Life insurance

Coz

Would it be a good idea to have life insurance if you don't have a mortgage, if you are single with one child under 18? If so, how do you decide which insurance company to take out the life insurance with?

WindfallWendy

I chose my life insurance based on conversations with a broker. Others will be more articulate than me, but basically you need to think about what happens (financially) when you die, and when you might die (because some policies only pay out if you die before you are a certain age). And then consider whether it's worth you paying for it against the likelihood of your circumstances leading to the insurance paying out.

E.g. I have insurance that will pay £35k when I die, if I die before I'm 77, or if I'm diagnosed with a terminal illness and expected to die within 12 months. It's a grim topic, this!

Usually life insurance is required by the bank to cover outstanding debts to them when you die. However you don't have to worry about that. So you may have the luxury of exploring lump sum payments and up to what age they are willing to pay out until.

If you don't think anyone you leave behind would need/benefit from a lump sum then don't bother. Check your pension since depending when you die (whilst still working/alive/drawing your pension) different benefits may be passed on, so you might decide on balance that additional insurance is not necessary.

Like I say, others on here will probably offer a more structured response, but hopefully this helps initial think, maybe.

WindfallWendy

On the topic of who to go with, know what you want and then see who offers the closest to that.

Keep_pedalling

Might be worth it if your estate would fall into IHT terretory.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6657310/life-insurance

Generally the question to ask yourself is if anyone would be financially worse off if you were die tomorrow and do you care?

If the answer to either of these are no then you have little need for insurance, though depending on your age some may still buy it as its cheaper whilst you are younger/ healthier and whilst you may be single now doesnt mean you always will be.

If the answer to both is yes then you have a need for insurance.

Speak to a whole of market broker, they can tell you about your options and get prices for you.