What have you got in place, money wise, if your DP were to die?

[BigSandyBalls2015]

Not sure what got me thinking about this!

We are early/mid 50s, two 20 year old DDs, one at uni, one at home. No mortgage and an insurance policy which was taken out years ago to cover the mortgage, expires in a couple of years.

Should I renew this life assurance? Do people do that without a mortgage.

DH earns quite well. I also work but don’t earn as much and I would struggle to stay in those house and pay all the bills on my wage despite not having a mortgage.

What dues everyone else do. Hope he is around a lot longer!

[Shmithecat2]

DHs death in service would give me 7 figures in his current job, plus his personal life insurance. Also a few tangible assets and a healthy 6 figure savings pot. We'd be OK.

[manyan]

Many people can't afford life insurance.

If you pay into a pension it's worth checking if it include a death in service element.

If you have a mortgage it's also usual for it to include a life insurance element for the mortgage policy term.

[thecatsthecats]

He has death in service that would cover the rest of the mortgage, if I also sold up and relocated north near my parents. So I'd then only need to earn basic bills.

[MouseholeCat]

He has life insurance through his work and I have an additional supplementary life insurance policy on him through my work. It'd pay off the mortgage and give me about 2 years of his salary on top of that.

[JustLyra]

We both have life insurance.

We have no mortgage (DH was widowed very young and the insurance paid off the mortgage) so that's not an issue. Having been through it once DH has been meticulous in organising life insurance for us both that would allow him to stop work if I died (our youngest has serious health issues, I'm a SAHP) and/or be able to afford full time nanny when he went back. If he dies it covers bills for a considerable period and covers various set costs until the children are all over 18.

[GrandmasCat]

Financially, nothing would change in my life. Since being screwed right left and centre through my divorce, I have ensured I became and stay financially independent. I have my own house, my own mortgage, my own insurances and my own bills to pay, as he has as well. The only expenses we share is eating out and holidays.

It works for us, I was taken to the cleaners during divorce so I cannot bear to become dependent again. I think he loves me enough to accept me on those terms (thankfully)

[BashfulClam]

Insurance will first mortgage, we have savings and will get death in service from our workplaces.

[Seesawmummadaw]

We’ve got nothing in place. If I go he’s got my pension but tbh I don’t even think he has one.
I pay most of the bills and would cope financially.
Same as @GrandmasCat I’ve been bitten before so am now anal about being able to support myself.

[PickAChew]

Shite all. DH not much better off as I got turned down for new life insurance, last year. I'm 51, healthy bmi and don't have a life limiting condition. I'm just t certifiably creaky.

[Awrite]

Death in service payment, small life insurance linked to previous mortgage (reduces over term) and I could always downsize.

He has the same with me.

[furiouslytyping]

He has a massive pension and life insurance policy through work. If your dp doesn't have any it's definitely worth sorting out.

[Hardbackwriter]

People keep mentioning death in service and that's what we've always figured meant either of us would be fine (we both have generous death in service benefits) but it occurred to me recently that this is fine if DH or I drop dead tomorrow but in the (probably more likely?) event that one of us is seriously ill for a long time before dying - which would presumably wipe out our savings in and of itself - then we wouldn't get it, as I guess we wouldn't be still working. So we do need life insurance, don't we?

[Megan2018]

@Hardbackwriter

People keep mentioning death in service and that's what we've always figured meant either of us would be fine (we both have generous death in service benefits) but it occurred to me recently that this is fine if DH or I drop dead tomorrow but in the (probably more likely?) event that one of us is seriously ill for a long time before dying - which would presumably wipe out our savings in and of itself - then we wouldn't get it, as I guess we wouldn't be still working. So we do need life insurance, don't we?

It’s usually critical illness cover, which is often bundled in with life insurance but not always.
I have a policy that is both, but the list of critical illnesses is limited and to qualify for payout you have to be ill for a specific period. So it’s basically not much good in the first year. Which is ok for me as I get full sick pay for a year anyway. But would be difficult for anyone on SSP.

[MrsDThomas]

No cash of my own saved. We are cash poor but asset rich. House we live in plus land worth £450k. Plus 2 houses we rent out worth approximately £320k combined. He has life insurance. Not much to go on the mortgage so life insurance would clear it and lots left.

Houses we rent, well id sell the cheapest probably. Plus his pension.

[MrsDThomas]

Its awful to think we’d be better off financially if one dies.

[purplesequins]

we both are eligible for death in service benefits. plus life insurance.. plus possibly private pension. plus savings.
financially we would be fine.

[Carrott21]

Would you have to pay inheritance tax? Does his half of the house go to you or dc? Would you be eligible for pension if not married? Would you be entitled to a widows pension if not married? Just asking. I don't know about these things.

[RosesAndHellebores]

We are 60ish and both still working. Both have very generous death in service benefits for as long as we work. DH was self employed for much of his career and had life insurance and critical illness cover then and it became increasingly expensive. Even when I wasn't working my life was insured because dh would have needed significant paid help to deal with the children. More importantly dh transferred enough money to cover four months expenses into my name in the event that he died so there was no immediate crisis whilst payments were claimed.

Once we retire we shall be comfortable. If anything were to happen to dh I don't think I'd stay rattling around in our current house.

[Travielkapelka]

I’ve been there. It’s so important to have cover. I got 7 figures. It means I have no mortgage and properly invested I have an income. Most importantly it means my kids have had no change to their lifestyle at all

[thedarkling]

To have a payout of over a million it must be beyond what the vast majority of people could afford.

We have enough through work to repay the mortgage if either of us dies. That's it though. But without a mortgage either of us could survive on one wage. Kids would get pension payouts. That's it!

[MayorGundersonsDogRufus]

I'm the only earner, so nothing, but we should definitely get something in place for DH and DD in case something happened to me!

[BiddyPop]

DH has various life insurances and savings, all recorded in a file for me to Wade through. Mortgage paid off so at least I have the house.

I have a life insurance policy through work, and there would be a payout from my credit union as well. My savings are not as clearly filed, but I have a document outlining each and have put a hard copy of the current figures in the safe relatively recently so there is a starting point for him.

Both of us work FT so while household income would drop, there would still be money coming in.

[ForTheLoveOfSleep]

No mortgage (council house). I am a SAHP to a disabled child and my husband works a low paid manual job earning around 23k. We are both insured for six figure sums. I am 33. Husband is 39.

[ShadowInVain]

Nothing. I'd be slightly better off, since he lost his job due to Covid and my earnings mean he can't claim anything so he is bringing nothing in - but if he died, I could claim single-occupancy reduction on my Council Tax.

[qualitygirl]

I would highly recommend to everyone to get both of you covered ESPECIALLY the Sahp!! If they die then the working parent has A LOT of adjustments to make and now childcare costs on top of grieving!! If it can be done then I would!!