Life Insurance - Should I Cancel?

Swans1912

Hi All,

Given my monthly direct debits a refresh before the new year and on my 'hit list' is my monthly payment to Legal & General of £7 each month.

It is for decreasing cover for our mortgage which is currently at around £96K. If one of us pops it the insurance pays out the whole outstanding amount.

I know that one of my benefits with work is they pay out £68K for my death but not sure about my OH who is going to find out.

We can cover the household bids with a single income (either my or the OHs) so I'm wondering if it is worth it or not?!

ACG

£7 is a cheap as you will probably get.... you might be able to save a pound or something so its not really worth trying to find it cheaper for the sake of £12 a year.

How old are you, are you planning on having kids, whilst you can cove your houshold bills would you be comfortable and be able to still lead a decent quality of life etc. Will you need life cover in the future for anything that you can think of? If so anything could happen between now and then meaning in the future you might not be able to get cover or it could be a lot more expensive.

Swans1912

ACG wrote: »

£7 is a cheap as you will probably get.... you might be able to save a pound or something so its not really worth trying to find it cheaper for the sake of £12 a year.

How old are you, are you planning on having kids, whilst you can cove your houshold bills would you be comfortable and be able to still lead a decent quality of life etc. Will you need life cover in the future for anything that you can think of? If so anything could happen between now and then meaning in the future you might not be able to get cover or it could be a lot more expensive.

Its £7 per month so £84 a year.

We are 24 and 25. No plans to have children but i'm sure many people our age say that. Either of us on our own could maintain everything 'as is' and have £200 to £300 left over.

Very true about the cover being more expensive again in the future!

dunstonh

I know that one of my benefits with work is they pay out £68K for my death but not sure about my OH who is going to find out.

death in service is mainly there to replace lost pension benefits.

So, if you cancel the life assurance you will not only leave your OH with less income coming but also a lower pension and having to find the money to pay the mortgage each month. Seems like false economy to cancel just to save £7pm

ACG

If you have £200-300 a month left over - is £7 a month going to make that much difference?
At 27 i still dont see me having kids in the foreseable future but i know i will do as my gf wants them and i suppose deep down i know i do eventually. If you were on the breadline id be saying there are more important things but your not, you seem quite comfortable and so it seems crazy that if one of you were to pass away your lifestyle could change drastically. Id actually be debating Income Protection as you can afford it and going back to the lifestyle, would you be in the same position should one of you be unable to work?