Page 7 | Not to have life insurance. Do you?

BrilliantBetty · 2021-09-09T20:25:38+00:00

Do most people have life insurance? Even if you're young-ish? I've always thought it was some sort of money making thing that's a bit of a scam maybe. But i'm getting more and more adverts for it and beginning to think perhaps I should get it. Is it something most people have?

SloopB · 10/09/2021 08:02

Death in service is generally useless unless you die very suddenly. Most people will get something like cancer and won't be employed at the time of their death. If you have any dependents then yes you really do need life insurance or you leave a giant mess behind you. DH are both ensured for the mortgage and then 5 years worth of salary. If I died DH would need to replace me with full time live in help and that's not cheap!

TiddleTaddleTat · 10/09/2021 08:07

S*toop
*
Death in service was v valuable for my family - 2 close relatives both with cancer, still working, death was not sudden (max 3 months from diagnosis), payouts were prompt and significant for us. Definitely worth having a good DIS package.

OP, definitely worth buying a life assurance policy while you are young. It's cheap as chips and is peace of mind.

saraclara · 10/09/2021 08:17

@TiddleTaddleTat

S*toop * Death in service was v valuable for my family - 2 close relatives both with cancer, still working, death was not sudden (max 3 months from diagnosis), payouts were prompt and significant for us. Definitely worth having a good DIS package.

OP, definitely worth buying a life assurance policy while you are young. It's cheap as chips and is peace of mind.

Three months is quick for cancer. And unusual. My husband was two years from diagnosis to death. So no DIS.

It bothers me that DIS gives people a false sense of security

TiddleTaddleTat · 10/09/2021 08:22

@saraclara really sorry to hear you lost your husband. And that no payout was provided. I didn't know there was a time limit, I suppose the companies/organisations will find a way to get out of paying where they can. Yes 3 months was mercifully quick from diagnosis I suppose. In my mother's case it was 6 weeks. The money was life changing for me and my siblings who were able to buy properties with the combined DIS payoiuts, hopefully we spent the money carefully and well.

OhRene · 10/09/2021 08:22

Other than some part time jobs I've been a sahm since starting having kids 14 years ago. Due to a parent getting £20K in debt in my name because silly, very young me didn't realise the gravity of the guarantor forms for the family business and the fact my parents have tens of thousands in assets alone (half a dozen cars, a motorbike, couple of rarely if ever used new quad bikes, horse trailers plus much more which parents assured me would be sold if they couldn't repay the loans)
And as such, me buying a house was never on the cards. Getting a job and having my wages garnished, paying back someone else's debt and essentially working partially for free.

As a direct result, I have nothing to leave my kids. Life insurance will give them breathing space. My critical illness cover is a must have too. I recently watch my dad die early of cancer and if his work hadn't have gone out of their way to give him the maximum they could get away with (on the say so of the CEO) my dad would have struggled financially, especially as his wife had to take a good two or three hours a day away from work to take him to chemo and radiotherapy.

FireworkParrot · 10/09/2021 08:30

We have life insurance (I'm mid 30s) which we got when we bought our first house. DH and I also have 4 x salary death in service benefit but haven't got critical illness cover. Tbh I do think we need to sort out the critical illness policy but just can't seem to find the money at the moment with childcare costs so plan to sort it next year when DD2 gets 30hrs childcare funding.

Cirin · 10/09/2021 08:32

You get it when you have people whom you want to have money if you die.

If you don't have any dependents, then no you don't really need it.

But you leave it for your partner and children. People who could be hit very hard financially by your loss.

AJB3001 · 10/09/2021 08:41

I didn't until I got sepsis in my second pregnancy and almost died. The thought that I would leave my OH and little boy with everything to sort and that he wouldn't be able to take any time off work as he is self employed terrified me. I want to know that should something happen it is as easy on them as possible to get sorted and be in a good place financially so they can focus on making a new life.

SaintVal · 10/09/2021 08:42

I get death in service through work so I have a decreasing life policy attached to my mortgage (so if I die the mortgage gets repaid but nothing more) together with critical illness cover.

idontlikealdi · 10/09/2021 08:51

Yes and death in service and critical illness cover - always been part of my benefits package.

I do have my own private life insurance policy in case I change jobs / develop a condition etc

Dandy0911 · 10/09/2021 09:04

If you have children, please please get it.

I've had countless times where a relative / son / daughter has called in as they've found paperwork for a life insurance application and it's been cancelled and/or it was never taken up.

(I work in life insurance industry and have done for 7 years.)

The older you get = the more expensive it is.

Death In Service will only cover you for the time you're employed. If you decide to retire at 60/70 and want insurance it will be triple the price.

I personally, think it's really important.

Willyoujustbequiet · 10/09/2021 09:13

Yes of course. If you can get insured you must especially if you are a parent.

I've got life cover and critical illness on my mortgage and a stand alone life policy with lower critical illness. All in all probably about £300, 000 but my mortgage is near paid off anyway.

