Hi,
We are trading up and we've just started looking at mortgage insurance and life insurance.
Details:
Me 34 yo salary 100k and likely to increase to 200k over next 5 years.
Wife 33 yo salary 58k.
Children: One on the way!
New mortgage circa 650k for 35years.
I was very happy with just mortgage protection on our current house as we had no dependents however this is about to change with a child on the way.
Is there any advantage to buying life insurance alone say for 850k (mortgage 650k plus 200k to surviving spouse) over buying separate products (mortgage protection of 650k and then life insurance for 200k).
One disadvantage I can see from buying life insurance alone is that after a few decades I think we will be significantly overinsured eg if we have a mortgage of just 100k left and life insurance for 850k.
I find the whole area a bit of a minefield so any pointers much appreciated. Also any advice on duration of life insurance would be much appreciated but I assume the ideal is just to match the mortgage duration.
I will look at income protection too but will likely buy this separately once we're settled in the new house.
We are trading up and we've just started looking at mortgage insurance and life insurance.
Details:
Me 34 yo salary 100k and likely to increase to 200k over next 5 years.
Wife 33 yo salary 58k.
Children: One on the way!
New mortgage circa 650k for 35years.
I was very happy with just mortgage protection on our current house as we had no dependents however this is about to change with a child on the way.
Is there any advantage to buying life insurance alone say for 850k (mortgage 650k plus 200k to surviving spouse) over buying separate products (mortgage protection of 650k and then life insurance for 200k).
One disadvantage I can see from buying life insurance alone is that after a few decades I think we will be significantly overinsured eg if we have a mortgage of just 100k left and life insurance for 850k.
I find the whole area a bit of a minefield so any pointers much appreciated. Also any advice on duration of life insurance would be much appreciated but I assume the ideal is just to match the mortgage duration.
I will look at income protection too but will likely buy this separately once we're settled in the new house.