Do i need life/critical illness insurance?

andrew1974_2

Hi
Hope someone can offer me some advice.
My wife sadly passed away 3 months ago and I found out this week that our life insurance will pay off the remaining mortgage but do i now need to carry on with my life and critical illness insurance?

The insurance company have altered my payment to £24 per month but i cant see any reason for me to carry on. I have probably got this all wrong but there has been so so much to sort out my mind is in a complete daze.

Thanks for any help

lisyloo

Sorry to hear of your loss.

Do you have any dependents to worry about?
Presumably your beneficiaries will already get your house.
Sounds to me you don't need life insurance.

But illness, well........
How would you manage for income if you were long term sick?
What if you needed to pay for personal care and didn't want to sell the house?
What if you wanted to modify the house after an accident e.g. stair lift etc.

You need to ask yourself these questions and consider the consequences
e.g. how well would you manage on benefits?
Do you have parents who would/could look after you? or are they dead or elderly?

What benefits would you get from your employment?
e.g. Do you have long term sickness cover?

Critical illness is not necessarily the best product depending on your needs.
If (for example) you wanted an income rather than a lump sum then PHI might be better.

Personally for the sake of £24, I'd give yourself a bit more time, before worrying about this. It's good that you are reviewing your finances and trying to sort things out, but it won't hurt if this waits a couple of months if you need more time.

andrew1974_2

thanks for your excellent advice, i guess its probably best if i give it a bit more time but you have given me lots to think about - thanks again

lisyloo

Don't forget to check what your employer offers.
Some give death in service benefits e.g. 3 or 4 times salary.
If you are lucky you might find they offer PHI which provides an income until retirement if you are long term sick i.e.permanent sick pay.
Some jobs (or comapny pension schemes) include this so it's definitely worth spending 20 minutes finding out either from your handbook or HR department.

Janscott

My daughter (36) cut three toes off with a motor mower and if it was not for sickness insurance would be in deep financial trouble with her loans.