divorce life insurance

diane70

Hi Guys
I am divorced and have been paying the mortgage for two years come this September, ex name still on as I can't buy him out as I'm on tax credits, he has cancelled our life insurance (prob cause he doesn't want me to get any money if he dies) so what am I best doing as I have 2 kids?
Do I just get some life insurance so the kids have some money when I die? don't want to get it for mortgage as if I die he will get the house plus the money from insurance, I'm a little confused as I'm now not sure if I have to have it seeing I have a mortgage?
Hope someone can help me
Thanks Diane:)

stephenni1971

diane70 wrote: »

Hi Guys
I am divorced and have been paying the mortgage for two years come this September, ex name still on as I can't buy him out as I'm on tax credits, he has cancelled our life insurance (prob cause he doesn't want me to get any money if he dies) so what am I best doing as I have 2 kids?
Do I just get some life insurance so the kids have some money when I die? don't want to get it for mortgage as if I die he will get the house plus the money from insurance, I'm a little confused as I'm now not sure if I have to have it seeing I have a mortgage?
Hope someone can help me
Thanks Diane:)

Just because you have a mortgage doesn't mean you have to have life cover for it.

You do however have two kids so it makes sense to make sure that if anything happens to you they would be looked after financially.

If your ex pays CSA maintenance you can also take out a life insurance policy on him so that if he dies you would not suffer the loss of what he pays.

diane70

Hi there, thanks for your reply, im only getting £40 a week off him so won't bother with the life ins for him etc.
What kind of ins am I best getting? only owe 35K on house etc
critical illness, terminal? bit confused as which one would be best.
thanks again
Diane

stephenni1971

diane70 wrote: »

Hi there, thanks for your reply, im only getting £40 a week off him so won't bother with the life ins for him etc.
What kind of ins am I best getting? only owe 35K on house etc
critical illness, terminal? bit confused as which one would be best.
thanks again
Diane

Depends a lot on your budget - life cover is cheapest but you will never benefit - only your dependents if you die.

Critical illness is more expensive but you stand the chance of benefitting yourself if you have a covered condition.

You could consider enough life cover to pay the mortgage off plus extra for your kids. Some critical illness or income protection on top would be a bonus.

All life cover will include some form of terminal illness cover - its not something you can buy as a stand alone policy.

ACG

You can get life insurance for life of another - eg you pay the premiums and the benefit gets paid to you. Cheapest way is probably Family Income Benefit (life insurance pays out a monthly sum), but you can get term assurance.

Might be worth speaking to an advisor (mortgage or financial) they will be able to help you.

magpiecottage

Whatever you do, make sure any life cover is in trust and appoint an additional trustee so that it can pay out independently of your estate. You can set it up so that if necessary the beneficiaries can be changed after your death. You can even specify that a named person (for example an ex!) cannot receive any benefits.

Oh - and make a Will too.