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Original poster

What made you decide to get life insurance?

35 replies

EvaJones · 18/02/2019 17:03

I'm considering getting life insurance, but I was just curious as to the reasons why others have decided to take out a life insurance policy.

Also would love to know the reasons why you haven't got it if you've decided not to take out a policy yet!

Thank you in advance for your help!

OP posts:
Sunseed · 18/02/2019 18:21

I got it to cover the mortgage debt plus an additional sum to ensure my DH and children would be adequately provided for if I died. Critical illness cover to clear mortgage and provide for me if I didn't die but had serious condition diagnosed. DH had similar policies. Proved to be our best investment ever when we claimed on his CI cover when he had cancer.

Youmadorwhat · 18/02/2019 18:28

Don’t you usually have to have life insurance with your mortgage?? We did! Anyway the main reason we took out life insurance was after we had children.

Sunseed · 18/02/2019 19:02

Youmad It's not compulsory but generally strongly recommended, particularly if there is more than one borrower or if there are other occupants of the house who could be homeless if mortgage payments are in default.

Decormad38 · 18/02/2019 19:07

My mortgage broker!

itsboiledeggsagain · 18/02/2019 19:17

Because we are 40 and in really good health. It seemed like a bargain suddenly.

We have death in service benefit from work which would cover the mortgage if we died.

notanothernam · 18/02/2019 19:17

As soon as we had a child (bought a house after having children).

StrongTeaDropOfMilkNoSugar · 18/02/2019 20:03

We wanted cover for the mortgage in case anything happened to either of us. DH was diagnosed with cancer last year and we were able to claim on the critical illness element of the policy, which was a real comfort at a difficult time.

rosesarered9 · 18/02/2019 20:06

Don’t you usually have to have life insurance with your mortgage??

You have to have mortgage life insurance, which is different to normal life insurance.

Sunseed · 18/02/2019 20:57

Roses - life insurance is not compulsory as a condition of taking out a mortgage, though many mortgage brokers strongly (and quite rightly) recommend it.

There is no difference between "mortgage" life insurance and "normal" life insurance as they both cover the same risks of dying. You may be thinking of the difference between a Decreasing Term which is often used to cover a repayment mortgage, and a Level Term which would be more appropriate for an interest only mortgage or where there is both a repayment mortgage plus dependents to be considered.

Candidsugar · 18/02/2019 20:59

Having children, so in the event of death at least the house would be paid for.

Ditto66 · 18/02/2019 22:33

I thought we had life insurance to cover the mortgage if one of us died. We didn't... one of us died. I have life insurance and critical illness now, the former for my kids and the latter so I don't need to worry about money if the worst happens. Never thought I'd be a cautionary tale.

notanothernam · 18/02/2019 22:37

We had life insurance after kids before mortgage, that was to help raise him/them if one of us died, then after getting a mortgage we got a decreasing term one as well, because it's no good just paying the mortgage off, we wanted a policy to help raise the children too as we'd be down a salary. Also, if we both die, our guardians will need a good chunk money to raise them, so mortgage paid x 2 plus 2 x payouts (got a will obviously).

lovefriday · 19/02/2019 07:17

What notanotherman said...

Also meaning to get critical illness - 6x more likely to need this at our stage in life (mid 40s) than life insurance. Apparently...

CallMeSirShotsFired · 19/02/2019 07:29

Also would love to know the reasons why you haven't got it if you've decided not to take out a policy yet!

No kids, single homeowner, no need. If I popped my clogs tomorrow, then my estate gets wound up as per my Will and if there wasn't enough to pay off the mortgage, tough luck to the bank.

(As it was, the house appreciated past what I owed almost immediately so that's never been the case, plus all my other savings and investments, so the bank + all my beneficiaries are sorted)

LooksLikeImStuckHere · 19/02/2019 07:33

Moving to a bigger house. If DH died there is no way I could pay the mortgage by myself, even going back to work full time. In the previous house I could have done so we didn’t feel it was worth the additional payments at that point.

kimlo · 19/02/2019 07:41

I haven't got around to it yet. But my friend died with a mortgage, no will and wasn't yet married, and no insurence.

Turns out thats a big mess to be in.

T

chumbabum · 19/02/2019 08:40

My cousin died and left his wife and 2yo behind, no insurance, nothing. She's struggled on her own ever since.

If that mortgage had been paid off then she would've been ok.

So I made sure I have it.

notanothernam · 19/02/2019 08:44

@lovefriday yes absolutely and that's where it starts getting pricier! I have income protection too, my husband can't get cover for that though due to his job.

pepperjack · 19/02/2019 08:52

My husband was in hospital for 3 weeks with an undiagnosed illness. He was convinced he was dying, he made me find the cheapest quickest online cover!
Because of the hospital visit, he then had to have a medical, took months to approve it.
When he died in an accident years later, it meant that we could stay in the house, Ds could stay at his school, I didn't have to worry about work.
I can't imagine worrying about that stuff when you are grieving and trying to hold it all together.

user1471426142 · 19/02/2019 09:20

It was important for me that if one of us died we could stay in the house and cover childcare on one income. My husband is the higher earner. If I died, my husband would need to get a nanny to carry on working. If he died, I couldn’t afford the mortgage on my salary let alone childcare etc. We also wanted insurance to cover private education as that is something we might be able to stretch to later with both of us earning but not with just one.

If both of us died, we wanted to make sure the children were set up and there was money for family members to look after them and not struggle financially.

ColdAsIceCubes · 19/02/2019 09:34

My neighbour passed away very suddenly at 38, and didn’t have life insurance. Watching the family struggle since their passing solidified for me (my dh had life insurance already) that if I was to pass first and suddenly my dh would struggle financially.

Auntiepatricia · 19/02/2019 09:37

Both DH and I can singlehandedly afford our mortgage/childcare/living expenses so we haven’t got it. I guess the only thing it might give us is the ability not to work for a while.

notanothernam · 19/02/2019 09:39

@Auntiepatricia surely your lifestyle would be diminished though, if your income was the halve?

notanothernam · 19/02/2019 09:40

*was to

Murinae · 19/02/2019 09:40

My dad died at 37 leaving my Mum struggling for years. We had to move in with my grandparents and the three (mum, me, sister) of us all had to sleep in one room. I made sure when I was pregnant that we got life insurance which has now paid out. Now we don’t have any but that’s ok as the mortgage is paid off, the kids are adults and I work full time with a decent wage of my own.