Life insurance, needed?

[Fingerscrossed22]

Hi,
I'm a bit clueless and had mixed responses from family/friends, hoping a clearer answer here please.

I am late 30's.
5 children.
I don't own a house , I have no savings.
Married.
In good health ( overweight though) no underlying health concerns , I don'tsmoke or really drink.
Do I need life insurance?

Thanks

How would your husband manage childcare and work if you were to die? Would he have enough disposable income to buy it in?

For the children’s sake, yes.

Of course you do. Yoh have 5 children to provide for.

It's worse because you own no house so presumably few existing assets. How will their father care for them and work if you die? How will he pay all childcare and living costs alone?

Such a weird question to ask. Unless he is already doing all parenting and financial provision and you sit around doing nothing 24/7 then the children would need financial provision to cover the gap of whatever contribution you make/ would make, now and also into the future until they are independent adults.

You haven't mentioned the most important things.
Do you work?
How old are the DC?
How much does DH earn (or is he a SAHP)? (I'm guessing neither of you earn a lot if you don't have a mortgage or savings).
How much if anything do you claim in benefits
as a family?

The most basic question is what would DH do financially if you got run over by a bus tomorrow?

If the answer would be that he'd be largely dependent on Universal Credit for several years then it's possible that life insurance might not be very helpful if the worst happens as it would disqualify him from UC until he'd spent it. But you'd need to do sums.

Most certainly.

If you were to die tomorrow what would your husband do about raising your 5 children? Would he stop work so he was around to take them to school, pick them up at 3.30 and look after them through all the school holidays ?? Or would he prefer to carry on working & employ an audience pair or nanny to do that for him.

As to which insurance cover to have & how much then that's another question. Rather than getting a simple lump sum policy you could look at a "Family Income Benefit" plan. This pays out a (tax free) monthly amount for a set period of time. Usually I would suggest until the youngest has left school or college, so say until age 18 or 20. This type of plan is usually cheaper than the usual Term assurance policy.

It depends what your aiming for.

When we were younger we took out decreasing insurance to cover the value of the house. So if either I or DP passes then the house is secure and it’s one less thing to worry about. DP or I could then choose to work or not (ie. To concentrate on mourning or the children). And if it’s recent there’s many years for one of us to financially recover.

I have chosen an extra insurance for myself as I was denied life insurance due to health a number of years ago. So when I was allowed it again I really doubled down on the provision. It runs to age 75, and will increase with inflation + a certain % every year. So currently it’s around a 150k, by 75 it’s estimated to be between 1-3 million depending on inflation. I can pause it the value / cost or keep paying and it will keep increasing. I wanted to lock this in in case I get ill again.

My partner really should look at sorting out an increasing provision as well. But he’s younger and currently in good health so fingers crossed shouldn’t be an issue.

Of course you do.

You haven't mentioned a partner. If you are a single parent then a million times YES you need it. Who do you think will provide for your children if you get hit by a bus? Even a funeral is thousands. It doesn't have to cost a lot every month but you'd be surprised how much cover you can get for a small premium.

Yes you need life insurance for both you and your spouse. Anything could happen and if it does, the remaining partner would be a widowed parent and even though there is a small allowance and they'd receive some UC, they'd have to juggle work and childcare alone.

Life insurance would give them the space to take some time away from work to grieve and rearrange their life to manage their new circumstances as best they could.

You've got 5 kids. What happens to them if you die?
.

Yes, what did you imagine would happen with your 5 children if you died?

The other question is whether you've paid enough National insurance to be eligible for Bereavement allowance.