Should I cancel life insurance?

casp10

My partner and I recently split up. We have 2 children under 12 and jointly own a house, mortgage-free (and I'm hoping that once we sell our house I'll have enough to buy a small house/flat myself with little or no mortgage). I only work part time and earn less than £8K/year so need to budget carefully; he earns a decent wage and my salary didn't really add much to the famliy income. One way to cut costs could be to cancel or reduce my life insurance policy but is this a bad idea?

Weighty1

What was the purpose of the life insurance you took out?
How would your children's upbringing be affected if you were to die?
(not life insurance related) But if you fall ill then how are you going to cope financially? (You may want to consider income protection - but this could cost more than life insurance)

There's simply not enough info for anyone to ascertain whether you need the life insurance or not and nobody on here, at least not the regulated advisers, would generally advise you to cancel the plan.

casp10

Thanks Weighty1, I hadn't thought about illness cover. Originally, I think the insurance was to the additional child-care costs should I die as I don't work outside of school hours.

Askalaba

You'd really just have to weigh up all of your needs and make a rationale decision. You could always lower the amount of cover you're taking out? Quite a lot of insurers have a £5 minimum premium, so worth seeing how much cover this will get you.


People don't like to think about the worst case scenario. But if you were to pass away with no insurance would your family be OK (from a monetary point of view)?