First Time Buyer - Life Insurance

[l354uge]

In the process of buying my first home with my partner of 5 years (not married), trying to understand what direction I should be going before I start calling brokers.

We both earn a similar-ish amount basic, with our salaries set to grow at similar rates. I get a 10% bonus so I do earn more.
No kids and no plans for them.
Mortgage is 4.8 times our current annual take home salary. (£248,000)
I currently have group income protection and life assurance (4x annual salary) at work.
She gets life insurance through her work too.

What amount of cover should I be looking for? With current interest rates she could afford the mortgage and bills without me on her salary, so is a small amount to top up my work life assurance a good idea, none at all or should I ignore that and get the full mortgage amount + extra?

[anonymous-user]

Only buy any form of insurance if you need it. Do you think you need more life insurance? If so, why?

Critical illness cover on the other hand may be worth considering. Regrettably "damaged and unable to work" can be trickier than "dead".

[Sarnie]

l354uge said:

In the process of buying my first home with my partner of 5 years (not married), trying to understand what direction I should be going before I start calling brokers.

We both earn a similar-ish amount basic, with our salaries set to grow at similar rates. I get a 10% bonus so I do earn more.
No kids and no plans for them.
Mortgage is 4.8 times our current annual take home salary. (£248,000)
I currently have group income protection and life assurance (4x annual salary) at work.
She gets life insurance through her work too.

What amount of cover should I be looking for? With current interest rates she could afford the mortgage and bills without me on her salary, so is a small amount to top up my work life assurance a good idea, none at all or should I ignore that and get the full mortgage amount + extra?

Cover yourself for the full amount.......treat employer benefits as perks of employment, they aren't adequate product for financially protecting each other.........which you lose as soon as you change employer.

[l354uge]

Sarnie said:

Cover yourself for the full amount.......treat employer benefits as perks of employment, they aren't adequate product for financially protecting each other.........which you lose as soon as you change employer.

Thanks Sarnie, should we go for separate policies or a joint one? I understand the difference in cost can be negligible

[roadsmash]

As it is a joint mortgage, it seems a no-brainer to go for joint life insurance?

If the cost difference is negligible what are your concerns with either or?

[Sarnie]

l354uge said:

Thanks Sarnie, should we go for separate policies or a joint one? I understand the difference in cost can be negligible

A policy each gets you the full sum assured each.......so double the cover of a single joint policy.......but only costs a bit more......

[roadsmash]

Sarnie said:

l354uge said:

Thanks Sarnie, should we go for separate policies or a joint one? I understand the difference in cost can be negligible

A policy each gets you the full sum assured each.......so double the cover of a single joint policy.......but only costs a bit more......

Never thought of this!

[Sarnie]

roadsmash said:

Never thought of this!

Also, if one of you passes away, the other person still has their own cover........a joint policy pays out once and ceases, leaving the surviving spouse with no cover.

Or if you and your partner split up........you would cancel a joint policy and when looking for a new policy you'd be older so premiums more expensive or you may have had medical issues that now make it difficult or very expensive to secure new cover........

[dalenorth]

We’re specialists in this area, so happy to help if you’d like any advice? We’ve helped many PH members over the years.

[Insurancejon]

Speak to dale and get advice. He sorted me and a lot of my clients out;)

[anonymous-user]

The question remains - does OP actually need Life Insurance, or more of it?

But who cares, if you're selling something all you need is someone to buy it.....

[dalenorth]

Maybe the op doesn’t need more cover, but its only by taking good advice will this be determined.

[l354uge]

dalenorth said:

We’re specialists in this area, so happy to help if you’d like any advice? We’ve helped many PH members over the years.

Thanks Dale, I'll send you a pm once we've exchanged.

[dalenorth]

Great, happy to help