Is it worth taking out life insurance if you've paid off your mortgage?

[Gaelforce]

Can anyone help with this? I really have no idea.

I would if I had dependants.

Thank you - we have 2 DD at Uni. We would lose any pension because any pay out would bring us over the limit.

Hmm not sure, bumping for you.

I have primary aged DC so got a life insurance policy that would pay out until DC is 25. After that age I figure it would be enough for them to get my savings and property. Ill probably arrange some kind of funeral cover so that is all handled too. I dont have a partner to consider.

We still have life insurance- mine was taken out as a condition of my first mortgage but is still in place even though we no longer have one.

I have similar to Bejewelledcrocs.
It would pay a yearly income ( about 25k) until they are 25. It’s enough to get them established and cover expenses with guardianship. They get the house as well but I didn’t want that eaten into. It’s peace of mind for me.

I still think so. For a smaller amount, now no mortgage ? give loved ones a lump sum? And what about very expensive !! funeral costs.

We have no mortgage and a sizeable chunk in savings. Still have life insurance. Will probably stop it when DC2 turns 21 which is when we plan to semi retire anyway.

I looked at getting a new life insurance but as we are over 40 now it was about £80 a month each compared to my £7 I took out at 30 which has another 9 nine years to run.

It's all dependant on your age, equity and cover I think. Right now for me the premium, cover etc didnt add up while I have good equity on my house anyway.

Yes until your dependents/kids are set up/established in life, it is worth it, just in case. Why risk causing unnecessary financial hardship?
Also worth it for your partner were their income to go down in the event of your death, although some occupational pensions continue to pay 2/3 to spouse.

Pure death cover is cheaper and only pays out should you die within the term of the policy.

Not sure what you mean about losing your pension? Are you still working? If so are yoi entitled to death in service benefit?

First think about what would happen if one or both of you were to die, or be seriously ill and need care.

If your daughters are still financially dependent on you, and if you are dependent on each other, then some kind of provision would be v sensible.

Do you and your spouse both work, and do you both have “death in service” benefits in your contracts? If so, and if either of you can sustain your outgoings without a second salary, then there is no need to pay life assurance premiums on top.
My own employer pays a lump sum as a multiple of annual salary plus a widow/widower’s pension in the event of death in service. There is also a state widows pension.

Depends on your finances and what your family need. K work for life insurance and would say if you have dependants (under 25) who may need help or any loans/debt or a mortgage then yes. But if you’re mortgage free, have savings to cover imminent costs like a funeral then no. As long as your will is written and you have a house or other investments to leave leave behind don’t bother. The amount you pay per month as you get older would probably be better suited in a savings pot you can access whenever needed. If you take a plan out for 10 years but don’t claim then you’re moneys lost and you need a new policy that would be more expensive as your older/possible health comps.

I will add that if your spouse would struggle one one wage and you have no death in service or pension pay out then life insurance would be best but if they’d be ok on their own income then leave it

We both have life insurance in place even though our mortgage has been paid off. It is enough to set our children up without money worries should anything happen to us. We also have our wills made out so its laid out in black and white.

Thanks everyone for responses. They are really helpful.
We are both still working - casual contracts without benefits. Uni fees covered & 1 funeral cost covered
@Ivy48 - after some research today - that is exactly the conclusion we have come to.

Life insurance can be very useful

It can be written in trust so that the payout is outside the deceased estate for IHT. It also pays out pretty quickly at a time when it can be very useful to have cash available, for funeral costs and IHT which has to be paid before you can get probate.

Parents had life insurance which was a one off investment, for which the payoff forty years later represented a very good investment, as well as the other advantages.

@FinallyHere - thank you - I'll look into that - hadn't considered it.