To cancel or lower life insurance payments?

[Acunningruse]

DH and I are struggling financially at the moment. Combination of having to reduce hours at work, some unexpected bills/large purchases and general cost if living.

We are currently spending £100 on life insurance (combination of life insurance, critical illness, income protection). We are both early 40s, 2 kids, non smokers, no health conditions.

Interested to know what other people pay and WWYD in our situation?

Do you have a mortgage? I thought it was a condition. (I just googled this, not legal requirement but some company's do require it)

But ignoring that, I wouldn't cancel it. My mum passed in a rta when I was 6. Life insurance ensured my dad could pay the mortgage off. You never know what will happen in life and if anything were to happen its one less thing to have to worry about

keep it, if you stop and try and go back, it will cost hugely more. You have children, you are responsible for planning their care if you are not there, or are too ill to work

Absolutely do not cancel, can you imagine if the worst happened a few months later? Your financial situation now would seem like a dream. Cut down in other areas. We pay almost as much for no income protection, but it depends on so many factors, including amount of coverage. Saying that, if you have good sick pay you could possibly consider cutting down on income protection/critical illness, but seek advice on that first. It might make minimal difference to payments but a huge difference if something happened.

What’s your death in service and what’s your company sick pay policy?

Thank you all

@Chester23 I am so sorry you lost your mum at such a young age that must have been devastating.

We both work for local authorities now so get 6 months sick pay so yes I agree income protection may be worth reconsidering although thats only £16 a month out of the rest.

I would definitely retain the life insurance, unless you have this cover from the local authority you work for.

If anything happens to you, could your partner pay the mortgage etc and vice versa and if anything happened to both of you, are there funds to ensure your children will be ok.

£100 for you both or £100 each?
That seems good value.

I would try very hard to cut elsewhere first - even on fun things. Hobbies? Second car?

When I was a child, a friend's father was in a coma for four years before finally dying. Income protection meant their family survived and could cover their basic costs that prior to a life insurance payout after death.

£100 for both...