Impending fatherhood, what insurance to get?
Discussion
In a nutshell: I'm expecting my first child in December, and the mind has started to wander on to all things sensible and befitting of a family man, such as buying a Volvo estate and trying to find a way of hanging on to my M5. I also want to protect my other half and offspring should the following happen: death, redundancy, critical illness, serious accident. What products do I need to consider? I have a mortgage on a house which is rented out, but we don't currently own a house together, although will look to buy in 18 months. I'm hopng there are a few non-shark IFAs on here who might be able to point me in the right direction....
Stevemr said:
Two priorities.
Family income benefit.This is life insurance that instead of paying out a lump sum, pays out so much a month if you die, for the period you set it for, so you would set if for an amount you would want them to have to live on, over say 21 years until after uni age. Not at all expensive if young, no health issues and non smoker.
Income protection or permanent health insurance - pays out amount per month set at start usually 50-55% of your salary tax free every month if you can not work through illness or accident, set up to start when work sick pay finishes, set up on own occupation basis, index link it to RPI, if possible make sure its with a company that will give guaranteed premiums that also only increase with RPI (many increase faster)
This will pay out until you get better or until you retire at say 67 (if set until then)
Better than critical illness, as covers all illnesses not just a select few.
Set these up right now, while young and premiums relatively cheap (and you are likely to have less health issues ) and you will probably never need to change them.
Useful post, thanks. Is there an income protection/ PHI policy you can bundle with one that covers you for redundancy/ job loss too?Family income benefit.This is life insurance that instead of paying out a lump sum, pays out so much a month if you die, for the period you set it for, so you would set if for an amount you would want them to have to live on, over say 21 years until after uni age. Not at all expensive if young, no health issues and non smoker.
Income protection or permanent health insurance - pays out amount per month set at start usually 50-55% of your salary tax free every month if you can not work through illness or accident, set up to start when work sick pay finishes, set up on own occupation basis, index link it to RPI, if possible make sure its with a company that will give guaranteed premiums that also only increase with RPI (many increase faster)
This will pay out until you get better or until you retire at say 67 (if set until then)
Better than critical illness, as covers all illnesses not just a select few.
Set these up right now, while young and premiums relatively cheap (and you are likely to have less health issues ) and you will probably never need to change them.
Jockman said:
Correct. Think ahead too. Your debts may increase as you get older and you move up the housing scale. Tie in to higher life cover than you require if there is only a minimal increase in premium.
Oh, and stop being selfish
Get your new born a pension straight away with a small monthly drip, added to by the Government. Then you will evidence the beauty that is compound interest.
And don't name your child Fang or Zorb or any other name you kids see on your XBoxes
Haha, I'm not that young (35) although do own an Xbox. Am investigating the pension thing.Oh, and stop being selfish
Get your new born a pension straight away with a small monthly drip, added to by the Government. Then you will evidence the beauty that is compound interest. And don't name your child Fang or Zorb or any other name you kids see on your XBoxes
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