Hi, I agree you need to speak to an IFA. price comparisons sites are very good for searching for the cheapest policy but that is not alway the best plan suited to your needs. For example rather than setting up one plan for you both you can set up 2 sepearte plans and the price will increase by a very small sum but you would have double the cover. Also you can get polcies which are called Family Income Plans. The main benefit of these plans is that you can ask for an income to be paid out for a given period of time. The idea with this is your need is reducing over time (your child is getting older and less dependant) Therefore you have a large amount of cover on day one when your need is at it's greatest. One other point you need to take into account is setting up a trust. I have no idea if you have any IHT problems but I will assume you have not. The purpose of the Trust is to make sure in the event of your death the funds can reach your child asap rather than waiting to go through probate. Also set up a will. If you have any questions please feel free to ask.

Agree with the complete twaddle comment. The FSA wouldn't allow it for a start.

Also, as for the person that said if its to cover a mortgage you need DTA, not strictly true, it's clearly dependent on the mortgage that they take out, so if they take an interest only mortgage and then get a DTA on your advice, they'd be pretty screwed in the event of death.

As for this question I would always say if you have little to no idea it's always best to speak to an IFA as they take into account all of your personal circumstances, especially the fact that you have a very young child as well.

For instance if you were to take cover for the mortgage purely, there's no thought given to what age your daughter may be and what stage of life, for instance the survivor may need to come out of work to look after her etc, or university fees.

There's generally several connotations to think of before coming to a decision on figures needed to cover.

Hope this helps :)

"Although you can get some very cheap quotes for life cover, I would reccomend going with a reputable provider, such as Legal and General or Norwich Union as many companies will find an excuse not to pay out, for example if they discover a hereditary illness in your family which you were unaware of"

sorry, but the above comment from Wallis is complete twaddle

My advice would be to speak to an IFA.

If you are very new to all this and this sounds like you are, you need to take expert advice.

Not meaning to insult some of the replies on here - although they are correct, I would not agree with everything that was said. Speak to a fully qualified advisor - take it from a recommendation as these will normally be better than just picking someone out of the yellow pages or whereever!

Agree with the advice so far.Rough rule of thumb:

As a minimum ensure all debts can be repaid in the event of death or critical illness.If it is to cover your mortgage you need DTA ( decreasing term assurance) .

Really life assurance is to replace your income untill your child reaches 18 so again rough rule of thumb look at 10x annual salary.

Hi Wallis,

Thanks for the advice. We have decided on Legal & General as they have actually come up with a good price compared to others. Buildings & Content insurance and life insurance now sorted, just need pet insurance now!

Thanks alot

K :)

Hello there,

The basic cover that you can take out is life, which usually comes with terminal illness cover which means that it will pay out on first death if you are given less than a year to live. Although this tends to be cheaper, you need to think about how much income you would need if one of you were to die, not just based on the mortgage cost, but also the lost income etc. You may wish to think about death and critical illness, which will pay out if something happens which seriously affects your quality of life. A financial advisor will go through what you would need if one of you were to die, or what you would need to support your daughter if both of you were to pass. You should then review your cover every year in line with your change in circumstances.

Although you can get some very cheap quotes for life cover, I would reccomend going with a reputable provider, such as Legal and General or Norwich Union as many companies will find an excuse not to pay out, for example if they discover a hereditary illness in your family which you were unaware of. This is the last thing you need if you (heaven forbid) have to cope with the death of a partner.

Getting a quote direct from a provider is cheaper, but if you get one through a financial advisor they can go through a review with you and you can get the most suitable cover. I would approach another fa, you shouldnt have to wait for anyone!

Hope this helps

Good luck!!

Hi there,

Me and my partner (26 & 25) are in the process of buying a house and we have a 6month old daughter. We have never had life assurance cover before, but know that we do need it. The FA who has helped us get our mortgage is a nightmare and he said he would come back soon to help us. To be honest I don't want his help as I can't stand him and also we can find our own cover! As this is our first time of requiring this, can anyone give me advice on who we could use and what type of cover we should go for, as we really haven't a clue. Be very grateful for any advice, comments. Thanks

x K x