First of all I would question the need for a whole of life policy, particularily if the premium on it is reviewable. Its a lot cheaper to take out a policy for a specific term if you know how long you require cover for.
Also bear in mind that the requirement for life assurance cover decreases as you get older, for example your mortgage could be paid off and your children grown up.
You dont mention whether or not you wife works or plans to return to work once your child is older, this is also a consideration to take into account.
Generally a figure of €50,000 should be enough cover per child to cover preschool childcare for a couple of years and college fees. These are the main things that people want to cover for their children in my experience.
You could in my opinion make an immediate saving on the hospital cash part of the plan. Not many things will require you to stay in hospital for more than 3 that are trivial in nature. Anything serious that requires a stay longer than 3 days will most likely be covered under the specified illness part of the policy.
There is no magic number for the amount of times salary you should have cover of. Everyone has different circumstances and mainly it comes down to budget, ie how much you want to spend.
If your wife was prepared to go back to work in the unfortunate event of you death and you didnt have more than 2 children then I would say that €100,000 life cover is enough as the mortgage would be paid off and you have sufficient savings and benefit for your childrens upbringing and education.
Hope this gives you some food for thought.
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