depends...

...on whether you are insuring for loss of earnings if you get ill or die before planned retirement age, or if you are insuring yourself for a pot for critical care in later life. Policies vary depending what your priorities are. A mixture of the two can be useful.

The former is like travel insurance, low premiums and high payout. Latter is like a pension, depends what size pot you want. I have a mix, former to provide for my family if I go early, latter for funds to pay for my critical care if needed when terminal. Latter can be cashed in any time if I decide I wanna just go out with a bang.

Find a good life planner. A good one won't talk numbers from the off, they will ask about your priorities in life and what kind of life you want to live in future, then calculate what you need to pay in to meet those expectations. You can then tailor that to pay less if necessary and pare back your expectations, or pay more if you can afford to and have more cover.

Posted By: Jester, Feb 22, 20:47:48