Life Assurance Question

NZ039926

Hi all,
I'm going through my bills trying to reduce them.
I'm paying £12 life assurance a month with Legal & General.I'm single and my son is only 3 and lives with his mother do I need it?
Thanks in advance for your advice.

dunstonh

If you dont provide any money for your son's upkeep and have no other financial dependents, then no you dont need it.

NZ039926

Thanks for your quick reply.
I pay my ex a monthly fee for my son's maitenance. Does that change things?

dunstonh

If you die, you wont be able to pay it. Your ex will lose out as will your son. Its up to you if you feel that is important or not.

I would suggest if you decide to keep it that you get the policy written in trust to your son. This ensures that any money payable has to go to him or into trust for his benefit and cannot be used by anyone else.

mic200202

As with all life insurance its for someone elses benefit. You may want to help ensure your sons financial well being (or his mothers) should you die within the policy term - with an advisor,you should review the policy to make sure it can meet those needs and that it is still suitable.

Also, being single, you may need to place the proceeds of such a policy in trust for your son's benefit,otherwise in the event of a claim it may go into you estate and be distributed differently.

These are matters that can be easily dealt with by a good advisor. Unless your're absolutely desperate to cut costs,I would say this should be one of the most important policies you would be paying for.

turkolina

Another thing to note, you could cancel your policy now and in the future decide you need it again.. You will then be older (higher premium) and also have health problems (even higher premiums or refusals). If it isn't crippling you number one it would go to your son and if not its there in the future if you need it for other reasons.

Turksx