Life assurance - do you have it?

[GimmeAy]

I'm currently unemployed but will have no inheritance to leave my dc if God forbid, I was to die.
So today, I signed up for life assurance.
Given pre-existing conditions, it's not such a bad payout £40k in the event of my death for the 28 years I'll be 'insured'. So, up to age 70.
£8/month.
If I get back into employment, I'll double it, which results in double the payout, but at least there would be a little something for dc in the event of my untimely death.

Just wondering whether everyone has this - particularly if you're unemployed?

And second question, if you die, does your private pension go to your children? Or does it go with your death?

And lastly, sorry for all the questions, if I were to die, would my money automatically go to my dc?

I'm not married and never have been.

You need to write a will. It’s not just about money, you can specify guardians for your DC. You need to nominate them as the beneficiaries of your life insurance. Your pension, it depends. Is it an occupational pension or one you’ve said into privately? Occupational pensions will usually pay a pension to your children until they reach a certain age.

It would have been a private pension (company paid in a certain amount, I paid in a certain amount). Though at the time I took it out, I didn't have any dc, have since left the company, and have no idea what the value of the pension currently is (I'd say we're talking a few grand rather than £000000's).

My husband and I have a joint policy which pays out £200k

He’s has a final salary pension and I have a private DC pension - were each other’s beneficiary

We also have death in service benefits attached to our pension - pays out similar to the life insurance.

Sorry - occupational DC pension, not private.

You urgently need to do your will. Just think of the mess if you died and left no instructions re the care of your child? The money would eventually go to your child but without a will there could be all sorts of delays as letters of administration would have to be obtained and possibly solicitors fees paid to sort things out.
Does your life assurance cover death from any cause? I only ask because I have got a 30k one I took out years ago for a low monthly fee, like yours, and it only covers accidental death. I didn't realise this for some time because I just saw the words 'life insurance' and didn't read it thoroughly (I was young and daft).

I'm still waiting on the documents (literally signed up an hour ago), but the one thing it doesn't cover is suicide.
I'm pretty confident it covers death by any other means. Will scrutinise the T&C's when I get them.

Yes, it occurred to me that next on my TO-DO list should be a will. I've nothing of value, similar credit card debt to savings (does your debt die with you or do your savings pay off the debt?).
Sorry for being such a nincompoop.

It is generally good practice to write a life insurance policy into trust (get the form from your insurer) so that the money can be paid out quite quickly to your chosen beneficiaries. If not put into a trust then the claim proceeds would form part of your estate, could cause an inheritance tax liability, and would not be received by the beneficiaries of your Will until probate has been granted. If no Will then distributed as per intestacy rules which may not be as you would wish.

Debts have to be paid out of your estate, so putting life cover in trust will mean the money isn't swallowed up repaying debt.

Yes we have life and critical illness insurance. It means that if one of us dies (or gets critically ill) the mortgage gets paid off and there is a lump sum for the surviving spouse.

My husband's death in service benefits are pretty good. We both have pensions (mine isn't much due to 8 yrs as SAHP).

Op, contact the pension company. You are allowed to indicate a beneficiary if you die before you retire.
This doesn’t overturn a will but will show your intention until you get your will done. Your pension co should offer this as an on-line form, and costs nothing.
There will be a web address on your pension statement. You also need to let them know if you have changed address and or phone number.

Ok, next question - where is cheapest place to get a will? Local solicitors (are they open these days?) or some online will service?

We both have multiple insurances, a decreasing mortgage one to pay the remaining mortgage, a separate police which gives a lump sum and then we both have death in service ones through our employers pension scheme. All together these will ensure our DC are covered for uni/house deposit if one of us is prematurely knocked off our perch. It would also allow the surviving spouse a bit of time of work (probably a year) if they felt they needed to following the others death.
They also ensure that the spouse has a mortgage free house secured

Sunseed - the life assurance company mentioned something like that, but I hadn't a clue what she was talking about.
She said she's emailing me the documents today.
I've 2 separate private pensions.
One with contributions of 8k (euros) approx. with a pension age value of 17.5 k more or less.
The other one is only about 800 pounds.
Now I have the life insurance.
I obviously would want all to go to my dc in the event of my death.
So I'll do whatever that thing is to write it into trust that you mentioned.

AndWhat - sounds like you're well prepared. I'm somewhat impoverished so no mortgage nor anything like that (a property) to pass on.
The thought occurred to me as my Godchild's DM has terminal cancer. She's about 65 I think - she has the cancer associated with working with asbestos - she used to work in a factory where she was exposed to it daily when she was in her early 20's.

My godchild's DD died when she was 1, but I believe he had excellent life assurance and death in service benefits, so they were never left in financial dire straits.

My godchild's DF that should read - I was think Dear Dad when I wrote dd!

*thinking

Jeez I've lost the ability to type.

You can do very straightforward wills cheaply. Are you married, divorced separated, single? If things are a bit complicated, then there's a fantastic MNetter who does wills.

Single. Things are slightly complicated, but I've never been married (nor am I likely to be at my ripe old age lol).

What does the putting it in trust mean exactly @Sunseed

Would you mind if you have the time, explaining that to me a little bit?

DC are teens. - soon to be adults.

As for naming an executor - I would trust one of my best friends - one of the dc's godmothers. But she lives in Ireland, I'm in the UK. Otherwise my dbro, but he lives on another continent. Do they need to sign the will or have any involvement or do I just ask them whether they wouldn't mind being executor?