Level term assurance: keep or ditch??

Crochet_Teapot

I took out a level term assurance (£69000 to be paid on death or critical illness over a 30 year period) about 13 years ago when I got a mortgage. I was 31 when I took out the policy and it will end when I'm 61. I'm now 43.

However I have now paid off my mortgage and have about 100k savings (I'm saving for a bigger house as I don't want another mortgage).

I pay about £22 a month for the policy. I have one child and my partner is a house husband. I am a company director and earn anything from 15k to 40k per annum depending on how the business is going.

I'm basically wondering whether I should keep paying the level term policy????

InsideInsurance

Saving £13,000 a year from a household income of £15-40k a year is fairly impressive for a family of 3!

What is the plan if you die tomorrow? Can your house husband generate enough income to maintain the lifestyle the three of you are accustom to? Do you want to provide £69k to provide 2-3 years of not worrying or longer with increased cost of childcare and getting up the career ladder again etc?

Only really you can answer the questions, some people want to ensure their spouses can live comfortably for the rest of their lives, some think they just need a few years as realistically they'll move on, get another partner etc and some (like a friend of mine) arent concerned about it.

Crochet_Teapot

My partner is 56 and has not worked since our child was born (9 years ago). I was the bread-winner. He would be very unlikely to be able to get a decent paying job now and has never been a career type.

By the way, I've only set up my business in the last 3 years since being made redundant from a pharmaceutical company. My salary before redundancy was 40k, hence I was able to pay off mortgage fairly easily, plus I am a complete tight wad!!!!

I guess I should keep paying it!