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Original poster

Do we need life insurance?

31 replies

daisidoo · 01/12/2023 18:06

Recently married, trying for a baby. In our 20s. Renting but hoping to buy in the next few years.

Do we need life insurance in this scenario? Can anyone recommend any providers and rough monthly costs - I understand it’s circumstantial in many cases but we are active, no underlying conditions that we know of, don’t smoke etc.

OP posts:
Daisies12 · 01/12/2023 18:07

id say yes but perhaps only if you have a child.

Original poster
daisidoo · 01/12/2023 18:14

Daisies12 · 01/12/2023 18:07

id say yes but perhaps only if you have a child.

So fine to get once our child is born?

OP posts:
Notalldogs23 · 01/12/2023 18:17

There are online quote calculators where you can put basic info in and get an idea of how much it would cost, play around with terms etc.

Check if you and your husband have death in service benefit from work.

Motomum23 · 01/12/2023 18:30

You could get £100,000 of life cover for approx £10pm possibly less. Its worth it. Also usually covers a life changing amputation and terminal diagnosis etc

MinnieMotor · 01/12/2023 18:43

If you are not financially dependent on each other then no, but if you couldn't afford your home without each other then you most definitely do. By your home I mean able to rent equivalent place.

anon2134 · 01/12/2023 18:53

You need life insurance to buy a house

youngones1 · 01/12/2023 18:56

anon2134 · 01/12/2023 18:53

You need life insurance to buy a house

No you don't, although they brokers always try to sell it to you.

AHelpfulHand · 01/12/2023 18:56

anon2134 · 01/12/2023 18:53

You need life insurance to buy a house

Those days are long gone

CantFindTheBeat · 01/12/2023 19:03

At your age and with your circumstances, life insurance is usually very reasonable and you can take your pick from numerous providers.

Having a lump sum available should the worst happen seems like a wise decision to me.

Isleoftights · 01/12/2023 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.

TheLocust · 01/12/2023 19:14

Isleoftights · 01/12/2023 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.

Makes far more sense to make provision for yourself rather than rely on the pittance the state might provide. Life insurance is relatively cheap in your 20s.

BIossomtoes · 01/12/2023 19:15

Isleoftights · 01/12/2023 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.

Shocking advice. Life insurance will pay off your mortgage if you own a house, that’s huge. No state benefits will ever be more than a tiny fraction of the payout of a good life insurance policy. Some jobs have good death in service benefits though, my BiL’s was over £1 million.

CantFindTheBeat · 01/12/2023 19:18

Isleoftights · 01/12/2023 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.

What's your evidence of this, @Isleoftights ?

thelonemommabear · 01/12/2023 19:33

I only took life insurance out once I had children - as the main earner I wanted to ensure that they were adequately provided for in terms of paying a sizeable chunk off mortgage etc

OhDoh · 01/12/2023 19:35

I would. Get £100k or more now at a low rate in case something happens and you can't get it in future.

user628468523532453 · 01/12/2023 19:41

If you're currently healthy, then it's the time to get it. Once you pick up excluded health conditions you won't be able to get cover for the health conditions or anything related to them.

You may want to consider critical illness insurance (pays out whilst still alive) instead of / as well as life insurance (pays out when you die).

Pushkinini · 01/12/2023 19:41

I took out life insurance and critical illness cover when I was in my mid 20s and had a child. I was very glad of the £90k payout when I got diagnosed with cancer. I'm still paying for DH, but it's getting expensive now as he's nearly 60. Definitely get some while you're young OP.

HamBone · 01/12/2023 19:44

I would, it’ll be cheaper to start it now and as PP’s have said, once you have a child, you need to think about their long term future.

Sad story, but a friend of mine lost her DH through a freak accident just four years after they married. His life insurance made a huge financial difference to their family. That convinced me that it’s worth it (we have it).

gamerchick · 01/12/2023 19:51

Cheaper to get it at your age. Goes up every year.

Isleoftights · 01/12/2023 19:54

CantFindTheBeat · Today 19:18

Isleoftights · Today 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.
What's your evidence of this, @Isleoftights ?

That's the ways the way means-tested benefits work (doesn't apply to contribution based benefits eg. State Pension). Clue is in the name - whether you get a means-tested benefit eg. Pension Credit, Council Tax Benefit, Mortgage Interest Support (SMI) etc. depends on one's means (income/capital).

HamBone · 01/12/2023 20:05

Isleoftights · 01/12/2023 19:54

CantFindTheBeat · Today 19:18

Isleoftights · Today 19:10

Any Life Insurance payout to you would only reduce any financial help from the State, should you ever need to apply for benefits, ie. you'd be penalised for having Life Insurance. I'd save your money - buying a house you are going to need it.
What's your evidence of this, @Isleoftights ?

That's the ways the way means-tested benefits work (doesn't apply to contribution based benefits eg. State Pension). Clue is in the name - whether you get a means-tested benefit eg. Pension Credit, Council Tax Benefit, Mortgage Interest Support (SMI) etc. depends on one's means (income/capital).

That’s a good point@Isleoftights , but who know which benefits will be available in 10, 20 years? Surely it’s better to know that you’ll get a lump sum if tragedy strikes and not rely on a shrinking benefits system.

BarbaraofSeville · 01/12/2023 20:08

You have to consider the financial impact of one of you dying. It might be completely unnecessary as child free renters, but with a child and or mortgage much more likely to be needed, eg you'd struggle to pay the mortgage on a single income especially if you also had childcare costs or wanted to give up work.

But as well as a 'life insurance policy' consider what your pensions would pay out. Some have a significant entitlement.

whatwhhat · 01/12/2023 20:11

Sorry, jumping on the thread with a question. Those of you saying getting life insurance younger is cheaper, does that mean while you are younger it is cheaper or that it will be cheaper in the long run (like it would be less a month if you started paying in you 20s than if you started paying in your 40s, or it would be generally the same price for both scenarios in your 40s)

Tiddlywinkly · 01/12/2023 20:11

Yes and as someone said, the sooner the cheaper

anon2134 · 01/12/2023 20:13

@youngones1

@AHelpfulHand

I had to show proof of life insurance for both myself and my husband to my solicitor when I bought my house 4 years ago.