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Life Assurance ... do i need it?

dmo73av
dmo73av Posts: 41 Forumite
in Insurance & life assurance
Hi all,

I'm a 30 year old single male with no children.

I own a flat worth c.£120k.

The Life Assurance on it is £20 a month. Is this expensive?

However ... do I really need it given my circumstances?

Cheers in advance.

Dmo

Comments

  • dunstonh
    dunstonh Posts: 120,323 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    is anybody financially worse off in the event of your death?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dmo73av
    dmo73av Posts: 41 Forumite
    the only secured debt is the flat itself.

    if i died it would go to my neice ... but times are hard and she would inherit £1m when her folks pass ... so she don't really need it.
  • dmo73av
    dmo73av Posts: 41 Forumite
    is £20 expensive given my age and status etc
  • ArchieB_2
    ArchieB_2 Posts: 293 Forumite
    I'd say it's not expensive but I would spend it on PHI instead.
  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You haven't said how much your mortgage is, but personally I probably wouldn't bother with the life insurance.
    You niece can sell the flat an have any equity left over after the sale pus any other assets you have.
    If you have pensions then she would get those too.

    I don't really see any point in spending £20 per month on death.

    Someone else mentioned PHI?
    What would happen if you couldn't work long term?
    Sick pay generally end after 6 months and state benefits are subsitence level only.
  • dmo73av
    dmo73av Posts: 41 Forumite
    Thanks for the responses

    What is PHI?

    I am self employed so am very vulnerable when it comes to being sick.

    Mortgage is c.£115k out of the £120k
  • dunstonh
    dunstonh Posts: 120,323 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    permanent health insurance = phi.

    Its the "proper" income protection plan.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
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