To be thinking of life insurance?

[Sinkingships]

Inspired by the thread about wills, I've been wondering lately if it would be a good idea for me to take out life insurance.

I'd never really thought about it until recently but lately I've been thinking that I would really like to leave my DC's something when I die and at this rate I have virtually no way of being able to do that unless I win the lottery.

I have no assets of any value, no property, no savings and to be honest I don't anticipate that my financial situation will get a lot better in he future. I have virtually no chance of being able to buy my own home ever.

I feel like at least if I have life insurance I'll have something to leave the DC's, is this a stupid idea? Eldest dc could use the money to get himself on the propety ladder/put himself through uni etc etc. Youngest dc is quite badly disabled and the likelihood is he will never be able to live independantly so if I left him some money it might help pay towards his care. Or is that not how it works? I am woefully uninformed about this sort of stuff, if it a waste of time and money or Aibu to think this would be a good idea?

You do seem confused about what you are looking for.

Insurance is just that - like you car (or motorbike?) insurance, you pay the monthly (or annual) cost but, unless you have an accident or the vehicle is stolen, then they don't give you any money.

Same with pet insurance or boiler cover or contents insurance, etc.,etc. They are businesses there to make money, and gamble on the fact that they won't have to pay out. The premiums are worked out by looking at the odds of them paying out, actually having to happen. Obviously, when something does go wrong, then you are glad you have insured against it - you have to weigh up the importance of that money, against the likelihood of you ever getting it.

Savings to help your dc start their adult life are a different matter.

Both are good to have, but both aren't always affordable. You need to clarify what you are looking for.

If I saved £850 a month every month for 50 years then I'd have 500,000 to give DC's. I can't save that much so if life insurance is less than that then it's a better deal, surely?

Firstly, you appear to be ignoring any investment gain. To get a 500000 over 50 years at 2% return (which is incredibly conservative over that period) would actually only cost £480 a month.

Secondly, to buy half a million quid of whole life cover which would still pay out in fifty years time would cost, over the same period, about the same. Insurance companies aren't charities.