Good income now but high levels of mortgage debt

Thank you all for your additional comments. It certainly gives me additional food for thought.
Redone,
I have not paid off any negative equity. Just arrears that I had built up. Current negative equity I would estimate at 186k.

GNF_Ireland,
You assume correct. I work long hours and I would have on average 3 business trips per month. Travel is limited to Europe.

The OP definitely needs some sort of cover for his family should he unexpectedly pass away. At the moment his wife would be left with a pension & properties (limited cash).

However she could be left in a very dire mess until she is able to deal with getting hold/liquidating these resources.

EldridgeCleaver said:

GNF_Ireland,
You assume correct. I work long hours and I would have on average 3 business trips per month. Travel is limited to Europe.

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I would also have assumed with your kind of job that there would be top of the range benefits included as part of your package.

Hi Bronte

Yes, I should have mentioned that. If I have a serious illness or am incapacitated while in service I would receive a lump sum of €65,000. If I died while in service my dependents would receive a lump sum of €125,000.

No pension payout or income of some sort for your dependants other than the lump sum?

There is a very cheap insurance for properties called Term insurance, at your age the cost would be negligible. But it would mean the investment was paid off and you have for your dependants a revenue stream, on low tax as your wife is not earning. Your home would be paid back so no mortgage. But you need to see how much else she would need.

Others have recommended other products, but it is my understanding that these are costly and complicated.

Lucky you only Europe, my OH had to go all over, but mostly Europe. As he got older and wiser he refused to get up in the middle of the night or ruin our weekends !

Hi Bronte,

No ongoing pension payment. Just the lump sum. Thanks for the advice on the term insurance. I will look into it. On the travelling I am lucky as I deal mainly with European public sector bodies and they prefer to meet on Tuesdays, Wednesdays and Thursdays so our weekends are usually our own. I did the long haul stuff in the past when I was young and single. I enjoyed it but it takes its toll and the novelty of travelling wears off fast.

Best regards.

Hi again EldridgeCleaver,
Based on what you have provided in terms of Death in Service benefit of just €125,000 with no pension benefits for the surviving partner, I would suspect that you very under insured. In the event of your death the family will lose that income and only have the €125k lump sum and the widows pension of €193 per week. I accept the mortgage on the family home will be cleared. Is this enough income to support your family's current lifestyle? just fyi a 20 year term policy for cover of €500k on your life costs just €60 euro per month (assuming no medical issues and non smoker) . If we look at dual life cover for both you and your partner for €500k cover for 20 years the total cost is around €90 per month.
You say you have no income protection if you arent able to work. To get a replacement income of €50k per annum till age 60 with a deferred period of 26 weeks will cost approx €105 per month.
These are just indicative amounts of cover. I suggest you sit down and try to work out what level of life and income protection you would need to provide a reasonable standard of living for your self and your family. I know this whole topic isnt much fun, but could be very important. all the best Vincent

Thank you for the advice North Star. I am looking at term insurance options now and have contacted a couple of companies for quotes.