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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

not to have life insurance

40 replies

thefudgeling · 18/04/2012 10:41

I am a postgrad student, my husband is a self-employed tradesman. We have a ds (1 yo). We do not have life insurance. Are we irresponsible parents?

OP posts:
Dropdeadfred · 18/04/2012 10:43

Can you afford some? If so I would advise it for peace of mind.

BubbleBobble · 18/04/2012 10:48

I wish to god I'd sorted out life insurance. I didn't think I needed it because I have a death in service benefit with work, but then I was diagnosed with breast cancer (curable, as far as these things are!) and a life insurance policy would most likely have given us a payment, which would have helped immensely as I had to stop work during treatment.

I'd recommend getting a policy if you can, even if it's only a fixed term one until dcs are adults.

BubbleBobble · 18/04/2012 10:48

Btw, I don't think it makes you irresponsible parents. I think lots of people just don't get around to sorting things like that out.

peugotgringo · 18/04/2012 10:54

I think calling you irresponsible would be harsh but I think you realise yourself that you need something in place.

Presumably you don't have a mortgage?
And your self employed husband has no insurance in place either like critical cover? How would you pay the bills if he has an accident?

Speak to an advisor and get something basic at the very least and asap.

Original poster
thefudgeling · 18/04/2012 10:56

We have a mortgage, yes. Does that make a difference?

OP posts:
Original poster
thefudgeling · 18/04/2012 10:56

But no critical cover.

OP posts:
Tigresswoods · 18/04/2012 10:56

Please get some. It's cheaper than you think.

WhenDoISleep · 18/04/2012 11:01

I would not say that you are irresponsible - life protection is not something a lot of people like to think about. Given you now have a child, I think that you are sensible to get something set up.

I would get a basic affordable policy in place for both you and DH asap. You also need to look at other type of protection policies for your DH especially, given he is self-employed how would you manage in the event of an accident that meant he could no longer work?

I would recommend speaking to an advisor though, to find the best cover for your current situation.

peugotgringo · 18/04/2012 11:05

I was of the understanding that you needed to take life insurance when you get a mortgage? however i'm clearly wrong on that score (or they changed the rules after you took yours out)

Do you have any kind of insurance at all to cover for loss of earnings?

People insure their homes, cars, holidays, weddings etc but don't think they will ever need life or critical so think it's a waste of money.......however how many people have actually made an insurance claim on those other policies?

MeconiumHappens · 18/04/2012 11:06

ive just got some because we're having a baby. I was surprised at how cheap it is and thats why i took it out. It £5.50 a month for £100,000 cover for 21 years with Aviva. No critical cover. Check out money sving expert website for advice.

pinkdelight · 18/04/2012 11:09

i'm pretty sure it's always been a condition of our mortgages that we have life insurance. is that not standard?

Original poster
thefudgeling · 18/04/2012 11:10

Well, tbh I'd never really thought about it before but it came up in a conversation with a friend yesterday. I think seeing as it seems to be affordable we really should get some. Thanks everyone, you've galvanised me into action!

OP posts:
Original poster
thefudgeling · 18/04/2012 11:11

But, no, when we got the mortgage the broker just said we should get some, but we still got the mortgage, then forgot about it.

OP posts:
Toughasoldboots · 18/04/2012 11:16

This reply has been deleted

Message withdrawn at poster's request.

SalopianTubes · 18/04/2012 11:24

Life insurance doesn't need to be v expensive. I'm paying £7 a month for enough cover to pay off the mortgage and a substantial sum of cash if my DH couldn't work for a while cos of childcare etc.

We've just had a look at taking on critical illness cover, that is much more expensive. It's very difficult to compare and contrast policies as each one have very specific exclusion clauses. If you later fall ill with an excluded condition the policy's not worth the paper it's written on.

My DH had a look on money saving expert and (i think) martin lewis recommends Lifestyle Protection Insurance as a possible alternative. It's more of a catch all for loss of income, less exclusion clauses etc, but again needs the small print carefully examining.

DivineInspiration · 18/04/2012 11:29

Even just having a policy which covers your mortgage is good, for peace of mind. I don't think you're irresponsible - nobody wants to think about the worst.

We have life insurance and critical illness cover as a condition of our mortgage. Personally, our policy looks pretty insubstantial to me. It only covers certain types of cancer, for example, and only then if we can 'prove' it wasn't our lifestyle which caused them. Likewise it doesn't cover us for death due to 'dangerous activities' - we're both bikers so aren't covered for motorbike accidents. The critical illness bit excludes loads of conditions which could render either of us unable to earn a living.

I'm sure you can get better/more inclusive policies, though.

LadyKooKoo · 18/04/2012 11:35

We pay £40 a month for both of us with L&G. It covers us for £150k each if we died with another £50k if either of us was diagnosed with a critical illness. We would also get £100k if anything happened to DD and one of us had to give up work. I spent six months off work when pregnant as I got very sick very quickly so having something like this gives me peace of mind for the unexpected.

BettySwollocksandaCrustyRack · 18/04/2012 11:46

I thought if you had a mortgage you have to have life assurance?? We have assurance (not insurance) and it costs us £10/month - if we or DH die then the mortgage automatically gets paid off.

DH is a builder and we dont have any other insurance although it;s on our list of things to do...along with doing a will!

Noqontrol · 18/04/2012 11:51

Sort it out, you need life insurance and insurance to cover you if you're not at work through sickness. My husband got diagnosed with an aggressive form of cancer last year. We have insurance in case one of us dies, but not if you get sick and can't work. So we're pretty skint at the mo as oh has been off work for a year. You just don't know what's round the corner for you, my oh is only in his early 40's. So yes, life insurance is a must. Wished I'd thought about it a bit more clearly when I first took the policy out.

ToryLovell · 18/04/2012 11:52

I suppose you have to think about how you would manage financially if something were to happen to one or both of you.

So if one of you died would the other one be able to pay the mortgage / bills etc?

How would you pay for a funeral?

If both of you died, would you want to be able to leave money to care for DCs?

TroublesomeEx · 18/04/2012 11:53

What's the difference between life insurance and assurance?

I don't have either although I've looked into it several times. It's just the complexity (of perceived complexity) of it all that sends me shuffling away again. Blush

Original poster
thefudgeling · 18/04/2012 11:55

Thanks all, and I'm really sorry to hear that, Noqontrol.

OP posts:
sarahtigh · 18/04/2012 11:57

critical illness cover and own occupation ( as opposed to any job) insurance is expensive but just straight life cover of is not expensive especially is age limited policy say for 25 years until DC old enough to stand on own feet and cover your mortgage

if on repayment mortgage can get diminishing cover for about £5 a month depending on mortgage as you don't have mortgage provided you both healthy and none of your parents died young from inheritable diseases it should be quite cheap but do not even think of hding any tiny problem as they will use it to get out of paying

Noqontrol · 18/04/2012 11:57

Thanks thefudgeling. Xx

BettySwollocksandaCrustyRack · 18/04/2012 12:06

Folk - Insurance is for something which MAY happen, Assurance is for something which WILL happen.....that's how I understand it anyway.

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