Life insurance inc. critical - remortgaging/getting older
Discussion
I'll keep this vague so I don't give away the family secrets
Wife and I are early 40's and in the process of re-mortgaging. New deal is for 25yrs but we expect to pay it off within next 15 (or sooner).
Current life insurance is level cover with critical illness about 25% of that amount.
We are now considering increasing critical cover to 100% of the mortgage and have two options:
In the above scenario, option 1 is broadly the same cost as we are paying but inmy mind it's 'less' as the on-death payout is less. Option 2 is naturally more expensive which triggers my aversion to anything insurance related.
Opinions welcome as I feel I need a sense check here.
Wife and I are early 40's and in the process of re-mortgaging. New deal is for 25yrs but we expect to pay it off within next 15 (or sooner).
Current life insurance is level cover with critical illness about 25% of that amount.
We are now considering increasing critical cover to 100% of the mortgage and have two options:
- Move to a new provider and the life insurance benefit drops to match our newly re-mortaged amount but critical will cover the full amount.
- Move to a new provider and keep the original life insurance benefit (pre re-mortgage) and have critical cover and the newly re-mortgaged amount.
In the above scenario, option 1 is broadly the same cost as we are paying but inmy mind it's 'less' as the on-death payout is less. Option 2 is naturally more expensive which triggers my aversion to anything insurance related.
Opinions welcome as I feel I need a sense check here.
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