Life Life insurance - whole of life policy

[partnership]

Hi
We are 45 and 47 and I am currently trying to rejig our finances. I am in public sector job and hubby is semi state. Loads of borrowing (not payment protected) hence the rejig. We have a whole of life policy with Canada Life - cover of about 300,000 and 250000 it is a dual policy. We pay about 135 per month and this increases each year. I have no other life insurance. Should I look for alternative life cover and what type of policy and how much should I be paying. We have one son age 18. I think we should have life insurance so if anything happens either one we can pay of debts with it. Any advice appreciated.

 

[tenchi-fan]

You should have life cover with specified illness cover at least to cover your debts and maybe a couple of year's salary too given that your son is only 18 and probably going to college.

Are your life cover premiums reviewable?.. I assume they aren't guaranteed and will go up over time. A term policy e.g. for 10 years can work out a lot cheaper and will not provide cover for longer than you need it. Joint life is also cheaper than dual. If it is to cover a loan, why not get decreasing term cover?

Your existing policy may have a value if you cancel it which would provide a good start to putting some money away for any eventualities.

If you are semi-state you probably already have sick pay, PHI and death in service benefit so try not to have too much life cover as it would just be an unnecessary expense.

 

[Sumatra]

I wouldn't recommend you take the advice of Techni-fan. He/She cannot possibly make such a recommendation based on the limited information he / she has received in your posting.