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

ThinkingOutLoud_2

I assumed that because you posted this

Why on earth would you want life insurance when you are 16?

and like the poster - the obvious benefit to me was to not to be a burden on anyone left behind = funeral costs.

A very basic funeral doesn't cost all that much - given the likelihoods involved

So this is two very separate things:-
- how much for a basic funeral - looks like £1600 according to the https://www.moneyadviceservice.org.uk/en/articles/how-much-does-a-funeral-cost excluding any wake. With average emergency UK persons savings way below this - finding that sum as cash unexpectedly would be tougher for many without your home or savings.
- The risk of death is a factor of age and health for sure, hence the premium for nearly £100k of life cover for 25 years is £5 at age 16. Of course, he would still be paying £5 for that cover when a new policy would have costs him a lot more later in life. BUT it depends what his job was doing - as a roofer or chimney sweep or on a building site - his risk of early death is much higher (being 16 makes no difference if you fall or a beam hits you on the head).

But, chucknorris, I agree tomorrow is Friday and life is uncertain and short.

chucknorris

ThinkingOutLoud wrote: »

I assumed that because you posted this
and like the poster - the obvious benefit to me was to not to be a burden on anyone left behind = funeral costs.

Well you assumed incorrectly, and it isn't the obvious thing to do either, only to the financially naive, but it's a bit unfair for me to say that about him because he is only 16, no doubt in time he will learn, and this website isn't a bad place to start.

The obvious thing to do is to start saving and/or investing.

beecher2

It used to be the norm to get 10 year assurance policies from the Co-op, everyone in my family had one as children, and we halved the payout with my mum. The Co-op man came round just about every door for payment where we lived.

ThinkingOutLoud_2

Not everyone agrees that putting a the few pence needed towards covering the costs of your funeral is waste of time. It depends on your circumstances perhaps...

I am clear chucknorris you have stated that life insurance is a waste of time, so we won't agree on this. But with £5M to your name - your view may not be universally applicable any more than mine is.

https://www.theguardian.com/society/2016/mar/30/grieving-low-income-families-pushed-into-funeral-poverty-say-mps
http://www.moneywise.co.uk/household-finances/energy-water/how-to-pay-your-funeral

The recent discussion at government levels around covering child funeral costs and the stories that emerged highlight the impact on those left behind when there is no or inadequate provision.

Having cover for your funeral costs at any age does not stop you saving or investing.

PS I think ArtDeco was talking about when he was 16 - perhaps along time ago - before MSE was a twinkle in Martin's eye. Financial guidance was limited and habits were different.

chucknorris

ThinkingOutLoud wrote: »

Having cover for your funeral costs at any age does not stop you saving or investing.

No, but it does the reduce the amount that you save or invest. If I was daft enough to have taken out funeral cover, there is no way that I would have what I now have. These funeral cover schemes that you see Parkinson advertise on tv end up with most people having paid more in, than the cover they actually receive, and if they cancel they no longer have the cover. The much smarter thing to do is get your savings/investments built up ASAP.

ampersand

What sort of insecurity or inability to correctly read makes chucknorris chuck in a self-estimateof"worth", irrelevant to op?

Peculiar.

chucknorris

ampersand wrote: »

What sort of insecurity or inability to correctly read makes chucknorris chuck in a self-estimateof"worth", irrelevant to op?

Peculiar.

Not insecurity, it was this comment which was said to me, to which I was responding:

Art_Deco wrote: »

unless you want the council to pick up the bill and put you in with a few other paupers, each to their own.

Actually it is a fair bit more than that, I just threw in a round number

dunstonh

TadleyBaggie wrote: »

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%.

They are not designed to make money like an investment or savings plan unless set up on minimum basis. However, in that case, they would hardly have any life assurance sum assured. There were primarily a life assurance plan with an investment element. They went obsolete by mid 90s.

It used to be the norm to get 10 year assurance policies from the Co-op, everyone in my family had one as children, and we halved the payout with my mum. The Co-op man came round just about every door for payment where we lived.

10 year/15 year savings endowments were the staple long term regular investment option for most for generations. They became obsolete with PEPs going mainstream.

kingstreet

chucknorris wrote: »

I don't believe in insurance (unless it is a legal obligation, like car insurance)

You can avoid that by depositing £0.5m with the Bank Of England, if I remember my CII exam from 1986.

Yep. Still in the RTA;-

144 Exceptions from requirement of third-party insurance or security.

(1)Section 143 of this Act does not apply to a vehicle owned by a person who has deposited and keeps deposited with the Accountant General of the Senior Courts the sum of £500,000, at a time when the vehicle is being driven under the owner’s control.

chucknorris

kingstreet wrote: »

You can avoid that by depositing £0.5m with the Bank Of England, if I remember my CII exam from 1986.

Yep. Still in the RTA;-

Thanks, I never knew that, although I won't be rushing out to do that, as the opportunity cost would be more expensive than the insurance itself. I think my car insurance is only about £220, so on £500k that would only be a return of 0.044%.

I wonder if anyone has ever done that, maybe for an extremely expensive car?