Do we really need life cover?

Bogof_Babe

My husband and I have decided to cash in one of our underperforming Endowments. I phoned for a quote today, and we will get back only about £75 less than we've paid in over the last 17 years, so we've decided to quit before it gets worse.

We paid off the mortgage some time ago, so were only keeping up the payments to produce a lump sum on maturity in 2013, plus the life cover. However I fear the policy may be virtually worthless in another 8 years, so have decided to bite the bullet. We had a red alert letter in the post this morning, which has prompted this decision.

There are just the two of us, no dependents or children, and we have savings and, in due course, modest company pensions, which will be adequate when added to our anticipated NI pensions. We are both in our mid-to-late 50's.

The other small endowment is in my husband's name, and we may or may not dispense with it at some stage, but it's a comparatively small monthly outlay so there's no immediate panic.

To get to the point - is there any need to take out life cover for either or both of us? I feel we could manage adequately, although not lavishly, should either of us be left alone, and we are in a phase of consolidating necessary outgoings and reducing non-essential ones, to build up our cash/investments "safety net".

I'd be grateful for any advice. Many thanks.

sneekymum

I think you should try Cavendish Online for a quote on a stand alone life policy - even for a small amount £20K?

We have no need of life insurance either but I think that in the aftermath of a sudden death (what if your husband never came back TODAY) it would be better to have the security of a lump sum to get you through those days - and relieve any worries about funeral expenses. Its worth having a look to see what the premiums migh be...