We have a decreasing life insurance which is currently at £115000 and our mortage is at £111,000.
However, we now have 2 children and we are looking to get Level life insurace to protect them/our otherhalves if the worst happened.
Our monthly outgoing are around £1000 a month inc mortgage.
My calculations have been:
1,000 x 12 = £1200
X 21 (21 years – covered until the kids are 21)
This would pay the mortgage off (£111,000) and leave £141,000 to maintain the current lifestyle.
I was then going to add a sum to see them through life and university etc. So adding 48,000 would bring it up to 300,000
Looking at broker sites I can get this for around £15 a month and currently pay £10 a month for the decreasing one so i guess it would make sense to cancel that one and have it all in one.
I know Martin Lewis says 10 x salary and that would be £340,000 do i would be 40,000 out. My work would pay 4 x my salary but there it there is no guarentee i would stay there.
Am i making sense or making any fundemental errors?
Last edited by darrenwis; Today at 8:42 PM.