Do I need life insurance?

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LesleyHailey
LesleyHailey Posts: 2 Newbie
in Insurance & life assurance
Hello wise people. When I bought my house I was told I needed life insurance to get my mortgage so I've been paying £40 a month for a few years. I have just seen something saying that as I am single and have no dependents I don't need to have it. Is this the case? I will be leaving my estate to my sister and nieces when the inevitable happens but they don't depend on me. I look forward to your advice!
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  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    If you don't have dependents then usually not needed, but the younger you are the cheaper it is.

    Consider if you are likely to have dependent in the future, least you have got it when it was cheaper
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • glider3560
    glider3560 Posts: 4,115 Forumite
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    csgohan4 wrote: »
    If you don't have dependents then usually not needed, but the younger you are the cheaper it is.

    Consider if you are likely to have dependent in the future, least you have got it when it was cheaper

    I have taken this exact view, no children but chose to take out insurance anyway.

    It is about £6 per month, providing £200,000 cover over a 30 year period (longer than my mortgage). Not increasing, so the £6 and £200,000 become less valuable over time.

    Felt this would be cheaper than paying a much higher premium in later life if I develop any health conditions.

    Also, I'm thinking of it as a cheap way of making a charity donation (through my will) if none of my family are around when I pass.

    OP, you may wish to shop around. No-one "needs" life insurance to get a mortgage. In any case, use the guide on this site to find a cheaper deal.
  • Kynthia
    Kynthia Posts: 5,668 Forumite
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    £40 a month is a lot for life insurance. Does it include anything else like critical insurance? Have you checked your mortgage paperwork to see if it was a requirement of your offer? If not I'd look into whether you can claim mis selling.
    Don't listen to me, I'm no expert!
  • Simby
    Simby Posts: 240 Forumite
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    I have chosen not to have life insurance.

    It’s the one sort of insurance you personally can never benefit from ( as by definition you will not be there to benefit from it) but only your beneficiary will get anything from it.

    While people chose to have it so their family are protected , it is not an insurance that helps the insured in any way only their beneficiaries, and if you want to leave anything to your family is a personal choice.

    Therefore it is not something I would ever contemplate.

    I have health insurance, house insurance and car insurance that is it. The former two because they may pay a benefit to me , the later because it is legally required,
  • LesleyHailey
    LesleyHailey Posts: 2 Newbie
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    When I originally bought the house it was with a partner so they would have been classed as dependent I guess so maybe not mis-sold, have continued paying since we split though. It did include some critical illness but I'm in the military so they pretty much cover that. I've decided to cancel it and shop around for something a little cheaper. Thanks for all the advice!
  • SonOf
    SonOf Posts: 2,631 Forumite
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    £40 a month is a lot for life insurance.

    By what measure? I am paying over £105 pm and its good value. (and its pure term assurnace. No bolt ones).
    Have you checked your mortgage paperwork to see if it was a requirement of your offer?

    No lender does any more apart from on some commercial borrowing.
    If not I'd look into whether you can claim mis selling.
    This is a difficult one. On paper someone who is single, living alone and with no financial dependents does not need life assurance and being sold life assurance would suggest missale (caveat being where there is critical illness cover included where the inclusion of life assurance is common sense). However, FOS decisions have rejected this scenario when the life assurance is covering long term debts as the persons circumstances may change during the life of the mortgage. i.e. find a partner at some point during the term.
  • Marvel1
    Marvel1 Posts: 7,172 Forumite
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    I'm.single with my own house, was never told I need life insurance and there is no benefit to me so I have not got it.
  • rawhammered
    rawhammered Posts: 118 Forumite
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    I prefer to risk not having insurance. I'm naturally very privileged and lucky in life, hence no unfortunate events will happen to me or my family.
  • Weighty1
    Weighty1 Posts: 1,181 Forumite
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    rawhammered wrote: »
    I'm naturally very privileged and lucky in life, hence no unfortunate events will happen to me or my family.
    .......until they do.


    Everyone in life is lucky, until they are unlucky :undecided
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    Weighty1 wrote: »
    .......until they do.


    Everyone in life is lucky, until they are unlucky :undecided



    insurance is a scam... until you need it
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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