life insurance

[fonzerella]

Hi! Trying to get life insurance for dd (2 years) but struggling as she's under 16. Know its a bit morbid, but had friends who recently struggled with cost of funeral for their ds and its made us think. Any one able to advise on companies they've used?

[titchy]

I suspect you won't get it cos it's unethical. Adults need life assurance becuase their financial contribution to the household would need replacing, but a child doesn't contribute financially so why would their life need to be insured?

A savings plan would do the same and be much more beneficial in the long run, assuming you have no reason to think your child may die before they are an adult.

[fonzerella]

Thanks titchy, a fair point . and it is a horrid thing to think about. Its was just seeing friends being caused so much stress by something they shouldn't have had to be worrying about at that time that made dh and I start to think about own finances. We've sorted out own life insurance, maybe savings would be way to go.

[lobsters]

Have a look at your own life insurance, years ago I worked in the industry and I know the policy I was dealing with also included £20k of life and critical illness cover for any children you had automatically, and you could claim for the child if needed and the over for you would still be in force.

[mosschops30]

What an odd thread . Have never heard of anyone taking out life assurance for a child

[fonzerella]

I know my parents always had life assuarance for me and my siblings when we were children, but the world is obviously a more cynical place these days! Thanks for advice lobsters.

[mosschops30]

What your parents got a pay out if wither you or your siblings died????
Sorry but I am totally shocked by this.

We have life assurance that pays out if me or dh dies that would provide for the dc's but not the other way round.

[AMumInScotland]

DH and I are both covered - which would allow the other to stay in the house and adjust their work to cope with the new situation. But I've never heard of children having lifa assurance.

I think you'd be better off with a small savings account/plan so that you have the money to cover a funeral in the very unlikely event of needing one, and then you've got the money for something more likely later on.

[fonzerella]

She did Mosschops, and still has one for me even though I'm 40! Her policies were with Liverpool Victoria, and if she didn't claim then there was a cash back reward after a set period of time, eg 10 years, so I suppose it was a kind of assurance / savings account. LV no longer do them though, so obviously peoples ideas have changed. DH and I both have insurance to provide for dd if necessary and she will be well provided for. But as I said at start of thread it was extreme circumstances, lack of savings and a conversation with my mother that made us investigate this and nothing more sinister!

[Paulnosleep]

In order to effect life assurance you need to demonstrate an insurable interest at inception. English case law has set the precedent that a child has no insurable interest and therefore you won't be able to effect a policy. The only way would be if they owed you money and a baby isn't likely to be borrowing from you!

[fonzerella]

Been away, so only just had chance to catch up. Thanks Paulnosleep... that makes sense and sounds like its posted by someone who knows what they're talking about!

[shonaspurtle]

I know what you mean fonzerella. Friends lost their ds a couple of years ago and went into debt for the funeral as their savings were all used while he was ill. I know it was a worry for them on top of everything else that they wouldn't be able to pay for a proper funeral. (and god knows I wish they'd said something as their friends would have loved to help)

It's horribly morbid but a saving scheme for your dd would be a more positive way at looking at things.

[fonzerella]

Thanks for understanding ss. Earlier responses made me feel like a potential murderer! Already have child trust fund... maybe savings would be better option.