Critical Illness and life cover

[l35kee]

WIB is right there. I'm pretty much in the same situation. 2 kids, ages 1 and 3. Wife doesn't work, but is studying open university so she can go back

I recently sorted all this out and got £500k life cover. I also got a critical illness/life policy for £100k, so I wouldn't have to worry about work if I was diagnosed with something that's covered, or my wife would have the extra £100k otherwise. I pay a little over £50 a month in total.

Thanks, to be honest I was getting a lost with all the options... This helps provide some kind of context!

[WordIsBond]

Thank you so much I really appreciate that response. I'm just about 2 months into my first contract after being a permie for 10+ years and had never given this much thought before. You've really put it into perspective for me!

Good! Best of luck.

[PerfectStorm]

Good advice

Now isn't this better than telling people to use google or speak to their insurer?

[l35kee]

WIB is right there. I'm pretty much in the same situation. 2 kids, ages 1 and 3. Wife doesn't work, but is studying open university so she can go back

I recently sorted all this out and got £500k life cover. I also got a critical illness/life policy for £100k, so I wouldn't have to worry about work if I was diagnosed with something that's covered, or my wife would have the extra £100k otherwise. I pay a little over £50 a month in total.

Who did you get it with if you don't mind me asking? Just sorting a mortgage and the broker is pushing LI/CI at me, want to ensure I'm getting best deal I can..

[FrontEnder]

Who did you get it with if you don't mind me asking? Just sorting a mortgage and the broker is pushing LI/CI at me, want to ensure I'm getting best deal I can..

I got it through a broker. Both policies are with vitality.

[BillHicksRIP]

I got it through a broker. Both policies are with vitality.

Are both of these being paid by the company or personally? Very interested myself. Thanks.

[WordIsBond]

If you can get the same rate in a relevant life policy, definitely do the life cover through the company, that is much more tax efficient.

If you want to take the risk of doing the critical illness as a relevant life policy, the same applies. But there is indeed a risk that this will end up being ruled invalid at some point, critical illness within a RLP is an innovation that has not caught on widely and is controversial.

If you do the critical illness outside the RLP, there may be a small tax efficiency in doing it through the company, as a benefit in kind. The maths for this depends (in part) on whether or not you use the employment allowance and pay yourself a salary up to the personal allowance, or only use a salary of £8K.

I run both, and private medical insurance, through the company. Saves on corporation tax, incurs employer NI for benefit in kind on the non-RLP insurance.

[Antman]

I remember a thread like this a few years ago and the gist for calculating the premium was to make sure that the figure would keep your dependants comfortable but not go putting ideas into their heads!

[kaiser78]

WIB is right there. I'm pretty much in the same situation. 2 kids, ages 1 and 3. Wife doesn't work, but is studying open university so she can go back

I recently sorted all this out and got £500k life cover. I also got a critical illness/life policy for £100k, so I wouldn't have to worry about work if I was diagnosed with something that's covered, or my wife would have the extra £100k otherwise. I pay a little over £50 a month in total.

My joint CI and Life Cover policy costs me £150 per month for £200k cover over 25 years, taking me up to mid 60s.

My kids are a bit older and are just starting secondary school, and so I am also planning to take out some relevant life cover in addition - £200k for 20 years is around £50 per month for me and the wife each, which through the company will come to ~£40 per month.

I may then reduce my CI/Life Cover to around £100-50k depending on the numbers, which my IFA is to provide.

[Spoiler]

I need to look at this again. I have life insurance policy in place, but am looking at Income Protection in case something happens that doesn't kill me, but I'm incapacitated.

I got a quote earlier in the year, paying out £4,000 per month, which cost £120 per month.

As has been mentioned, I was planning to go for something like this to start with, and then review it in a few years after building up additional savings.