To cancel my life insurance

[ZibbleDibble]

To give a bit of background I am selling my house to move in with my partner and so will no longer have a mortgage. I have a workplace death in service benefit (2x annual salary).

AIBU to cancel my life insurance and critical illness cover? Should I take out income protection insurance instead, in case I fall ill and can’t work?

You won’t have a mortgage, but will your partner? Would you want to pay that off for them on your death - and would your death in service cover it? Would they even get it if not your spouse?

I decided that critical illness cover was still important to me - if I’ve got 6 months to live, I don’t want to worry about council tax payments!

With regards to death in service - if you changed job, could you easily re-start the life insurance? (no conditions that would make it difficult or costly)

With protection insurance, check the cover carefully - my IFA said some would deduct your work sick pay, and if that was good, you actually weren’t getting much for your premium.

In the end I kept my life insurance as it was a low amount for a big payout - it’s just gambling, really.

Income protection insurance is probably a good idea.

Do you have dependants who would need more than 2x your salary, eg kids who aren't yet earning themselves?

If not, I wouldn't bother with life insurance.

The older you get the more expensive it’ll be to get too. If you can afford to keep it keep it!

If you were crippled tomorrow in a road accident, would your partner stay with you? You aren't married. You have no legal claim on his home and he doesn't have any obligation to support you.

If you don't have significant funds to fall back on, I'd keep the critical illness insurance.

Is your life insurance decreasing OP? Has in, is it tracking down in line with your mortgage? If it is, I would look and taking out a level lump sum of Life & CIC if this is affordable for you. I have worked in the mortgage and insurance sector for the last 8 years and I feel it’s always best to have some cover in place if you are able.

If you’re existing cover is a level term, I would leave as it is. I wouldn’t rely too much on your death in service as you may change jobs in the future etc.

Are you buying into his house ? And so name going on the deeds ?

Don't cancel it.

Thanks all. For the sake of £30 odd per month I’m as well just keeping it just in case.