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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Not to have life insurance. Do you?

236 replies

BrilliantBetty · 09/09/2021 21:25

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?

OP posts:
TiddleTaddleTat · 11/09/2021 09:26

@Newmumatlast perhaps you have any health conditions or family history that would have increased the cost? Critical illness is likely to the bulk of that monthly sum.

MurielSpriggs · 11/09/2021 10:48

@Upamountain43

When i got my mortgage you had to have life insurance to cover the mortgage or you could not have one - when did that change?

i do not have it now as i don't need it. i have enough in savings to cover my funeral and own my house outright.

I'm not sure that was ever a rule. The lender's security is the house, that's the point of a mortgage.

I think perhaps financial advisors liked to twist people's arms into getting life insurance, critical illness cover and anything else they could think of along with the loan itself because there's a lot of commission going on those things. That was largely the motivation for the old endowment mortgages.

Xenia · 11/09/2021 10:56

It definitely used to be a rule of some lenders including the 1980s when we first took out a mortgage. I remember we had some basic life insurance before that but had to up it because the building society forced us to do so.

I don't currently have any. I had £2m of cover for a while but stopped it all when the youngest children got to about 15 years old.

PattyPan · 11/09/2021 11:03

When we took out the mortgage in 2019 I think they asked if we had life insurance but they seemed to be ok with my death in service benefit.

gogohm · 11/09/2021 11:24

If you have a mortgage you need life assurance, it's actually written into the mortgage offer usually

Belladonna12 · 11/09/2021 11:48

DH and I have never had it. I have a health condition which would increase the cost and it would be also a lot of hassle to get it (they would probably want to see my medical records). I don't see it as essential as we would get death in service payment from our pensions which would cover the mortgage.

Belladonna12 · 11/09/2021 11:48

@gogohm

If you have a mortgage you need life assurance, it's actually written into the mortgage offer usually
Rubbish.
IceCreamAndCandyfloss · 11/09/2021 11:50

Yes, we have two in place, one to cover the mortgage and one until the children are adults to ensure they have the same standard of living.
With no mortgage or dependents it’s different.

Belladonna12 · 11/09/2021 11:51

@Xenia

It definitely used to be a rule of some lenders including the 1980s when we first took out a mortgage. I remember we had some basic life insurance before that but had to up it because the building society forced us to do so.

I don't currently have any. I had £2m of cover for a while but stopped it all when the youngest children got to about 15 years old.

If it was a repayment mortgage it wasn't a condition of most lenders.
SmokeyDevil · 11/09/2021 11:51

Yep always handy to have just incase. Best to get it when younger, policies are cheaper.

HavelockVetinari · 11/09/2021 11:56

Yes, definitely. It's not cheap, but it would be really tough for DH or me to bring up DC alone without a lot of money.

maddening · 11/09/2021 11:57

Well I always have had life assurance through work for 10x my salary, so paid extra to increase the amount. I get critical illness and accident insurance through work also, much cheaper and less exclusions through work.

PurpleFlower1983 · 11/09/2021 11:58

Yes, and critical illness.

Saz12 · 11/09/2021 12:02

DH has a good death-in-service thing so he doesn’t now: it didn’t seem worth the premiums given the risk.
I have a medical condition so I get turned down.
We have savings and DH could pay the mortgage & scrape by on his salary alone.

scarpa · 11/09/2021 12:17

I have critical illness and income protection, as have been the sole/main earner for a while. Will keep it though even when that's not the case anymore.

Rented house and no DC so no life insurance yet, but I'll get it when we buy a house.

HintofVintagePink · 11/09/2021 12:20

I got a policy when DS, now 8, was born. It’s about £7 a month for a £150k payout. I was 28 when I took it out and no smoking, extreme sports etc so I think that’s a fairly low premium. Runs until I’m 65.

HintofVintagePink · 11/09/2021 12:24

@gogohm

If you have a mortgage you need life assurance, it's actually written into the mortgage offer usually
Incorrect. An interest only mortgage lender is likely to insist you have an approved repayment strategy in place, but not necessarily life insurance.

Repayment mortgage lenders don’t insist on it as a condition of the offer, but you will say you need to have a repayment plan in the event of your death before the end of the mortgage term.

Belladonna12 · 11/09/2021 13:53

Repayment mortgage lenders don’t insist on it as a condition of the offer, but you will say you need to have a repayment plan in the event of your death before the end of the mortgage term.

It's not true that you need a repayment plan in the event of your death. The mortgage provider can sell the house if necessary.

Blossomtoes · 11/09/2021 13:57

We never had it but that was because we both had death in service benefits that would kill the mortgage if either of us died.

WaterBottle123 · 11/09/2021 20:03

My DH died in when I was pregnant with DD2. Thankfully we had life insurance and death in service.

I earn well but I'd still have had a significantly harder and worse life without it since.

Get life insurance FFS

VestaTilley · 11/09/2021 20:08

I have it. I’m 35 and have had it about 8 years. Very important to make provision for your loved ones, particularly any children and to pay off the mortgage (if you have one) in the event of your death.

I only pay £9 a month, so it should be affordable - but it’ll cost more if you’re a heavy smoker or drinker as you’re more likely to die earlier.

It’s not a scam.

sbhydrogen · 11/09/2021 20:10

I'm 32 and I have life insurance. But I have two DDs and a mortgage. If I die, they're sorted for a home plus have lots more to keep them going.

ellenpartridge · 11/09/2021 20:26

Yes a private life insurance policy for me and DH and we both have various work death in service benefits etc

Hopeisnotastrategy · 11/09/2021 20:35

It's very, VERY important to have some life insurance as soon as you have commitments, eg a partner or spouse or dependents such as children. It's very cheap when you are young, and gives a vital element of security to those important to you if the worst should happen. DH and I took out generous life assurance in favour of each other as soon as we decided to marry and take out a joint mortgage. We knew we'd be devastated if anything happened to the other and the last thing we wanted to do was to pile any additional stress and unhappiness on each other at that moment.

If you are on a budget you don't need to spend a fortune, but do get some if you have commitments. It really is so cheap when you are young.

In the last couple of months i have cancelled my life assurance, it was starting to get very pricey in my 60s, but only because at this stage of my life it is far less relevant and by now we would both be fine if anything happens.

Darbs76 · 11/09/2021 20:40

I have a death in service benefit through work so have that and no life insurance (or assurance I believe it’s called). I have a pancreas disease so not likely to get any either

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