Life insurance inc. critical - remortgaging/getting older

[TheFungle]

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:

• 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.

or

• 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.

We both have good life and illness packages with work but naturally it's good to be as protected as possible.

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.

[dalenorth]

Drop me an email and I’ll get one of our advisers to help you out, we look after lots of PHrs on a preferential rate.

[e-mail]

[Insurancejon]

dalenorth said:

Drop me an email and I’ll get one of our advisers to help you out, we look after lots of PHrs on a preferential rate.

[e-mail]

I’m one of those PHers, and have used Dale for years. Always good quality advice