Any benefit to Life Insurance when I have Death in Service Benefit?

S

shades25

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I'm looking over my insurance payments every month and I get the feeling that I'm over insured in one way or another! I have:

- Life Insurance policy - taken out at mortgage start - appears to run to the term of the mortgage (when I turn 65)
- Mortgage Protection - decreasing in line with the remaining payable on the mortgage
- Income Protection - payment on loss of job/serious illness etc (I have read that these types of insurance are difficult to get paid out on but it has been a godsend to my brother and his partner through difficult times)

I also have Death in Service Benefit from my employer (4x salary). To me this seems to make the Life policy superfluous - but are there benefits I'm not taking account of?
 
You certainly don't need life assurance for life of the mortgage and mortgage protection . I'd be inclined to cancel the mortgage protection. The life assurance will clear the balance of mortgage and balance will pass to your estate . Just be sure that you have enough of a sum insured to give some decent lump sum to spouse.

I'd keep income protection.

Employer death in service is only there whilst you are employed. If you left, were made redundant or if employer went belly up, that benefit is gone. I'd be inclined to treat that as a 'free perk' and not to rely on it.
 
shades25 said:
- Life Insurance policy - taken out at mortgage start - appears to run to the term of the mortgage (when I turn 65)
- Mortgage Protection - decreasing in line with the remaining payable on the mortgage
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You appear to have two mortgage protection policies?
 
No reason why you can't have two, one was obviously meant to pay off the mortgage and the other to pay out a lump sum to dependents if he died within that term also. The death in service does do the same thing as the life policy but only catch is obviously it only works while you are in that job.

I have a very nice 4 times death in service benefit too that unfortunately ceased on redundancy, union tried to get option to convert to some time of life policy with same company for those of us that were a little older! Didn't work so only option was taking out brand new policy where needed and obviously age and history was against me at that stage.

If there is still a need to have a lump sum such as dependent children and it's not costing too much I'd be inclined to keep it and as mentioned treat the death in service one as a bonus.
 
Shades gave us zero figures and zero on who would get paid if he died. So it’s impossible to figure out if he is over insured.

But one thing for sure, don’t cancel policies to make small savings now as to get back in when older and weathered is costly. In our case we were lucky that KBC (not Ireland) allowed the life insurance on my life as no way would my husband have passed the medical tests.
 
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Based on original post the Mortgage Protection is to pay out on remaining balance of mortgage on death so a basic decreasing mortgage protection policy. OP also has what he calls income protection which sounds more like Payment Protection of some sort as it pays out on redundancy too.
 
Monbretia said:
Based on original post the Mortgage Protection is to pay out on remaining balance of mortgage on death so a basic decreasing mortgage protection policy. OP also has what he calls income protection which sounds more like Payment Protection of some sort as it pays out on redundancy too.
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Thanks for all of the replies. Yes the above is correct. I also agree with the idea of treating Death in Service as a bonus.

I suppose with the Life Assurance I was thinking that as the policy is only up to 65, that I would then need to begin a new policy at that point and that the medical requirements would kick in then. But as has been said, theres no guarantee I will have the Death in Service benefit for all of the time up to 65, so the Life plan has merit.
 
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