I still don't think that's enough so I'm not sure how people sleep at night if they don't have any cover tbh.

Babamamananarama · 10/09/2021 09:26

PLEASE PLEASE PLEASE get life insurance!!

We didn't - were too skint when we bought our first flat. 7 years and two kids later I tried to organise life insurance and critical illness cover when we were selling/buying our new place. Never got it over the line because my first application got rejected over an A and E visit and then DH grumbled about the cost and wanted to find a cheaper option....

4 months later I was diagnosed with aggressive lymphoma. We aren't covered. I now can't get life insurance. My income has been desecrated this year. I am so cross with myself for not getting it sorted. I am so so worried about what will happen if I die.

Hiyawotcha · 10/09/2021 09:35

I also have death in service through work, but have never really incorporated it in my assessment of finances if I was to die, for the very reasons that have been raised above - much more likely to die out of employment. It’s a “run over by a bus” bonus for the children rather than something relied upon in the calculations of potential need.

Juno231 · 10/09/2021 09:37

Yup, through work. If I didn't I'd get a private one.

My childhood friend's husband died in June at age 33 in his sleep. Now she's left with a kid, another one on the way and a mortgage with no way of paying for it all. Certainly re-emphasized the need for life insurance to me!

Hiyawotcha · 10/09/2021 09:39

@Babamamananarama

PLEASE PLEASE PLEASE get life insurance!!

We didn't - were too skint when we bought our first flat. 7 years and two kids later I tried to organise life insurance and critical illness cover when we were selling/buying our new place. Never got it over the line because my first application got rejected over an A and E visit and then DH grumbled about the cost and wanted to find a cheaper option....

4 months later I was diagnosed with aggressive lymphoma. We aren't covered. I now can't get life insurance. My income has been desecrated this year. I am so cross with myself for not getting it sorted. I am so so worried about what will happen if I die.

I’m so sorry Babamamananarama.

Your post highlights exactly why it’s needed - you’ve got enough to worry about without having to think of finances.

I have a dear friend in a similar position right now.

FuckingFabulous · 10/09/2021 10:01

We have two. One to pay off the mortgage if either of us die and a £300k life insurance policy each in case either of us die before age 79. It goes to the surviving spouse or is split three ways between the children.

ChristmasCocktail · 10/09/2021 10:02

No, they won't give me life insurance. Apparently having chronic illnesses and dentures makes me a liability.. I'm only 30!

tootiredtospeak · 10/09/2021 10:13

Yes I have a joint decreasing term policy with my DP that would pay off the mortgage if either of us dies. Also we have death in service at work which is 10 x salary and criticall illness cover and personal accident cover through work al in 20 a month which is worth it to me.

SisyphusDad · 10/09/2021 10:27

Essential if you have dependents. My wife died several years ago and the money has made things a lot easier.

CantChatNow · 10/09/2021 10:34

Yes we have cover for our mortgage if one of us died or became critically ill/ My husband also has extra policies to cover me for a few years if he died and income protection as he earns quite a lot more than me. I hope it is a waste of money tbh but couldn't countenance the idea of one of us dying and leaving the other in a financial state on top of everything else they'd have to deal with. If we still have a mortgage when our youngest has moved out and is standing on their own two feet then we'll probably just drop it to cover whatever is left on the mortgage, if we are mortgage free (should be!) then we will go without at that point.

user908768543 · 10/09/2021 10:35

Anyone relying solely on death benefits through work I'd reconsider, if you ever choose to leave that job you will be in a position of needing to sort your own at a later date and with each year that passes you're one year older increasing your risk or could develop a new condition that will make insurance more costly or worst still, unobtainable.

DH and I have always had death benefits through work but have never thought to rely on them alone, or at all actually, we class them as an added bonus to what we have in place privately.

NavigatingAdolescence · 10/09/2021 10:36

@user908768543

Anyone relying solely on death benefits through work I'd reconsider, if you ever choose to leave that job you will be in a position of needing to sort your own at a later date and with each year that passes you're one year older increasing your risk or could develop a new condition that will make insurance more costly or worst still, unobtainable.

DH and I have always had death benefits through work but have never thought to rely on them alone, or at all actually, we class them as an added bonus to what we have in place privately.

Absolutely. You can also lose your job through sickness, which is an additional risk.

CantChatNow · 10/09/2021 10:38

And yes I also have death in service through my pension but I count it as a nice to have rather than something to cover major costs.

MatildaIThink · 10/09/2021 10:40

Yes I do, I have had it since I bought my first house and now with a husband and children I would not want them to have any financial difficulties should something happen, when they would be going through a bad enough time as it is.

If either myself or my husband died the life insurance would pay off the mortgage and be the equivalent of around ten years income, as we have separate policies, both with critical illness etc. on top. That would mean that should the worst happen at least the surviving partner, or children, would not have to worry about money.