Salary: €32,500
Life & Critical Illness: €93,000 decreasing term policy (30 years)
Life Insurance: €100,000 level term policy (25 years remaining)
Mortgage A: €93,000 (30 years)
Mortgage B: €88,000 (rental property - 25 years)
Pension Value: €55,000
Death in Service: 2 * Salary
Group Income Protection: 70% of salary if I can't do 'my own' job
Dependants: None
Given the above profile, what do you feel that I am overinsured?
The level term life insurance was taken out 5 years ago to cover the rental property (which was originally my PPR). I took out level term rather than reducing because it wasn't much more expensive. I can't remember the exact figure but I think it's a €100 - €105 a year so doesn't break the bank.
The Life & Critical Illness costs a little under €14 per month. It's a new policy which I'm now second doubting.
The rest of the protection (and health insurance) is provided by work.
In theory, I could get rid of the L&CI policy and add an additional €14 a month net to my pension. However, my thoughts behind getting it were that, should I get critically ill, the 70% income protection wouldn't go very far with a mortgage to pay and possible home care. Add to this the possibility of void periods in the rental property and things could get really tough.
Obviously, there's the chance of getting an illness that isn't on "the list" but there's not much you can do about that.
The Life and Critical Illness policy has a guaranteed option that allows me to add 50% to the sum insured if I increase my mortgage, get married or have a child. This is done with no further medical questions. The premiums are also guaranteed and will not rise over the 30 years. Tempted and all as I am to cancel it, I think it's a good policy and probably worth keeping considering I have no problems with affordability.
Life & Critical Illness: €93,000 decreasing term policy (30 years)
Life Insurance: €100,000 level term policy (25 years remaining)
Mortgage A: €93,000 (30 years)
Mortgage B: €88,000 (rental property - 25 years)
Pension Value: €55,000
Death in Service: 2 * Salary
Group Income Protection: 70% of salary if I can't do 'my own' job
Dependants: None
Given the above profile, what do you feel that I am overinsured?
The level term life insurance was taken out 5 years ago to cover the rental property (which was originally my PPR). I took out level term rather than reducing because it wasn't much more expensive. I can't remember the exact figure but I think it's a €100 - €105 a year so doesn't break the bank.
The Life & Critical Illness costs a little under €14 per month. It's a new policy which I'm now second doubting.
The rest of the protection (and health insurance) is provided by work.
In theory, I could get rid of the L&CI policy and add an additional €14 a month net to my pension. However, my thoughts behind getting it were that, should I get critically ill, the 70% income protection wouldn't go very far with a mortgage to pay and possible home care. Add to this the possibility of void periods in the rental property and things could get really tough.
Obviously, there's the chance of getting an illness that isn't on "the list" but there's not much you can do about that.
The Life and Critical Illness policy has a guaranteed option that allows me to add 50% to the sum insured if I increase my mortgage, get married or have a child. This is done with no further medical questions. The premiums are also guaranteed and will not rise over the 30 years. Tempted and all as I am to cancel it, I think it's a good policy and probably worth keeping considering I have no problems with affordability.