Do I need life insurance?

[54321nought]

Big celebration today, as my final mortgage payment has just gone out!!!

And the last payment of my life insurance policy I took out in conjunction with the mortgage.

So single, no mortgage, and two adult children, both students.

So should I be considering another life insurance policy?

What should I consider? I'm thinking something small to cover funeral costs? What have I missed? I keep seeing adverts, but how does it actually work?

Do others with no mortgage and adult children have life insurance? What sort? from whom? how did you choose?

Anything other aspects at all I should be considering?

Than you for any ideas or information.

Do your children still live at home? I’d probably have a smallish policy that would tide them over should anything happen to you. Just to help with living costs short term perhaps

I would consider it if your children are still at home. Other than that it might be worth it for funeral plans unless you pre-pay for your funeral now x oh, and congrats on being mortgage free! 9 years to go for me

Thank you

Do you have any suggestions what sort of policy I am looking for? Its a jungle out there!

You need to post a lot more information about your circumstances do people can make suggestions. At a minimum, your age, your employment status, whether your adult children are living with you or otherwise dependent on you, how well sorted your pension is, what other insurances you have, etc

In general, life assurance is to replace the financial contribution you’d been making which is lost when you did. So it makes sense for mortgages, if you have minor children who will need to be supported to adulthood, if you have dependent (eg disabled) adult children etc.

If it’s just you, and nobody would suffer financially from your death, then you probably don’t need life assurance. You might well benefit from something like income continuance insurance or critical illness cover if you’re still in employment, or you could invest the equivalent in your pension. There are loads of options and the best choice depends on your specific circumstances.

What @sycamore54321 said, plus the value of your estate and whether your DC currently live in your house in the holidays.

Think about what would happen if you died today (apologies for the grim thought, but you brought the subject up ). Assuming your DC would inherit your house, would there be an inheritence tax bill to pay? Do you have any savings or pension death in service benefit that would pay for a funeral? Would they be happy for your house to be sold or would they want to live in it?

Unless they need to continue to live in your house and you have no cash to pay for a funeral and/or there would be IHT payable you don't need life insurance because, should the worst happen, your house would be sold, this would pay for your funeral and any IHT then (presuambly) your DC would inherit the rest 50/50.

I think that, in a lot of circumstances, life insurance is both oversold to people who don't really need it, ie people who don't have dependents and have assets that can be sold if necessary and lacking in people who might need it, eg to cover a SAHP so the surviving spouse is able to continue working and caring for DC.

@sycamore54321

You need to post a lot more information about your circumstances do people can make suggestions. At a minimum, your age, your employment status, whether your adult children are living with you or otherwise dependent on you, how well sorted your pension is, what other insurances you have, etc

In general, life assurance is to replace the financial contribution you’d been making which is lost when you did. So it makes sense for mortgages, if you have minor children who will need to be supported to adulthood, if you have dependent (eg disabled) adult children etc.

If it’s just you, and nobody would suffer financially from your death, then you probably don’t need life assurance. You might well benefit from something like income continuance insurance or critical illness cover if you’re still in employment, or you could invest the equivalent in your pension. There are loads of options and the best choice depends on your specific circumstances.

age late 50s, soon to retire as a teacher, yes both children live at home, (not in term time, but this is their permanent address) neither are disabled, but both are still technically dependent (just) as in education..

What is the difference between life insurance and life assurance? Or are they the same thing?

@BarbaraofSeville

What *@sycamore54321* said, plus the value of your estate and whether your DC currently live in your house in the holidays.

Think about what would happen if you died today (apologies for the grim thought, but you brought the subject up ). Assuming your DC would inherit your house, would there be an inheritence tax bill to pay? Do you have any savings or pension death in service benefit that would pay for a funeral? Would they be happy for your house to be sold or would they want to live in it?

Unless they need to continue to live in your house and you have no cash to pay for a funeral and/or there would be IHT payable you don't need life insurance because, should the worst happen, your house would be sold, this would pay for your funeral and any IHT then (presuambly) your DC would inherit the rest 50/50.

I think that, in a lot of circumstances, life insurance is both oversold to people who don't really need it, ie people who don't have dependents and have assets that can be sold if necessary and lacking in people who might need it, eg to cover a SAHP so the surviving spouse is able to continue working and caring for DC.

I think both are likely to continue to live here for some years, in the future, so that they can live rent free, and save up deposits for their own homes

We are below the threshold for inheritance tax

Then I would say you don't need life insurance. Presumably you're in the teacher's pension scheme, so would have sufficient death in service benefit if you did die before retirement age, that would pay for your funeral costs?

Plus a lump sum on retirement, of which you could put a portion away to pay for your funeral - many funeral directors (certainly the Co-op) offer a prepay funeral option where you pay a lump sum and it's covered. I'd say not to go for the 'funeral plan' option where you pay £x per month and it pays out when you die, because that's likely to be very expensive if you live more than a few years.

So your DC are not going to be destitute if you die before they're in graduate jobs, because they'll have your house and death in service benefit/ pension lump sum to pay the bills?

Agree with PP that you don't need insurance. Your children will inherit your mortgage free house so can use that to pay for your funeral and to house themselves (I.e. sell your house and buy themselves a flat in their University town).