Life Insurance Advice Please

[dr_gn]

All,

I recently paid off the mortgage, and the life cover associated with it also ceased.

I've got wife + 2 young kids, and an in full time employment. Obviously I want to get some life insurace arranged asap.

Any tips? Things to look out for in the various policies?

Or is it just a case of going on Moneysaving expert and taking my chances?

Any advice or experiences on this would be really appreciated.

Thanks.

[dalenorth]

I would look at life and critical illness family income benefit until the kids reach dependency age. Work out your monthly outgoings and base it in this.

We've helped many pistonheaders with protection advice so drop me a pm if you want any help?

[Jockman]

Why did the Life Assurance stop?

Could you not keep it running?

[bobclayton]

Jockman said:

Why did the Life Assurance stop?

Could you not keep it running?

If the life assurance was associated to the mortgage then it'll be a decreasing term policy which effectively ends the moment the mortgage term naturally ends.

[Jockman]

How does the life assurer know the mortgage is paid off?

[bobclayton]

Sorry, to clarify. At the time of the mortgage a decreasing term life assurance will be set up. If the mortgage term is 25 years, this will also be 25 years. It decreases in line with the mortgage within certain parameters, essentially covering the cost of paying it off in the event of death.
If you finish your mortgage early, it will continue on the original term.

[dr_gn]

Thanks guys - I had a chat with someone from Lifesearch yesterday, who did a quick finance/health evaluation, and has given me a few options to consider.

A couple of the quotes are for Family Income Benefit AND Level Term Assurance AND Income Protection. Wondering If I (actually we, since they cover my wife and I) really need all that cover.

The mortgage wasn't massive to begin with, and there wasn't that much left to pay off anyway after paying lump sums and over-paying for several years. The pay-out would now have been insignificant if I'd have kept it going.