Life Insurance

[thewilltogive]

I’m reviewing my directs debits and looking at my life insurance policies.

To be honest, I’m not sure what I’m paying for, but I assume cover for my mortgage and then critical illness cover - £14.85 and £8.62 respectively.

I’m single with one DS21, who still lives at home and works full time.

I have 23 years remaining on my mortgage and a balance of £97000. No significant savings at present.

Employment T&C’s mean I get 6 months full sick pay and 6 months half pay, and if I die during employment, my son is the beneficiary off 3 x my salary. On that basis, I don’t think I have a lump sum payout to him as part of my life insurance.

I think my question is, do I need critical illness cover? Is there anything else I’m not considering?

Thanks.

Yes you do. If you get critically ill (with cancer for example) how will you pay your mortgage and bills?

i think I would keep it up. It’s pretty cheap and would probably pay out if you were diagnosed with anything in the future. I had a diagnosis of melanoma a few years ago and mine paid out, even though I could carry on working. I suppose the terms may not be the same for yours but you don’t have to be dead or unable to work for it to pay out.

That seems very low for critical illness cover. I’d check what exactly it includes.

Yes, I think it’s probably more that I’m not even sure what I’m covered for, but at least know I’m covered salary/bills-wise for a year.

I definitely need to review my actual policies.

Perhaps I have my policy amounts the wrong way round…

If I had found critical illness cover that cheaply I probably would have got it. I didn't, and I am married, so I do without. But in your position, if you can afford it, it might be best to continue. I would expect that there is a payout - the outstanding mortgage balance, at least? Check that.