Life insurance, over insured ?
Discussion
I have a pension with work that will pay out £400,000 (plus spouses pension) if I die and personal life insurance which is another £25 a month, so, getting on for 800 grand.
Three kids, no mortgage, no debts.
Was thinking I dont need the extra, will probably hang on to it but seem to pay out so much money in various insurances (cars, house, ga boiler, dog, 2 * life, mobile phone etc etc), in case something bad happens and would rather have it to spend/save, it only runs another 4 and a bit years until I am 50 anyway, would you bin it off ?
Three kids, no mortgage, no debts.
Was thinking I dont need the extra, will probably hang on to it but seem to pay out so much money in various insurances (cars, house, ga boiler, dog, 2 * life, mobile phone etc etc), in case something bad happens and would rather have it to spend/save, it only runs another 4 and a bit years until I am 50 anyway, would you bin it off ?
Came to a similar conclusion, lucky really as if I'd have listened to our IFA I'd have a load of extra life cover that I really don't need (and he'd be earning more commission that I didn't need him to earn).
I'm in my forties, two kids and the wife, I have some life cover already with work which is 4 x salary if I die whilst employed by them and as you say my wife also gets my pension which is sitting around £250k at the moment so her and the kids should be good for ~£450k if I croak. Think that should cover stuff until the kids get jobs, admittedly they might no be quite so comfortable as they would be with me alive but me dying isn't supposed to be a win win situation
I'm in my forties, two kids and the wife, I have some life cover already with work which is 4 x salary if I die whilst employed by them and as you say my wife also gets my pension which is sitting around £250k at the moment so her and the kids should be good for ~£450k if I croak. Think that should cover stuff until the kids get jobs, admittedly they might no be quite so comfortable as they would be with me alive but me dying isn't supposed to be a win win situation
Jockman said:
Absolutely agree 100%. A small amount of money for such peace of mind.
All the other insurances are just general running costs.
Exactly. £25pm is not exactly a large amount for an employed person with no residential mortgage.All the other insurances are just general running costs.
The £25pm saved isn't going to be of much benefit to the remaining family if the OP croaked it, as the pay out from the policy would.....
C0ffin D0dger said:
I have some life cover already with work which is 4 x salary if I die whilst employed by them
Don't rely on that. If you get cancer or some other long term fatal illness, you'll have been let go long before you die, so won't get any death in service. No company can afford to employ you if you're off sick for months on end.TwigtheWonderkid said:
Don't rely on that. If you get cancer or some other long term fatal illness, you'll have been let go long before you die, so won't get any death in service. No company can afford to employ you if you're off sick for months on end.
Quite.....and you are much more likely to get ill than you are to die, hence the difference in CIC & Life premiums.....TwigtheWonderkid said:
Don't rely on that. If you get cancer or some other long term fatal illness, you'll have been let go long before you die, so won't get any death in service. No company can afford to employ you if you're off sick for months on end.
Don't worry, got long term sick cover also with work.Whoa, food for thought, will stick with it, I just like to review what I am paying out periodically as its easy to end up overpaying stuff or paying for stuff you dont need.
Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
J4CKO said:
Whoa, food for thought, will stick with it, I just like to review what I am paying out periodically as its easy to end up overpaying stuff or paying for stuff you dont need.
Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
Take a read of the penultimate post on this thread.......sobering;Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
J4CKO said:
that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check,
Death in service does exactly what it says. If you aren't in service when you die, there's no cover. Even if you were let go due to the illness that kills you.J4CKO said:
Whoa, food for thought, will stick with it, I just like to review what I am paying out periodically as its easy to end up overpaying stuff or paying for stuff you dont need.
Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
Don't overlook Income Protection, Accident Sickness and Unemployment Benefit too and Family Income Benefit. CIC too, needn't be paid out as a lump sum. Looks like I may need critical illness cover as well, that is a very good point about the Death In Service benefit and whether or not, if you get ill and survive longer than they will pay you, whether or not it still pays out, would hope so but going to check, also get some kind of payout from an old Local Government pension scheme I was in, need to check what that will pay out, they send a statement each year.
You sort of think you will be ok, but a lad at work died aged 52 a few months back, and he was a very fit lad, or at least seemed to be.
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