Hi Fiona

If you have or are unlikely to have any dependents, then life insurance may not be the highest priority for you.

MPPI does not usually include critical illness cover (CIC) - that's a separate type of cover. critical illness is worth having as you're more likely to suffer from and survive a critical illness than suffer from and survive one. It;s not as cheap as life cover, but that's because of the likelihood of a claim! Sometimes it is better to get a CIC oplicy with life cover as it often doesn't cost any more than CIC itself

Income protection insurance (IPI) is usually worth considering as it can pay up to 65% of your gross income (less state benefits), has a deferred period so works in line with your employer's sick pay scheme, you can claim as many times as you like, the insurer cannot cancel the policy, and payment can continue up to a pre-set age such as your proposed retirement age.

If you can afford it, consider level cover, or better still, cover that increases in line with RPI. Increasing cover ensures that a payout has not been eroded by inflation - in real terms a life cover policy for £100,000 today would be worth £73,000 (assuming 3% inflation) in 10 years time. A payout on an IPI policy for £30K per year would only be worth £25K per year after 5 years.

There is little or no point in joint policies (apart from IHT mitigation reasons) or decreasing policies (unless you really cannot afford level or increasing).

I would suggest that you speak with a local IFA (unbiased.co.uk) who should be fully up to speed on all of these areas. Bear in mind that the IFA will offer you a choice of how he/she gets paid (financial advice is not free) - by fee or commission or a combination - if you opt for commission or the combination and you subsequently cancel the policy within 4 years, you will undoubtedly have to pay the IFA all or part of the commission that he originally received in lieu of fees from you.

Brian

I have payment protection for my mortgage that covers for critical illness, accident and unemployment. Do I also need something that pays off my mortgage on death? Do I need a policy that will provide an income if I become unable to work through ill-health or accident?

I am 30 years old and in good health.

Thanks