To think if you have children you should have life insurance?

[JustAnotherManicMummy]

Just to be clear I am talking about people who can get cover and who have an income/lifestyle to potect but who choose not to spend a few quid per month protecting their family should they die (ie not people with conditions that mean they can't get cover/those without a spare penny and who really do live on the breadline etc)

I am confused as to why someone would insure their car/possessions but not their family's livelyhood?

I work in finance so I find it easy to speak plainly about this - but also because I have seen the consequences of people not taking out cover and something terrible happening. It is heartbreaking.

I can give you an example of what I'm talking about: BIL's wife is from overseas. She is not entitled to claim any benefits and does not work (can't get a job where she lives and needs to look after their pre-school DD). He owns a property which is mortgaged. He will not take out life insurance, despite the fact he is the sole provider for that family and if he died there would be less than £10,000 for his wife and child to live off after his debt has been repaid. I think he is irresponsible.

So, AIBU?

I have started to wonder whether I am being ripped off now...

Angry - me too .

It would appear for the amount we're paying we could pay off mortgage, get a lump sum AND monthly payments

angry and alfa if your policies include critical illness they may not be that expensive relatively speaking.

If you are smokers you will be paying roughly twice what a non-smoker will (IME)

My Dh was earning a lot, then he had a paycut of over 60%.....we have a nice house that we don't want to leave and thanks to a tracker mortgage we don't have to...but our choice is as simple as pay bills and eat or have life insurance.

well - they see expensie when there are people on this thread saying they pay much less than us - for more cover

Yes alfa I can appreciate that. Was just pondering aloud really

ahh well - if one of us snuffs it then the other will have to go out to work as it is, nowt we can do about that - certainly can't afford to increase cover for any extra on top of the mortgage or monthly payments right now.

Unfortunately I have 3 children that seem to insist on being fed on a daily basis

Right, I've caught up with the thread.

There seem to be a number of people under the impression that I might be suggesting people buy life cover instead of food/paying the bills or where there are large sums of money to be inheirited. Um, no that's not my opinion. Apologies if my OP was ambiguous on this point!

I have had clients where my advisor (who I was the line manager for) was getting a hard time about not selling cover to... when it was not appropriate for that client to take the cover (affordability/uninsurable/multiple exclusions/high value unmortgaged assets etc) and I took the flak for that - because it has to be about client need, not targets. But equally I would have given him a rollocking if any client had left that office with no cover and thousands of pounds of debt and a family to support and had not been made aware of the consequences.

I can just afford the mortgage as long as there is not life insurance I would do it again as otherwise I would not be able to buy a house for a long time and if I had died before getting the house my kids would still have had nothing.

This way my kids get to live in a good house and if I have to scrimp for a year then it is worth it as my kids are young now and don't notice and we have no choice but to make do on one wage for now but in two years I will be able to go back to work and then I assure you we will be a lot better off than the average family.

If I had not of made the decision to get the house without life insurance and had died my poor dc would have exactly the same as they would have now without life insurance. The only difference is I will now be able to give my dc a much better life providing I live of course which being 21 I have a good chance of .

I believe in my circumstances I made the right choice and if I do die now my kids will have more because my house is one of the few that has gained value.

but slushy -what happens if you DO die - what will happen to the house - who will pay the mortgage, pay for the childcare etc etc??

I had forgotten that added into my critical illness insurance is a policy for extended coverage for cancer treatment. I got it when my mother had breast cancer two years ago. It's a very good thing that I did too, because I just tested positive for the BRCA-1 mutation I wouldn't qualify for the coverage now.

That adds a bunch to my premium bit I can't see fit to get rid of it.

'I can just afford the mortgage as long as there is not life insurance I would do it again as otherwise I would not be able to buy a house for a long time and if I had died before getting the house my kids would still have had nothing.'

You're 21?! FGS, why the rush, especially when it's obviously over-stretched you and, quite honestly, you can't afford it because if any minor financial curveball came your way you wouldn't be able to pay for it.

I have to say - yes I've argued for those that don't have life insurance due to cost - and no our life insurances isn't that great (will only pay off mortgage and nothing else)

But I also agree that it's insane to have a mortgage that you're barely managing to pay - and no life insurance at all.

I dont have life insurance. I have a small death in service grant of 3 x my small salary and an accidental death cover with my bank account. But no life insurance.

I have 2 small children. I live in a council house. If I were to die my ex husband could claim for the house as the living parent of the residing children. This is more likely to happen with our council if he has no savings/inheritance. (otherwise they will say privately rent etc) So I dont need life insurance for a mortgaged property/anywhere to live for the children.

I could put some aside each month for their future (i.e. trust till they are 21) but at the moment I prefer to spend the money I have on them now. In a couple of years time when I'm not paying out the first 20% of childcare than I may reevaluate it and look into it.

IMO YABU - different things are different priorities for different people

exactly - not every family needs life insurance

I have a genuine question, though, slushy: did the bank lend you the amount of the DP's projected salary, that is, based on what he was supposed to be earning 6 months down the line?

we don't even smoke!

It does include critical illness cover though and something that pays out if any of the children are critically ill (my daughter is severely disabled, so It may be to do with this)

It is fixed for 5 years I have 4 years left so my interest is unlikely to go up before I have a job and double income. I could not get life insurance without a mortgage but my dp's work give enough in event of death to pay half the mortgage.

I had only a chance to get a house and after christmas I will be getting life insurance due to increase in tax credits as we have just had a baby. So I only put it off a year and now once christmas is over we will already be 300 pound a month better off and able to afford insurance and get ourselves straight so it has all worked out well providing I don't die in the next week as that is when we will be able to afford it.

But if I had of died before mortgage my kids would have not had anything as we could not get insurance without a mortgage for some reason.

DN's DH passed away in June this year at age 39. Didn't smoke didn't drink , 3 small children who were the light of his life. His family and his job were his whole life. They spend 15 months of hell trying everything possible to find a cure for the dreaded C that he had. What they didn't have to worry about was money. Had plenty of income protection and life insurance, which also provided a nanny who has just finished her term in job this week. The problem is people don't like to pay money for something they can't see. Again I agree with JAMM we are not talking about people with exceptional circumstances but people who will spend a fortune on plastic junk for their children when if they cut down just a little bit they could well afford a small amount of income protection and life insurance.

I haven't read every page, just the first and last. While I have appointed legal guardians in the event of something happening to me, and despite being on a very limited income (benefits due to disability) I have no access to life insurance as my epilepsy basically bars me from it as it is so severe, and if I died due to my epilepsy (Sudep is a very real risk in my case, I am in all the risk groups for it), even if i could get/afford life insurance, they wouldn't pay out for the one thing that I am most likely to die from. The fact that I carry the breast cancer gene (was tested and am trying to persuade my PCT to do a preventative mastectomy, they're refusing as I'm only 28...my mum first had breast cancer at 27....)also bumps up my premiums to an eyewatering (lowest quote) £320 per month.....

As an addition, if anyone knows where I could actually get affordable (My contents insurance is £10 a month from Lloyds, could do about £25 a month for life insurance) life cover that will cover me in these circumstances, I'd be happy to know...!!!