Life Insurance when you have kids with Special Needs

[conanius]

Hi Folks,

So.

We've got two amazing children, but both have special needs - ASD for both, and our son also has Tourette's. Our son is 9, daughter is 6.

The world is a difficult place for them, will they have a 'normal life' ? who knows. I hope they do, but as ever, getting support you're legally entitled to is an uphill fight.

My wife is a full time carer for them - no possible chance of a job.

I'm insured up to the hilt in the event of death, being unable to work, critical illness..... however we had a penny drop moment yesterday when we realised my wife only has a relatively tiny amount of cover. Certainly, not enough for me to give up work, clear the mortgage, etc.

I'm in the process of sorting this right now, but I just wondered what the rest of you in similar situations have done.

Appreciate everyones situation is different, but still interested in your thoughts folks.

[alscar]

Appreciate in our case probably somewhat easier to worry about but similar circumstances ie I had the necessary Life etc cover but my wife had nothing extra.
We did have joint decreasing term assurance in place that would at least pay off the mortgage if anything happened to her.
When the first of our kids was born we also took out insurance for her and from memory we left that in place until all 3 kids reached 18 so I think the policy term was 25 years from the first child being born.
Thinking was simply what would it cost to have a housekeeper etc to look after them when I was working.
Bit simplistic I know but needed a figure to vaguely purchase a policy for and bear in mind that the younger the insured is at Inception the cheaper.
Thankfully all good and no claim needed.
Best of luck.

[Dogwatch]

alscar said:

We did have joint decreasing term assurance in place that would at least pay off the mortgage if anything happened to her.

That stuff is the Devil's spawn and, in my opinion, should never be sold. Always go for level term because although the mortgage decreases other costs, raising children etc, come in to replace it. If one of the parents dies the other will need every penny.

[alscar]

Dogwatch said:

That stuff is the Devil's spawn and, in my opinion, should never be sold. Always go for level term because although the mortgage decreases other costs, raising children etc, come in to replace it. If one of the parents dies the other will need every penny.

When we took out the mortgage kids were not on the horizon and the cost was much cheaper.
Then we added life cover separately when our plans were different which by then needed more £ cover anyway especially with a bigger mortgage.
If you just need to cover the mortgage then there is need but one size fits all then yes agree with level term being the answer.

[conanius]

Thanks for the replies.

Current thought is two policies:

1 - Decreasing Term to cover mortgage
2 - Level term with a block of critical illness

[alscar]

Might also be worth you talking to a company that specializes in getting you the necessary cover -I think I used Lifesearch who were very good as I recall - think they are still going.