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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Do you have it?

89 replies

knittedbreast · 10/08/2011 19:33

Life insurance or assurance or what ever its called?

was just reading another thread and one lady said that when you cut back you dont cut that out.

I dont know anyone who does have life insurance, do you have it?

Is it the norm?

isnt it filled with lots of holes that get the company out of paying up?

Thanks

OP posts:

GypsyMoth · 10/08/2011 19:34

yes i do....dont most as part of mortgage??

i got mine seperate as i rent

Andrewofgg · 10/08/2011 19:34

If you told the truth on the application form then no, when you die they pay. I have it.

StrandedBear · 10/08/2011 19:35

This reply has been deleted

Message withdrawn at poster's request.

Fisharefriendsnotfood · 10/08/2011 19:35

Anyone with a mortgage has life assurance, it's a legal requirement now afaik.. We have good policies on both of us

HarrietJones · 10/08/2011 19:36

Yes. We both do. I've one for mortgage & one for kids.

Sassybeast · 10/08/2011 19:36

Yes -I always thought it was a requirement of getting a mortgage.
I also have separate critical illness cover - only costs a few £s a month.

RightUpMyRue · 10/08/2011 19:37

If you buy a house with a mortgage it's generally 'the done thing'. So the majority of home owners will have some.

I don't have a mortgage so I have none.

PhishFoodAddiction · 10/08/2011 19:37

We have some life insurance. I recently took out a policy as if anything happened to me, I'd want there to be a lump sum for DH and DDs. I'm terrible at saving so insurance is the best way for me to provide them with something when I die.

FoundWanting · 10/08/2011 19:38

I have had it since I became a SAHM, when a friend who is a financial advisor pointed out how much my work would cost DH if it had to be out-sourced.

Original poster

knittedbreast · 10/08/2011 19:38

ive never even considered them. we dont have a mortgage so thats probebly why i havent encountered them.

what happens if the company goes bust?

OP posts:

GypsyMoth · 10/08/2011 19:38

i dont have a mortgage and i'm in a HA house,lone parent with 5dc and on benefits. but i still have some

aliceliddell · 10/08/2011 19:38

Yes, got life insured. Take care with crit. illness & payment protection, lots of loopholes.

squeakytoy · 10/08/2011 19:39

We have it as part of the mortgage. It isnt expensive but it is certainly a comfort to know you have it if the worst happens. Death in Service payouts are not usually very high if I remember correctly.

suzikettles · 10/08/2011 19:39

Yes. We've got a joint policy that will pay off the mortgage if dh or I fall under a bus etc.

Also two separate policies that would pay off any debt/leave a decent buffer if something happened to either of us.

There isn't too much in the way of exclusion clauses and if you're youngish and in good health it's relatively cheap (costs us around £25 per month in total).

Basically it's a bet between yourself and the insurance company. I bet that I'll die during the period of the policy (ie before I'm 65). The insurance company doesn't think it's very likely that I will, based on the info I've given them and life expectancy of people like me, so is happy to pay out £100k if I do (because they don't think I will - or at least very few people with policies will).

Paschaelina · 10/08/2011 19:40

We have term assurance as part of the mortgage conditions which is life cover and critical illness cover, so the mortgage should get paid. But we don't have separate life cover for anything above that.

I wouldn't be happy not to have the mortgage covered.

HeathersMummy · 10/08/2011 19:40

Yes, both myself and DH have our lives insured and have additional death in service benefits through work. Why wouldn't you want to leave some money behind so that your family can afford to pay for your funeral?

suzikettles · 10/08/2011 19:42

If the company went bust then you'd take out a policy with another company. It's not cummulative - you're covered from the day you take out the policy, although it gets more expensive as you get older, so better to take out a policy at 25 than 55.

If it went bust when you were in the process of a claim then I guess it'll be covered by a fund somewhere - I think they work like bookies anyway, they spread the risk out amongst each other.

Original poster

knittedbreast · 10/08/2011 19:44

so if you die at 66 your husband/children dont get a payout?

what is death in service-does that mean you die while at work?

i dont have a will let alone insurance...

OP posts:

chicletteeth · 10/08/2011 19:44

WE both have it, me and DH.
If you lie when applying they have a right not to pay you, but if it's on the list of their covered conditions, you will paid.
DH ex-wife got 40k for having breast cancer; she had life and critical illness.
They didn't try not to pay her.

Original poster

knittedbreast · 10/08/2011 19:45

so its cheap now at 25, but if i took it out at 50 itd cost more.

if i took one out now (im 25) would it stay a similar amount when in 50 because ive had it years?

OP posts:

catgirl1976 · 10/08/2011 19:45

Yes - although only took it out recently for both of us as we are expecting 1st child so it seemed the responsible thing to do

ChickensHaveNoEyebrows · 10/08/2011 19:47

Yep. We're both heavily insured. Plus DH has mortgage covering insurance if he carks it, and I'd get a pay out from his employer.

suzikettles · 10/08/2011 19:49

Yes. That's the point of taking it out early. The payments don't go up.

There will be a maximum age that they'll insure you to (can't remember what it is) because the likelihood of paying out will obviously shoot up.

I think our mortgage one stops at 65 because I hope to have paid off the mortgage by then. Can't remember when the other ones stop.

CaptainMartinCrieff · 10/08/2011 19:49

I only have the one you news to get when you get a mortgage... The one that drops as the house is made off (I can't remember what it's called). DH and I are considering getting proper life assurance now we have a DS.

Malificence · 10/08/2011 19:49

I can't imagine not having life insurance, certainly not when you have children.
We've both got life and critical illness policies.
They're essential imho, especially if you are a part time worker or a SAHM.
Life cover has never been cheaper , you can get decent cover for about a fiver a month, depending on your age, I'm 45 and I've just taken out a top up policy for £30k for £5 monthly, it's for DD should anything happen to me.

We're covered for about £200k each for less than £50 a month - £30 of that is for critical illness, which is expensive, but then I couldn't pay the bills alone if DH had to give up work through serious ill health.

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