UKC

Hi, I need the UKC collective opinion. I currently have life insurance and critical health. But I stopped working recently to be a full time parent. My husband has life insurance. What are the pros and done of me keeping my life insurance policy. We need to save money, and I'm wondering if its worth me keeping it as I'm not effectively worth anything if I die. Any thoughts appreciated, I'm rubbish at stuff like this. A

In reply to alj: I'm no expert or have life insurance due to having no dependant but presumably the problem is that if you died you husband would have to either give up work to care for the kids or pay someone to do it.

In reply to Andy DB: yeh - agreed... Madame Ferret is insured as if something happened to her I would have a lot of very expensive childcare to pay for to allow me to continue earning my crust to support myself and the kids.... so for me working, and Madame Ferret as child carer we are both insured for different sums.... her for enough to allow me to pay for a lot of childcare... me for enough that she can continue to live largely as she does now for the foreseeable should I pop me clogs.

In reply to alj: one other thought - Life Insurance rates get higher as you get older... if you already have a policy in place its probably (check!) cheaper to keepo it than it is to cancel it and start a new one again in a few years when they will risk asses you at your new age.
I guess thats driven by them expecting a certain number of policyholders to cancel early in policies which reduces their risk... so their risk on a 20 year old actually still having the policy in place at 40 or 50 when dire medical stuff starts becoming more slightly more likely is lower than say a 40 year old, taking out a new policy to see them to the age of 50. End point and risk the same but chances of you being a policyholder at the critical time far higher in the second scenario so price higher.

So although you may save a few pounds a month now you may pay a good deal more longer term.

Tough though as I know what its like trying to shave costs as one salary disapears.

In reply to alj:

I agree with those who say keep up the life insurance at least until the children can look after themselves whilst their dad is at work, because if you die, your husband would be faced with a terrible dilemma of trying to pay for child care, or giving up work to care for them.

In reply to alj:

Keeping your life insurance I would have thought it depends on loads of factors. some I thought of

1. whether you are planning to have more children - how long you will be not earning
2. if you were to pop your clogs how much the money would make a difference of not, that depends on overall finances, do you have a mortgage
3. if you were to pop your clogs would your husband be able to call upon support of family and friends for childcare, school pick ups etc
4. remember childcare full time cost doesn't continue for ever, although once at school there might be breakfast clubs and after school groups (dont ask me how much they are though).

My wife is the main earner - she is insured - me I earn somewhat less and have no life insurance

In reply to all

Thanks all. My thoughts have been reinforced! Would be nice to save a bit of money now, but is probably a necessary evil. I thought I'd heard that premiums go up later in life so thanks for confirming. I will go back to work at some point and will probably want insuring, so I'll hold off cancelling andcut back on my coffees out! Thanks A

In reply to alj:

Don't stop paying life-insurance.

C'mon, what does it amount to, about £10 a month or so?

For the level of cover it provides in the rather unlikely event something does happen it's well worth.

A friend's fiance down this Sunday weekend in a car crash aged 26. Reminded me to keep paying the life insurance just in case for the Mrs and the future Master Sam_In_Leeds' future.

In reply to Sam_in_Leeds:

Thanks Sam, unfortunately quite a lot more than ten pounds a month. Maybe I should just shop around!

In reply to alj:

Definitely shop around. My building society wanted to charge me near to £40 for life insurance due to climbing and mountain biking. I went with a specialist (Summit Finance?) They advertise on here from time to time and it came in just under a tenner a month.

In reply to alj: as a comparison as I am the same age as you I have critical illness and life insurance attached to a mortgage (payout reduces over time in line with the mortgage) I have around 16 years left on mortgage and it costs £25 a month.