Life insurance or savings.

tori.k

We are a bit conflicted over which path to take.
We will be getting a smallish mortgage soon (100K) over 15 years our hope is to over pay and get this cleared in 10/12 years which is feasible, so sensibly we have looked at life insurance, and that is where our plan starts to come undone. Like most people in our forty's we are slowly falling to bits, so are in the kinda healthy group of people where everything is managed well and we are both fine, but insurance brokers make the same noise as mechanics and you know it's gonna cost you, we are talking MODY diabetes, hypercholesterolemia, mild osteoarthritis a real mix of some bad genes and a hard paper round
So we are considering not bothering with life insurance :eek:
Our kids have grown, only one stubbornly refuses to fly the nest,and husband and I have funeral plans in place, if we take out life insurance it will pretty much void the chance of overpaying the mortgage, so hubby has an idea of setting aside £100 a month and us not dying anytime soon :rotfl: with the hope that it would create a buffer fund for whoever remains as the mortgage payment isn't huge.
Honestly is this a totally insane idea?

HappyHarry

Have you got some quotes for life assurance, even with your medical history?

Even if you're falling to bits, £100 per month in your 40's would normally provide a lot of cover. If you only need £100,000 for 15 years then you might be surprised at how low the final cost is.

It would be worth speaking to a broker, regardless of the noises they may make.

tori.k

We are seeing one next week a couple of online quote's put the figures at over £100 before we even started with medical conditions, but that was level life insurance it got slightly better when I found some decreasing quote's.

ThinkingOutLoud_2

If your aim is to solely cover the mortgage - then level cover is not really matching up.

The cost / risk of you dying in 10 years is greater so the prospect of paying out 100k that far in the future is naturally going to cost far more than paying out the fractional balance owed in the last year...

Do you need it? What happens to those left behind if one of you dies? Do they lose their home?

tori.k

We would only need decreasing, I just hadn't realised when I first posted that I'd only had quote's for level. Whoever remains should be able to cover the mortgage payment but most likely would have issues to remortgage so would most likely end up on a more expensive standard rate.so insurance makes the most common sense , hubby just has short arms and deep pockets syndrome at times. And is solely focused on getting rid of the mortgage as quickly as possible to reduce the interest costs. I just think it's a damned if you do, damned if you don't like most things in life.

HappyHarry

tori.k wrote: »

We are seeing one next week a couple of online quote's put the figures at over £100 before we even started with medical conditions, but that was level life insurance it got slightly better when I found some decreasing quote's.

For life cover only? I'm very surprised. Did you, by any chance, include critical illness in your quote? If so, then those figures make more sense.