Death in Service pension benefit

dillodaffs

I am wondering if myself and my partner should take out a life insurance policy. I am 35, he is 36. I currently have a pension through work with a death in service benefit - so if I die while working he will get two and a half times my salary I think (roughly 135K). I think he has the same death in service benefit to, but he is checking this out to confirm it is the case.

my question is, do we need life insurance when we have the death in service pension benefit? Or is this enough? I just worry that if something happened to either one of us, I would like for the remaining one to be financially able to cope and not have financial worries. are we covered enough as it stands?

Thanks

rameire

if your getting a mortgage you will need insurance.

death in benefit is not acceptable for mortgage purchases. I repeat NOT acceptable.

dillodaffs

Sorry, I should have stated that, we have a mortgage and already have mortgage protection, so that will be taken care of.

dillodaffs

anyone?

gogo

dillodaffs wrote: »

I am wondering if myself and my partner should take out a life insurance policy. I am 35, he is 36. I currently have a pension through work with a death in service benefit - so if I die while working he will get two and a half times my salary I think (roughly 135K). I think he has the same death in service benefit to, but he is checking this out to confirm it is the case.

my question is, do we need life insurance when we have the death in service pension benefit? Or is this enough? I just worry that if something happened to either one of us, I would like for the remaining one to be financially able to cope and not have financial worries. are we covered enough as it stands?

Thanks

Ok, you have mortgage protection, so mortgage covered, if mortgage is in joint names, ensure the mortgage protection is also in joint names.
If you didnt have the death in service benefit, I would definatly suggest having life assurance as well as having the mortgage protection, as life assurance would then provide you with lump sum, where as mortgage protection will cover the mortgage.
So personally, think that you are ok for life cover, but what I would definatley look into is some sort of income protection insurance (or permanent health insurance).This is not the same as private health insurance. If you are ill and need medical or hospital care, health insurance plans help pay for the cost of your treatment and hospital costs. It does not pay you any cash benefit or replace your income.
If you or your partner get sick are you covered?

You also need to work out your financial needs for the future, will you have any dependants, do you plan to upgrade your family home, things like that. When you work this out, you can then decide that, if something should happen, would 135k lump sum be sufficient to meet future needs (Your partner might not even get this amount). Do you have savings, investments that you can fall back on. If not then maybe life insurance wouldnt be a bad thing.

Personally feel that income protection is a priority for you now, and if you undertake a financial review of your circumstances you can then decide on life cover. Also you need to make sure your partner has death in service also, if not then I'd def advise taking out life cover on him.
hope this help.

gogo

Sorry, also, you say partner, are you married? When you filled out the death in service form, did you state your partner as the person you would like the funds to be paid too? look into this also.