Life Life Assurance question

Eldrew

Registered User
Messages
8
Just looking for some opinions please:

I am fortunate to have cleared my mortgage and have 200K+ in savings (5yr state savings scheme & on deposit for 1yr and some shares). My salary covers living expenses and I am managing to save approx 500 per month. My question is - would it be a good idea to take out a life assurance policy on me and the wife? I am married with kids but never continued life assurance once mortgage was cleared

Cheers
 
Congratulations on getting yourself into a good position.

When considering life insurance, the best thing to do is to sit down and work out what financial position you'd be in if either you or your wife died. The answer will be different for everyone, but here's a few pointers to get you thinking along the right lines: -

  • If you died, your salary would stop. How much are your current household expenses? How long would your wife be able to pay your household expenses using the €200,000 savings?
  • Does your wife look after your kids in the home? If she died, how much would it cost you for childcare?
  • Is there a pension scheme in your place of work? What will it pay in the event of your death?
  • Don't forget the State Widow(er)'s Pension of €193.50 a week in your calculations.
  • If you are planning to send your kids to college, allow around €10,000 per year per child if they have to live away from home.
 
Do you know if you have death in service benefits?

A lot of companies offer this ie if you die while working with the company then you may be entitled to a payout. Typically linked to your salary eg *2/*3 times your annual salary.

If you do obviously, you can take this into account.
 
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