more beneficial (usually to the younger generation).

We have a joint life policy attached to the mortgage which pays it in full.

At work through my pension, there is a 4 times salary lump sum (£180K), plus 1/3 of salary as a pension to my wife (£15Kpa with RPI increases for the remainder of her life), plus 1/15th of salary as pension to my kids (£3Kpa with RPI increases to 18 or 23 if in FTE).

However, as she earns alot less than me, even with no mortgage, I need to top up my life assurance.