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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be concerned that I nor DH have life insurance

60 replies

CheeseFiend36 · 09/01/2017 15:12

Husband and I are both early 30s with one DS under the age of 1, and a mortgage.

It's come up in conversation a few times with different friends when just nattering about household bills that they have life insurance and in some cases mortgage insurance (is this PPI or something different?)

Are these definitely something we should be getting now we have a child and a mortgage? When did posters here start, and how did you go about finding the best one for you?

I feel like need to book an appt with an IFA as both DH and I are really clueless about things like this and are starting to worry about retirement already

OP posts:
Rh204 · 09/01/2017 17:40

Life insurance is important but not as important as income protection (like sick pay forever) and critical illness insurance (you are more likely to get cancer etc than die - a fact don't be offended) i have only read the original post nothing else so maybe this has already been said. Budget for decent cover do not buy it online, you do not need an IFA if your bank offers a financial planning service use them. Do not even factor in death in service- it is discretionary and doesnt always pay out 100% if what you COULD get and plus during your mortgage term you could get a different job which doesnt have death in service etc so dont rely on it. Good luck sorting it but yes it is massively important, you do not want to be dragging yourself to work whilst going through chemo coz you need to pay the mortgage. Yes I work in a bank and I am a mortgage advisor so i am being blunt from personal and professional experience.

DragonMamma · 09/01/2017 17:41

We are insuranced up to the hilt too.

DH has critical illness and life insurance which is on a level term and would cover the mortgage and more.

I have death in service benefit and my CI and life insurance have just lapsed so I'll be sorting those again asap and getting a policy that takes me way beyond 50 (when it gets more expensive).

We both have accident, sickness and unemployment cover. Which pays out a fixed sum for 12 months and saved our bacon when DH was made redundant as we have zero savings.

Araminta99 · 09/01/2017 17:52

I would urge everyone with pets to ensure they make a will that ensures the pets are cared for leaving some money towards their food and possible vets bills, and stating who will take over their care in the event of your and your spouse's death. Many people don't include this or consider that they and their spouse may die together, leaving pets without a home.

My DH and I made wills and got life insurance as soon as we got married. As we are mid twenties with no major health problems we got it very cheap, £19 a month for both of us for 42 years of cover, which will take us up to our pension. DH also gets 5 x salary with his work.

I urge everyone to do it as early as they can as the younger they are the cheaper it is.

Pengweng · 09/01/2017 17:55

We had to have life insurance as part of our mortgage agreement. We got individual cover rather than joint so that if we both died at the same time the kids would get the mortgage paid off and then the same amount again rather than just one sum. DH also has critical illness cover so that we could still pay the mortgage if he was sick.

FarAwayHills · 09/01/2017 18:00

Even if you have death in service I would still look at additional life cover and critical illness cover. There is no guarantee that you will remain with your current employers for the term of your mortgage and if you look to take cover out at a later date it will be more expensive. Having your own cover gives you extra protection and flexibility. Also can consider for each of you how life would be in the following situations - death, long term sickness and absence from work, diagnosis of a serious illness or disability, redundancy. These things are really difficult but important to consider while you have a mortgage and children.

CurlsandCurves · 09/01/2017 18:20

The other thing to consider is cover for your child if they become ill.

My nephew has leukaemia and on diagnosis his parents were able to claim a decent lump sum which really helped them out.

HermioneWoozle · 09/01/2017 18:29

There is no guarantee that you will remain with your current employers for the term of your mortgage

No, but all employers I've worked for have offered it as a benefit.

Also can consider for each of you how life would be in the following situations - death, long term sickness and absence from work, diagnosis of a serious illness or disability, redundancy.

Fucked, is what most people would be. Most people haven't any money to spare to provide for these things.

StarkintheSouth · 09/01/2017 18:46

We've just got a will and Life insurance sorted! We bought our house in 2015 and DD arrived Oct 2016 and it was her impending birth that made us get a wriggle on and organise it. Was boring but I feel so much better knowing if anything happens to one or both of us our DD will be taken care of. We used a will writing service (was a work benefit) and that was a couple hundred quid. Insurance depends on the policy and what your budget is, but we were told to get 2 separate policies as that's 2 payouts instead of one should (God Forbid) something happen to both of us.
So YANBU - just crack on and get that peace of mind.

loinnir · 09/01/2017 18:59

Many years ago when we had our first child we each took out Term Insurance as we couldn't afford full life insurance. It was much cheaper and finishes when we are 65.

greenfolder · 09/01/2017 19:31

If nothing else get life insurance. Cheap as chips at your ages.

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