To be 42 with kids no life ins?

[ididabigfatsmelly]

As above in title

just asked my sister her thoughts and she said well I don’t work so does it matter? Which got me thinking as I’m clueless.. I don’t work no, my husband does as I’m home with kids as no childcare..

Yes, the header says 'no kids, no life' then a subsequent post says Is it bad that I’m 42 with no kids and no life insurance set up?
Then another post says 8 and 5

Hence the confusion!

Unfortunately I’ve had several friends die and leave young children over the last 10 years. Here’s what you need to think about.

In the immediate aftermath how is he paying the mortgage?. Will he need to take a leave of absence or give up work for a bit to care for the kids. He might have to go part time so he could do school runs etc.

Who is doing child care if you aren’t there, will it need to be paid?

Will the kids need therapy?

How will he pay for your funeral they are between £1500-£10k depends on what you have?

Will he need a cleaner?

Do you want to leave some money to your children for their futures?

Does your husband have insurance, because it’ll be even more catastrophic for you if he passed away as you don’t work.

Also think about the catastrophic scenario that you both die say in an accident. Do you have wills, guardianships sorted and leaving money for the kids to be cared for. I know it’s horrible to think about but as they are so little it’s essential you do.

It's no wonder you haven't sorted insurance if you can't decide if your kids exist or not

Yes, we have life insurance. Both of us. We have a policy with very good cover in place until the youngest will be independent...can't remember the details, maybe 22 years old? So that the surviving spouse can live and support the children through education while taking time off if needed.

We also have another policy that's less cover and a lot cheaper for a longer term. It's basically to replace an income as the surviving spouse would be left living alone on one income (and probably need time off to grieve).

The majority of adults ages 25 - 55 in the uk have life insurance.

I don’t think that’s true

Yes you should have life insurance. God forbid something happened you and your dh at the same or similar times.

If you don't own your home then I would worry less about life insurance (you usually have to take it out when you buy a house so that the mortgage is covered if the worst happens) and worry a lot more about getting a job and pension. Your child is now 5 so with breakfast club and afternoon club you can work full time if you want and start ploughing money into your pension. How healthy is your husband's pension?

Since you are not earning, there’s no financial loss if you die. But your husband would need to pay a nanny and housekeeper? So may be worth getting some, which if you don’t earn he can pay for. It will take about 30 minutes I should think, and mine costs £14.95 a month.

Personally I’d say to at least look into it.
I only pay £10 a month, Due to a life long medical condition, life insurance was limited for me, managed to get one that pays out 35,000 if I die before I’m 85. Which how my body fails me nowadays won’t be a problem. It’s enough to cover my funeral/cremation, pay any outstanding bills and give the kids some sort of inheritance. DP, has a 400k one before he’s 90. so kids will be pretty covered. He’s also got inheritance still left from his father, if he hasn’t used that by then.
my dc are 18 & 13

When I was a SAHP with 3 young children we realised that I needed more Life Insurance than DH did. He at least had Death In Service through employment. If I died he reckoned he would need nannies, cleaners, a gardener, a cook etc

I have life insurance.

It’s not for very much but as a single parent I do not want my DCs having to worry about covering funeral costs etc.
I also don’t own my own home so there’s no inheritance etc.

My policy also lets me take it out early if I get a terminal illness.

Why would he need a nanny, cook and cleaners etc?
That’s odd.

Another post like this. I’m not sure if it’s serious or not.

Why would DH need a nanny and a housekeeper??

Would OP not need these too?
Why would either of them need it?

To cover the things I did while he was at work?

Yes I have life insurance to protect my DH and DC from the the financial shock of me dying and losing my income

I think its a good idea to have. It means your dc have financial stability if the worst happens.

I have life insurance cover for £450k. Took it out after having my kids. My husband has a job which would make it very difficult for him to get childcare for so the idea is that it would fund paying off the mortgage, my missing income and a live in nanny.

Pure life cover is very cheap to obtain even at 42. You and your partner should both have cover to make things easier in the event of either of you dying before your time. You should definitely ensure any mortgage is automatically paid off on the death of either of you.

It depends how well your DH earns and what he has in savings. If he has enough to pay funeral costs up front and there is enough disposable income to cover childcare costs if needed, they will be fine. If not, you need life insurance.

She’s generally right - insurance is to fill the monetary gap that would be left behind by death. So if your husband died the insurance would cover what his wage etc did so you didn’t lose the house etc. If you don’t work what are you trying to cover for monetarily?

Well why not get some?

Childcare? Wrap around school clubs?

Going from a household with a SAHP to a household with a single working parent would have a different budget - assuming benefits wouldn’t cover all childcare costs?

If you have kids, you both need life insurance. Him so that you can pay the rent if he dies and you lose your only household income. As a SAHM, you need it, because if you die, he will need to cover the cost of childcare.

I’m sure he’d cope, just like you would if he died and needed to get a job.

Most families have both parents working FT. And obviously single parents work FT too.

None of them have nannies, cleaners, a cook etc that’s just ridiculous sorry.

So out of interest, all of these 400k coverages, I assume they are taken into account by IHT?

I own my home, earn to live and have a will. My kid is older (about to start Uni) and will already need to pay IHT, so why would I want to add more by spending out every month just in case? I get it if you have a lot of debt/mortgage and lots of kids under 5 and both work in jobs out of the house that are high risk, but I don't think "most people" in UK have a specific life insurance policy that they pay into along side house insurance. Most are spending any extra on BUPA or similar to skip NHS queues or making a Will.