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Started by Sunfish on Aug 12, 2019 6:29:51 PM
Life insurance! Life insurance! Life insuranc!

I am embarrassed to admit that I don't have any life insurance and it's starting to worry me. Do you have life insurance? What criteria should I be applying when buying some? What sort of factors should I be thinking about? All advice appreciated!

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pmcblonde - 12 Aug 2019 18:38:41 (#1 of 15)

Go to a decent IFA and they will take you through it

bossab2 - 12 Aug 2019 18:42:37 (#2 of 15)

It depends whether your death will inconvenience anyone.

If you die you don't get any money ( being dead)

Ginmonkey - 12 Aug 2019 19:30:08 (#3 of 15)

What do you want it for? Is it to pay off your mortgage or to provide an income for your dependents?

Check what cover you have already - your work may offer a decent death in service benefit. Similarly your pension may offer a lump sum or survivors pension.

widenation - 12 Aug 2019 19:34:11 (#4 of 15)

As above - both my work contract and pension provide a lump sum for any named individual(s). It would be quite easy for me to be unaware of this however.

darkhorse - 12 Aug 2019 19:40:07 (#5 of 15)

We bought approx 300k level term assurance on a joint first death basis via Cavendish (brokers), the term is to roughly when we're 65 and the kids are early twenties.

Couldn't see the point of decreasing term, it wasn't much cheaper, and the survivor (or kids) may as well have the benefit of the extra moolah if one of you carks it aged 64 with the mortgage paid.

I suppose if you start thinking about other forms of insurance such as critical illnesses or accident, it becomes a headache. I get those through work, but I don't think they're great. If I get run over by a bus, it would be more financially sensible for me to die rather than be paraplegic.

darkhorse - 12 Aug 2019 19:44:43 (#6 of 15)

Best get it asap too the earlier the lower the premium. We had to pay a bit extra because we bought it when msdh was preggers.

And since then I've had a chronic condition diagnosed (this doesn't affect the premium though, only pre-existing conditions count, so just as well we bought it when we did).

darkhorse - 12 Aug 2019 19:47:14 (#7 of 15)

Oh yeah, and you're also supposed to write it in trust for IHT purposes aren't you? I keep meaning to.

https://www.confused.com/life-insurance/guides/writing-life-insurance-in-trust#

Ginmonkey - 12 Aug 2019 19:52:22 (#8 of 15)

Oh and if you do get a death in service payment or lump sum be aware you have to nominate the recipent, it does not form part of your estate in the traditional way. Although pension trustees do have some discretion if a family have been left unprovided for.

We found this out the hard way in two ways -

1. Mr Monkey's mum nominated his.youngest brother to have her death in service as he was the only one left at home at the time and their dad had " a bit of an issue with the horses". Sadly she died suddenly not long after and the 20 year old youngest brother splurged the lot. It caused a lot of bad feeling that remains to this day.

2. Mr Monkey's brother in law died suddenly leaving a young widow and two year old son. For reasons unknown he had not nominated anyone for his substantial death in service payment. Luckily his work helped us to plead with the trustees and they decided that in all probability he would have wanted it to go to his wife and son so paid out to her.

Leftie - 13 Aug 2019 12:02:04 (#9 of 15)

No I haven't got any life insurance.

I did have some through work if I stopped in my previous job. If I died at work, my Mam got so much money if I remember rightly.

When I worked at AutoTrader if I was dead on the premises, she got £2000. I don't think it included suicide. Just accidents.

Though having thought about it now. what kind of accidents were they expecting me to have? Is it that unsafe?!

I don't even know why I named my parent on it. I don't really want to give her any money.

Agaliarept - 13 Aug 2019 12:12:27 (#10 of 15)

I have two life insurance policies.

One that covers the cost of my mortgage should I pass before it's paid and another to cover the cost of raising my many children should my wife be left to do that.

The wife and I have often discussed doing the whole Mr Canoe thing and buggering off to Panama.

RosyLovelady - 13 Aug 2019 12:25:43 (#11 of 15)

I know from watching bad tv shows that if you take out life insurance you're just asking to be brutally slain for it.

Heckler - 13 Aug 2019 12:29:32 (#12 of 15)

I took out a policy when i worked at a place that didn't offer death in service, current place is 4 X Salary. Now I'm wondering if I really still need the Life insurance as it's fecking expensive?

crabbyoldbat - 13 Aug 2019 12:34:20 (#13 of 15)

I have no life insurance - I've no mortgage or other debt, and no dependants. Nobody has need for money if I die.

Also, what Rosy said.

InternationalVicar - 13 Aug 2019 12:40:32 (#14 of 15)

I know from watching bad tv shows.

Then you'll also have seen multiple adverts for over 50s guaranteed no medical life insurance with free gift.

The profits come from how many years it takes for the majority of customers to realise it's not worth it and stopping the payments, so a large proportion of policies never pay out.

RosyLovelady - 13 Aug 2019 12:46:45 (#15 of 15)

Aye, the programmes in which having insurance guarantees violent death are surrounded by ads telling you about the strange people who find nothing but fun and laughter for the cost of a small monthly payment.

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