Wills/Life Insurance/Critical Illness

pepe2008

After a recent spate of unexpected Deaths, illnesses etc in the circle of people I know, I wonder how many people ( In debt or otherwise ) feel that they are sufficiently protected?
Do you have Will for example. This is often overlooked and is vital particularly when you have children....who will look after them if both Parents 'go'?
Have you had a Marriage break up? and did you change the Will(s)?

Do you have 'Critical Illness Cover' so that at least the Morgage is repaid if you are diagnosed with something that will cause your premature death?

If you work in an area where accidents are common, are you covered for injury. I work as a truck driver and as such I make sure that i have a few Accidental Injury Policies, in total less than £10 per month, that would pay out in the event of loss of use of limb(s),eye(s) or hearing.
It may seem like unneccessry expense but is a small price to pay really.

Cover and Wills can be relatively cheap and are SO important.

Pepe

MustBeatThis

Hi,
This is somethign me and OH disagree on! I've always made sure I have lots of cover, he doesn't think it so necessary....
We have 2 kids, our mortgage is £150k. I've got a critical illness policy I took out at least 15 years ago, £100k. I've got life assurance with my endowment (from my first mortgage 15 years ago) £70k, and another £150k life assurance.
It sounds a lot, but if I died then oh would have to either reduce or give up work or employ a nanny etc or some help so I'd want to know the mortgage was paid off and money wouldn't be a worry. Also if something happens to both of us then the kids' guardians would have something to help extend or move house (that's been put in our wills)as they'd then have 5 kids to bring up.
OH has similar level of cover (he'd never had any before) - made him take it out when the kids were born. Found out recently he hadn't paid the premiums for 6 months (we have been going through real debt problems). He's reinstated it now!!
I've lost a few friends my age over the last couple of years, which makes me think life cover etc really is necessary and not an option. And Wills are absolutely essential!

pepe2008

Thanks MBT, a sensible view! Friend of mine has been given 'months' and has four kids!

Tixy

Intersting questions Pepe.

I think it does depend a lot of people's circumstances though. And you are right anyone with dependants really needs to feel certain they will be okay should the worst happen.
Incidentally I recently read that 2 out of every 3 people who die in the uk leave no will or no valid will.

However I have no dependants and live alone. I have no will, I'm fine that my estate will go to my parents equally. I have no life insurance (as I have equity in the house -about 50%ltv) but I have death in service cover free through work, that is 4x my salary and goes to my mother.

I do not have critical illness cover - this is the one area I felt unsure about but I have reasoned that if I become critically ill I would sell the house anyway, and because I have an existing illness which is the thing most likely to make me significantly ill but its not something that would be covered by CI insurance - in fact I was suprised to see how few illnesses are usually covered.

pepe2008

If any Life Cover is definite in its beneficiary and you are single then, true, the importance of a Will is lessened.
I make sure that Critical Illness is in place as several of the thins that would mean me losing my HGV Licence are also on the Critical list...two birds with one stone.
Good points Tixy.

dancingfairy

Personally I don't have anything that needs covering -unemployed, renting , not married, no kids etc - but if I got married or had kids or anything I would definitely get covered - someone dying is sooo stressfull and why leave your loved ones any more problems? I think it's essential to have cover for things you need.
df