My Dad cancelled his life insurance just before he passed away...

TadleyBaggie

takman wrote: »

I dont really see what the benefit of that type of policy is. Why would you not choose to have a lower premium and invest the rest of the money yourself so you have control over it. You then also don't need to cancel the policy if you wanted the cash payment.

We were ambushed when visiting our local Barclays in 1986 or so, since my wife had no form of life cover she was easily convinced it was needed. I did a rough calc on what return we got based on what we paid it, it was less than 2%.

Art_Deco

Sorry for your loss, perhaps he had an inkling of how ill he was and decided to spend the money on something he enjoyed while he could, knowing that after he had passed there would be some money left in the property, just a thought, it does worry me how many people i know who have no life insurance i can remember my mum making me take a policy out when i was 16 and had only been in my job a week!!.

chucknorris

Art_Deco wrote: »

it does worry me how many people i know who have no life insurance i can remember my mum making me take a policy out when i was 16 and had only been in my job a week!!.

Why on earth would you want life insurance when you are 16? I am 59 and I would never dream of having life insurance, obviously it would suit some people, but for me it would be a complete waste of money.

Art_Deco

chucknorris wrote: »

Why on earth would you want life insurance when you are 16? I am 59 and I would never dream of having life insurance, obviously it would suit some people, but for me it would be a complete waste of money.

What a strange comment, obviously to pay for my funeral costs if i died, people do die at any age you know ,unless you want the council to pick up the bill and put you in with a few other paupers, each to their own.

chucknorris

Art_Deco wrote: »

What a strange comment, obviously to pay for my funeral costs if i died, people do die at any age you know ,unless you want the council to pick up the bill and put you in with a few other paupers, each to their own.

With assets over £5m, I don't think that is very likely. So your non sarcastic answer was that you can't afford your own funeral, thanks. Other potential answers might have been that it was necessary to pay off a mortgage or to provide an income for family left behind.

csgohan4

Art_Deco wrote: »

What a strange comment, obviously to pay for my funeral costs if i died, people do die at any age you know ,unless you want the council to pick up the bill and put you in with a few other paupers, each to their own.

Please note the difference between whole life insurance which is far more expensive and life assurance which only covers you until X age and far cheaper.


Not everyone can afford the astronomical costs of whole life insurance which covers your death.


Now there are over 65 insurance which only cover the funeral costs and a little bit more, which maybe more cost effective.

ThinkingOutLoud_2

chucknorris wrote: »

With assets over £5m, I don't think that is very likely. So your non sarcastic answer was that you can't afford your own funeral, thanks. Other potential answers might have been that it was necessary to pay off a mortgage or to provide an income for family left behind.

This is a weird reply chucknorris? He was 16 just starting his first job - why would you assume he could pay for his own funeral? He also clearly would not have had a mortgage or likely a family to provide for then.

I suspect and he seems to have appreciated it, his Mum thought it was right for him to start taking responsibility for his financial affairs and so leaving enough money to pay for his funeral was a start down the right road in that regard? Good on them both!

Rosemary7391

A very basic funeral doesn't cost all that much - given the likelihoods involved, I'd suggest it'd be better for a 16 year old to get some savings behind them than to get life insurance! Savings are multipurpose, life insurance doesn't do much good at all at that age... I have no life insurance, I'm 25 with a mortgage. If I die unexpectedly, my emergency savings will pay for the funeral, my flat will be sold to cover the mortgage and my parents will have whatever is left (or the student loans company might). No need to plan beyond that until you're responsible for anyone other than yourself.

chucknorris

ThinkingOutLoud wrote: »

This is a weird reply chucknorris? He was 16 just starting his first job - why would you assume he could pay for his own funeral? He also clearly would not have had a mortgage or likely a family to provide for then.

I suspect and he seems to have appreciated it, his Mum thought it was right for him to start taking responsibility for his financial affairs and so leaving enough money to pay for his funeral was a start down the right road in that regard? Good on them both!

I didn't assume that he could pay for his own funeral, But it isn't smart to take out life insurance at 16, it would be much better to start saving and/or investing.

I don't believe in insurance (unless it is a legal obligation, like car insurance), I don't even have property insurance for my home.

chucknorris

Rosemary7391 wrote: »

A very basic funeral doesn't cost all that much - given the likelihoods involved, I'd suggest it'd be better for a 16 year old to get some savings behind them than to get life insurance! Savings are multipurpose, life insurance doesn't do much good at all at that age... I have no life insurance, I'm 25 with a mortgage. If I die unexpectedly, my emergency savings will pay for the funeral, my flat will be sold to cover the mortgage and my parents will have whatever is left (or the student loans company might). No need to plan beyond that until you're responsible for anyone other than yourself.

Exactly! Life insurance for a funeral at 16 is a waste of money, as you say far better to build up some savings and/or investments.