Life insurance in Retirement

chapmag

Hi, I hope to retire in the next 18 months.
My mortgage will be paid off, I will have a good pension (thanks to my Final Salary Pension Scheme) and an amount stashed away for a rainy day.
My wife will also receive half my pension should I die first.
My question is... with the mortgage paid off should I continue to pay Life Insurance Premiums on the policy we took out for the mortgage.
It's £35 per month for £70k of Life Insurance but to me it's illogical to keep paying it if the mortgage has been paid off.
I guess I am looking for re-assurance that I am not cheating the "little lady" if I do cancel the policy.
Thanks in anticipation.

dunstonh

Do you need the life cover?

If yes, then keep it, if no, then dont.

chapmag

Thanks Dunstonh,
My point was it won't be paid out until I'm dead so I don't need it!
Just feeling guilty that I'm potentially taking £70k way from my wife upon my death.
Or perhaps I should just reconcile myself with the fact that we would have an extra £420 (12 months at £35/month) to spend together in our retirement years!

martini99_2

chapmag wrote:

Thanks Dunstonh,
My point was it won't be paid out until I'm dead so I don't need it!
Just feeling guilty that I'm potentially taking £70k way from my wife upon my death.
Or perhaps I should just reconcile myself with the fact that we would have an extra £420 (12 months at £35/month) to spend together in our retirement years!

Take the money - you're a long time dead.

EdInvestor

Have you considered discussing this with your wife?

chapmag

Thanks EdInvestor,

I have of course discussed this with my wife, but she says "It's your decision".. which puts me right back where I started!!!!

Ian_W

And whatever decision you make will be ...........
WRONG!!
:doh:

EdInvestor

I have of course discussed this with my wife, but she says "It's your decision".. which puts me right back where I started!!!!

In that case I am sure you know what you should do.

dunstonh

In that case I am sure you know what you should do.

As a woman, you understand that Ed. As a man, I am still none the wiser to what would be wanted.

If you cancel it and die, your wife will be angry with you (well, you know what i mean). If you dont cancel it and live, she will also be angry with you for wasting money.

chapmag

Thanks Dunstonh, Couldn't have put it better myself... If I could have that's excatly what I would have written in my original post!!!!!

jem16

dunstonh wrote:

As a woman, you understand that Ed. As a man, I am still none the wiser to what would be wanted.

If you cancel it and die, your wife will be angry with you (well, you know what i mean). If you dont cancel it and live, she will also be angry with you for wasting money.

As a mere woman, how would I be expected to make such logical and complicated financial decisions?;)

If I could do though, I would cancel it as its purpose was to cover the mortgage.