Decreasing Term Assurance

Audz48

I am a divorced woman age 49 and live on my own. My son has now flown the nest.

I have read on here that debt dies with you. Is there still any need for me to have a costly decreasing term assurance policy? This policy has integrated critical illness covering total permanent disability and costs me £34.69 a month

Steady_Eddie_3

I would think that your main priority now is your income. You have a mortgage with no dependents so as you have rightly said you do not need Life insurance. It might be worth you considering income protection or critical illness cover. Personally I think income protection would be better for you. You have to think how you would cope financially if you were unable to work due to an accident or sickness. I would use the money you are spending now on a PHI policy. Speak to an IFA or go direct to someone like LV or maybe Bright Grey.

Cautious_Investor_3

Hi

No, your debt does not die with you.

Your debt would have to be repaid by a sale of assets from your estate.

Whether you wish to continue with the life cover is really down to what you want to leave to your beneficiries on your death.

As for the critical illness cover this would help you (in the event of a claim), not your beneficaries, as of course you would still be alive!

The Cautious Investor

lisyloo

I have read on here that debt dies with you.

Only if you don't have any assets to pay them.

So for example if you have a house that would form part of your estate then the house would be sold to cover the debts.
Anything remaining would pass to your beneficiaries, either in line with your stated wishes in a will or following the intestacy rules if you don't have one.

So if the estate is in deficit it's written off but there is no inheritance.
If the estate has money, then beneficiaries get what's left over after the debts are paid.

Is there still any need for me to have a costly decreasing term assurance policy?

Do you have debts you wished paid off so that your beneficiares can inherit your assets? or are you satisfied for them to have whatever is left over or nothing at all?
If you aren't bothered about your (adult) son getting anything then there is no need for you to have it.

This policy has integrated critical illness covering total permanent disability and costs me £34.69 a month

Do you need income or a lump sum if you are sick? or can you manage on benefits? or whatever other income you have?

Most people have a need to have some cover if they are sick.
Exceptions might be people on benefits or pension or the very wealthy, but those relying on an income, generally want some kind of cover as they often don't want to face a life on benefits.
Critical illness pays a lump sum not an income, so you might have to look at whether that is the most suitable product for your needs.