Life Cover now house is sold?

get_me_debt_free

Hi Guys,
Need some advice, My house sold and completed end of November. I have a HSBC life Cover with critical illness cover I am 33 years old I pay £36 a month, Now i have no mortgage does anyone have any advice on what to do.?
Should I carry on with Insurance or shall I cancel it and take out another?
I have 2 children oldest is 11.. I am Single parent and just want them to be ok if i drop dead. I havent got any savings no pention and im on benefits at the moment, I should also ad that i am filing for Bankrupsy soon.

I know this forum is the best you can get, Thanks guys
x

Travel-DanB

Is your life insurance on a decreasing term (benifit reducing inline with mortgage)? If so, I would definitely consider rebroking it and looking at a level term policy - I don't know your medical history (or how big your house was!) but £46 sounds pretty steep and if it is a decreasing term then it will be worth less and less as the years go by.

Writing any policy you have into trust for your children is probably a good idea at this point - meaning the sum assured could be paid straight to the kids (NOT into your estate - avoiding potential tax, creditors, etc.)

Good luck!

get_me_debt_free

its £36.. and it would pay off mortgage but i havent got one now.. think total was 130,000 if i die or get cancer or heart attack it pays out.
I have had it since 2002 and it runs for another 17 years then it stops. no cash in value

alibongo54

So if you die or get cancer, would you want your children to get a pay out or not? I think that answers it?? If it was to pay out £130,000 that would go into a trust no doubt utnil they were 18?- you would need to check if you need to assign the policy to them I would think..