Life insurance

riasavepennies

I really am at a loss and whenever I start looking I find myself down many rabbit holes. I am looking for life insurance, not too expensive, just something to leave my daughter. I am 55 and have a few life long illnesses, leading to me being on disability. Obviously as I am on benefits I cannot afford a massive amount but I do not own my own home and would like to leave her something when I die. Any advice or help would be appreciated.

mebu60

Have you asked your daughter if she wants this? She may prefer that you spend the money on yourself.

Have you considered opening a savings account and paying money into that? If there's no alternative arrangement for funeral expenses it would help with that and any remaining funds could go to your daughter.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6659333/life-insurance

So do you want it to be left if you die at 115 years old?

Life insurance is immediately split into two, term insurance and whole of life. The former is relatively cheap but it only pays out if you die before a certain age, if you survive past that the policy simply ends. Its what most people need because its to protect people who are financially dependent on them and most people arent dependent on their 115 year old parent.

The alternative is whole of life insurance, as long as you keep paying it will pay out no matter how long you live. The problem is that most have reviewable premiums so not only is it more expensive on day 1 because they know every policy will ultimately pay out but its price will increase over time. This is useful if you are cash poor but asset rich and dont want your kids to have to sell the ancestral home to pay the IHT when both of you die but you can certainly end up paying much more into the insurance than the insurance will ultimately pay out.

It may be better to put the money into a stocks and share ISA or something else to give as a nest egg at the end if there's just a wish to give something rather than thinking you are having to make up for years of lost income for your spouse or such.