Life insurance in Retirement

EdInvestor

OK here's a thought for chapmag:

My wife will also receive half my pension should I die first.

Let us assume you have passed away and your widow is living alone on half the pension previously coming in.

Have her major costs reduced by 50%?

For instance

Gas and elec, especially heating
Council tax
Running the car
TV licence, Sky
Internet, telephone

Will her food bills actually reduce by half?

If you can genuinely say that your wife's standard of living will not change after you die wehn incoming funds are cut in half, and she will be able to keep up with inflation until she dies on the same basis as now, then cancel the policy.

But if you think she might need a bit extra to top up that 50% pension, then I would keep paying in.

chapmag

Hi EdInvestor,

With respect, I didn't say "incoming funds would be cut in half"

It is my pension that would be cut in half.

She would still have income from interest on our savings and she also has a "private income" of her own.

So without my expensive habits to fund I suspect she will be substantially better off!!!

I think this thread is leading me to the logical conclusion!!!!!

Thanks everyone!!!

ReportInvestor

Why not have a cosy night in, with your favourite takeaway and tipple, in front of "Double Indemnity" to try to guage her reactions .

Great thread BTW, especially Ian, Ed & dh :rotfl: