Is there any point in having life insurance?

BridgetTheCat

Is there any point in me getting life insurance?

I’m single with no children or other dependents.
I own my house, mortgage will be paid off in the next 3-5 years.
I’m 5 years from retirement.
I’m in the LGPS which pays out a lump sum for death in service or retirement up to age 75.
I’m organising a prepaid funeral plan.

I’ve thought about critical illness cover but my job does 6 months sick leave on full pay plus 6 on half pay, and there are options for retirement on ill-health.

I can’t see any reason I’d need life insurance. Am I missing anything?

kimwp

I didn't see any point as I didn't/don't have dependents. 

david29dpo

As above
I only had it to pay off my mortgage, ended last week!
No need for it. No ones going be benefit from it (other than the insurance company)

daveyjp

Being in LGPS means you already have a limited level of life insurance, just ensure your nomination paperwork is up to date which gives details of the beneficiary for any payout.

itsthelittlethings

You could nominate a charity but I think that would be a bit of a waste of money.

Keep_pedalling

Sound unnecessary. What is important is that you have a will and lasting powers of attorney in place.

itsthelittlethings

Life insurance is for children or if you have a partner (usually a woman) who has taken time off to care for children and do not been able to earn their own money.

DullGreyGuy

BridgetTheCat said:

Is there any point in me getting life insurance?

I’m single with no children or other dependents.
I own my house, mortgage will be paid off in the next 3-5 years.
I’m 5 years from retirement.
I’m in the LGPS which pays out a lump sum for death in service or retirement up to age 75.
I’m organising a prepaid funeral plan.

I’ve thought about critical illness cover but my job does 6 months sick leave on full pay plus 6 on half pay, and there are options for retirement on ill-health.

I can’t see any reason I’d need life insurance. Am I missing anything?

People have strange ideas what Life Insurance is there for, by design it's there to make up the financial shortfall your dependents will have on your passing. If you have no dependents and no realistic prospects of dependents then you have no need for life insurance. 

itsthelittlethings said:

You could nominate a charity but I think that would be a bit of a waste of money.

Insurance companies are, unsurprisingly, a for profit organisation meaning that on average the majority of people pay in more than they ever receive back. Now if you've a spouse who can't work, a disabled kid and a £500k mortgage then its going to be worth exchanging the risk of leaving them broke and homeless for insurance premiums that'll be a tiny fraction of the payout (most "insurance" policies lapse before death, "assurance" policies are different). 

If you're wanting to leave a nest egg for a charity and dont particularly care how big it is then you are much better off putting it into savings/investments whereby you arent having to also cover all the operational and sales cost of an insurer. 

Keep_pedalling

itsthelittlethings said:

Life insurance is for children or if you have a partner (usually a woman) who has taken time off to care for children and do not been able to earn their own money.

I would say it is just as important for a stay at home mum to have insurance, child care cost are going to be substantial if a single surviving  parent is going to be able carry on working as before. 

user1977

DullGreyGuy said:

BridgetTheCat said:

Is there any point in me getting life insurance?

I’m single with no children or other dependents.
I own my house, mortgage will be paid off in the next 3-5 years.
I’m 5 years from retirement.
I’m in the LGPS which pays out a lump sum for death in service or retirement up to age 75.
I’m organising a prepaid funeral plan.

I’ve thought about critical illness cover but my job does 6 months sick leave on full pay plus 6 on half pay, and there are options for retirement on ill-health.

I can’t see any reason I’d need life insurance. Am I missing anything?

If you're wanting to leave a nest egg for a charity and dont particularly care how big it is then you are much better off putting it into savings/investments whereby you arent having to also cover all the operational and sales cost of an insurer. 

Or set up a regular payment to the charity of an amount equivalent to the premiums...

DullGreyGuy

user1977 said:

DullGreyGuy said:

BridgetTheCat said:

Is there any point in me getting life insurance?

I’m single with no children or other dependents.
I own my house, mortgage will be paid off in the next 3-5 years.
I’m 5 years from retirement.
I’m in the LGPS which pays out a lump sum for death in service or retirement up to age 75.
I’m organising a prepaid funeral plan.

I’ve thought about critical illness cover but my job does 6 months sick leave on full pay plus 6 on half pay, and there are options for retirement on ill-health.

I can’t see any reason I’d need life insurance. Am I missing anything?

If you're wanting to leave a nest egg for a charity and dont particularly care how big it is then you are much better off putting it into savings/investments whereby you arent having to also cover all the operational and sales cost of an insurer. 

Or set up a regular payment to the charity of an amount equivalent to the premiums...

If you can guarantee you won't need the money absolutely, would also protect it from care fees I imagine.