Life insurance

[DarkDarkNight]

A question for lone parents - do you have life insurance? I’m 37 and don’t have life insurance, I saw an ad the other day about it being cheaper if I took it out before I’m 40.

It’s one more monthly payment I could do without but also I would like to have something in place to provide for my child in the future. Financially I earn around £26000 and rent privately though I’m hoping to buy in the next couple of years. I have around £3000 on credit cards but could pay it off quite quickly. Is it worth having?

I'm 44 and got life insurance about 5 years ago,I'm unable to work at the moment for health reasons but don't drink smoke drive or have sky etc and roughly have debt the same as yourself,I took out a 20 year plan that would get my dc to adulthood and my sister who would raise them if I died wouldnt have to struggle financially and there be a bit left for dc at end.i pay £16.00 a month for a £100,000 payout.

I would shop around. I'm sure you could get a small policy for a few £. The average cost of a funeral is £5k. If the worst happened who would pay that?

I have life insurance that will pay off my mortgage cover funeral cost and leave the children a cushion.

Jumping on this thread...I am also a Loan parent considering life insurance. I am 44 this year with dc 13 and 16. Have I left it too late?? Who are you with please?

Legal and general.

I have Also written a will. Leaving everything to the children. With my sister as guardian. ( they will of course go to their dad) but she will manage the money/trust. And she has to be involved in decisions.

Any life insurance payments will merely be deducted from any means-tested benefits that you might be entitled to.

I'm a lone parent and while my DS is over 18, he's in no way ready to stand on his own two feet so this is still a concern for me, in fact I've been thinking about it more in Covid time (though I should say that I'm not in any at risk groups). I'm also supporting my parents a little financially. My employer would pay out a lump sum on my death (while I'm still employed by them obviously) but that's all I have - no additional insurance. I rent privately and have no debt. I'm 50. I've always had my head in the sand a bit about this so watching with interest.

I have - no additional insurance.

The 'additional insurance' you have is all the various benefits of the Welfare State. If these are 'means tested' - as many are, then any additional payment made to you from insurance policies, will merely resulted in those benefits being reduced accordingly.

Unfair ? Yes, but that's the way it is.

I'm 24 and a single parent to a 3 year old. Perfectly healthy, young etc. I took out life insurance when me and her dad split up 2 years ago, just in case.

£3.87 a month for a £200k policy, so it doesn't exactly break the bank
The money would go to my sister (or husband if I ever marry) and it registered to pay for any funeral costs or affiliated costs surrounding my death, then everything else into a savings account for when DD is 18.

Always worth having I'd say.

@tanguero

I have - no additional insurance.

The 'additional insurance' you have is all the various benefits of the Welfare State. If these are 'means tested' - as many are, then any additional payment made to you from insurance policies, will merely resulted in those benefits being reduced accordingly.

Unfair ? Yes, but that's the way it is.

I don't understand what you're saying. We're talking about life insurance. What's that go to do with benefits?

@RedPandaMama who is your insurance with please?

In my opinion you should always have life insurance and a Will, it just makes sense.

I pay £6 a month with legal and general for £100k life insurance and i got a £75 cash back deal through quidco so it paid for over a year of premiums itself! I also have critical illness insurance which is more costly at £25 per month but in my eyes its worth it. I work in the NHS and have seen families left with nothing after a loved one passed away so this makes me feel better.

I don't understand what you're saying. We're talking about life insurance. What's that go to do with benefits?

If you ever find that you have to claim any of the numerous benefits of the Welfare State - benefits arising from illness, poverty, death etc. - you will find that they are nearly all 'means-tested', and if you have provided insurance for yourself to cover for life's mishaps, then you will find the State saying, 'you already have money, so you don't need any additional money from the State'.

For example a widow, receiving payments from her deceased husband's life insurance will find this will merely reduce on Housing Benefit, Council Tax Benefit, Universal Credit,. etc. that she might otherwise be entitled to.

I lost my partner 6 years ago. There was no will, no life insurance and we were not married.

I have subsequently taken out a policy which initially was for £120,000 costing £20/month. It is now £150,000 and costs £30/month. I was 46 when I took it out.

I look at it as a reverse lottery ticket.

@Sunny4876 it's with Beagle Street

100% yes yes yes

Single parent here
Vitality
Life assurance of £300k in event of my death.

It’s a priority for me.

Early forties

I’m 33 and unmarried. I got a will done for my 30th birthday and life insurance through my bank shortly after, but swapped it before Christmas. I now pay £10.60 a month for life insurance up to £100k (I don’t own a home or anything) and critical illness cover for me and for DS for the 8 most common critical childhood illnesses (I think.)

I got this new one through an Instagram advert for polly.co.U.K. But the actual policy is with Rpyal London.

@tanguero

I have - no additional insurance.

The 'additional insurance' you have is all the various benefits of the Welfare State. If these are 'means tested' - as many are, then any additional payment made to you from insurance policies, will merely resulted in those benefits being reduced accordingly.

Unfair ? Yes, but that's the way it is.

You don’t seem to understand the purpose of life assurance

The op wouldn’t get the payout
She’d be... dead

The money goes to whomever she appoints as the beneficiary

My children would not be entitled to any benefits. Nor my sister if she was taking them in? The life insurance is payable once I'm dead. So the children have money behind them and cover any associated cost if/when I die.

The policy has no bearing on the benefits currently I receive.

I also plan to take out a funeral plan once I am 50. As I don't want my children. To struggle to find thousands of pounds necessary to bury me.

@tanguero my policy that pays out if I have a critical illness. Will pay my mortgage. I will not have any funds saved so the state would provide with the safety net they provide. But the house would be paid for. If I was dead there are no benefits. Again the house will be paid for. The children will have this in trust.

Thank you for all the replies, very helpful. I feel a bit sick not having anything in place. But also I think critical illness cover would be a good idea, but it will be more costly.

I should have a will in place but I haven’t got anything to leave! if I buy in the future I will definitely get one. I had just assumed my son’s dad would have full custody and vice verse.

Ive just changed employer and am not sure what is in place so I will check that out.