Do I want life insurance?

johbey

Hello,

My short term life insurance is close to expiring as my youngest child will shortly be leaving compulsory education and I don't know whether to get full life cover???????

I am 48 and living with my long term partner, we are a low income family who privately rent and have no savings. A situation that is unlikely to change anytime soon!

Having recently buried my mother I am now concerned that my two children will have no inheritance or estate left to them to cover all expenses upon my death.

I have recenty had a quote of a £20,000 payout before my 85th birthday for a cost of £10 a month (the amount of payout is restricted by the amount I can afford to pay each month).

I have no idea if this is something I should go for and have no-one I am able to turm to for advice. And, what happens if I live until I'm 86?!!

All advice welcomed and greatly appreciated. Thank you.

dunstonh

I have recenty had a quote of a £20,000 payout before my 85th birthday for a cost of £10 a month (the amount of payout is restricted by the amount I can afford to pay each month).

Why do you need to go to age 85?   

With children, most people go to an age where they think the child will no longer be financially dependent.  That has been getting older of late as children stay at home longer but typically 25 should be fine with most.

DullGreyGuy

johbey said:

My short term life insurance is close to expiring as my youngest child will shortly be leaving compulsory education and I don't know whether to get full life cover???????

I am 48 and living with my long term partner, we are a low income family who privately rent and have no savings. A situation that is unlikely to change anytime soon!

Having recently buried my mother I am now concerned that my two children will have no inheritance or estate left to them to cover all expenses upon my death.

I have recenty had a quote of a £20,000 payout before my 85th birthday for a cost of £10 a month (the amount of payout is restricted by the amount I can afford to pay each month).

I have no idea if this is something I should go for and have no-one I am able to turm to for advice. And, what happens if I live until I'm 86?!!

All advice welcomed and greatly appreciated. Thank you.

So you just want to cover funeral expenses? A Funeral Plan may be a better option which won't tap out at 85. Cost is higher per month but normally only pay for 10 years rather than paying for 37 years and maybe get nothing back. 

How did you cover the cost of your mother's funeral? Did she have life insurance or funeral plan?


Insurance for general "inheritance" is not cost effective, clearly the average punter loses out otherwise insurers would be going bust all the time as not only do they have to pay the claims from your monies but all the other running costs of a regulated business. 

When your kids are younger you are too so the insurance to cover their costs until they are 21 is much more reasonable given the nearer expiry date. 

Brie

My parents had life insurance until all us kids reached mid 20s.  By then we were employed so were self sufficient. And then instead insuring their own lives they insured ours - by buying income protection insurance.  Only one of us ever needed to use it but it did come in handy.  But I wouldn't describe my folks as being low income.  

My OH's parents had funeral plans - bad ones.  They paid £4 a month each for the prospect of getting £250 towards a particularly company providing their funeral.  That might have been ok if they'd only lived a few years but they took these plans out in their 60s and both lived to their 90s.  Not good value.  That said there are some good ones available now the industry has had a shake up.

More important in my mind is having a plan, even if it's a scribble on some paper, of what you want when you go.  So how do you want to go (do not resuscitate etc) and what you want to have happen after (big party at the pub following a low rent service that no one attends or whatever).  It's great if you could put together a power of attorney (only about £85 each or less if your income is really low)  and a will (free is you are willing to donate a smidge to a charity in it) but talking to your kids about what you want is the most important thing so there's no preconceptions.