Life insurance - essential?!

emma_lewis84

Hi,

Me and boyf have just bought a house - do we have to get life insurance? Our IFI has advised us to, but it's £50 pcm and at the moment money is really tight - and I'd like to think we're not going to die anytime soon, so the optimist in me thinks it's a waste of money at the moment? We're 23 and 26 and in good health...

thanks,
Emma.

pinkkaz

Don't get Life Insurance through your financial advisor as it will cost a fortune. Go to Martin's page on Life Assurance and you'll be able to get it much cheaper following his advice.

(Then you can do what we did and get your advisor to beat your new figures, which ours has done! Hurrah!)

When our flat purchase goes through in a couple of weeks (I hope!) I'm definitely getting life insurance for me and my boyfriend. I'd hate to think of him coping with paying the mortgage if I had an accident.

lisyloo

Hi pinkkaz,

You don't HAVE to get life insurance, it's up to you, but you should bear in mind that if one of you dies then that probably means selling the house (with the costs assocaited).
If you have only just bought then you could find yourself out of pocket because the house won't have risen enough to cover the various fees e.g. estate agents.

Even though your health is not an issue, any of us could die in an accident.
I suggest you do the following.

1) Both check at work whether you have any "death in service" benefits. This doesn't mean you have to die at your desk, only whilst you are employed.

2) If not then consider the consequence and whether you are willing to take them. You might decide to take a risk, which is fine but you should be aware of the possible consequences.

3) Consider starting an "emergency fund" with savings when you can. Not just for death, but any unexpected expenses.

4) If you do decide to take insurance then read Martins article as you can liekly get it much cheaper

5) When you have time also consider what happens if either of you get sick (short or long term) or are made redundant. Again you may decide to take a risk or get insurance. As in 1), check what your employer provides.

dunstonh

Don't get Life Insurance through your financial advisor as it will cost a fortune. Go to Martin's page on Life Assurance and you'll be able to get it much cheaper following his advice.

Yes, you may save 50p a month but have to do everything yourself, including in the event of a claim.

Tied agents tend to be very expensive on life assurance IFAs are not. Indeed, all the firms Martin lists are IFAs or whole of market.

and I'd like to think we're not going to die anytime soon

1 in 5 men will die before retirement. That means 4 in 5 wont but 20% will and can you afford those odds.

I am guessing your premium includes life cover and critical illness and possibly income protection as at your age you would expect pure life cover to be under £10pm.