Am I over-insured? Employer coverage sufficient?
Hello! Looking for some advice as to whether I'm spending too much on insurance.
I have had these two policies for a few years:
Life Insurance: £250k cover
Life Insurance with Critical Illness: £25k cover
Both of the above cost me a combined £12 per month and were on 10 years terms due to End in 2028.
Due to the relatively low monthly cost, I'm happy to just leave these as is.
A few months ago I moved home and took on a larger mortgage. At the time I was a contractor (as opposed to permanent employment) and was advised the take out a 'Decreasing Life Insurance with Critical Illness Cover' policy which matches the mortgage (approx £500k right now and this will decrease with the life of the mortgage to ensure if something happens to me, my partner will be able to pay it off (I am the higher earner).
The above policy current costs just over £200 per month.
Since then, I am now in permanent employment and receive the following benefits:
Life Insurance at 5x Salary - this would be enough to pay off the mortgage.
Long Term Sickness Benefit - this states it will payout 70% of salary if I am unable to work as a result of long term sickness or injury, though I am struggling to find the small print *have asked HR).
My main question... do you think it is worth keeping the rather expensive Decreasing term cover at £200 per month if I have the workplace benefits stated above?
I am thinking perhaps I don't need the Life Insurance element as am covered that offered by by employer, but also am unsure if the Long Term Sickness Benefit would be a placement for the Critical Illness element.
Any opinions welcome... I realise no responses constitute financial advice.
Thank You
EDIT: Am 44 years old.