Seems only 1 in 4 in the UK bother with it.

I never have. A generous occupational pension seemed to take of any immediate financial issues for wife and daughter. With no mortgage on the house I’m not sure there would be much benefit but then I’m also getting older so statistically closer to a time when it might pay out.

with no mortgage you’ll likely find more benefit in critical illness. Cancer is very uncommon unfortuately and the benfit/return you get from your premium is excellent value for money. Imagine if you got cancer, bummer right? but imgaine if after a month of being diagnosed you got 100k, now you can spend your last days jumping out of helicopters or riding your bike in puerto rico or whatever wealthy fantasy you like.

I have, my partner is a financial planner and she has told me some awful stories about people passing away and leaving loved ones with jack shit.

Best getting it when you’re younger, its cheaper!

i get it through my work. i have no family/dependents though, so tbh i wouldn’t buy it otherwise, there’s no point whatsoever.

I dont – for similar reasons to you. PLUS i had a few quotes and because of work locations and nature of work – my BEST quote was a 1/4 of my monthly basic wage !

The mrs took out a policy when we bought the house on a decreasing term in line with the house.

Based on experiences with insurance companies in the past and present im increasingly sceptical as to wether anyone will ever get paid out other than the people getting a monthly wage from the insurance company.

Its always made me laugh that when it comes to critical illness insurance – having several(life changing) heart attacks and spending 6 weeks in intensive care was never classed as critical….

you’re wrong, have you ever claimed on a life insurance? provide a death certificate and you’ll find usually they’ll pay out within a week.
Critical illness cover varies so pay more and you get better benefits, same as anything but you can’t just say they’re all rubbish because they didn’t payout in my circumstances. The companies are all measured on their payout rates. Have a look at defacto
here: http://www.defaqto.com/star-ratings/critical-illness-cover

With no dependants I fail to see the reason why I should bother. My response to colleagues of “why should I bother, I’ll be dead” is generally met initially with shock and surprise but once they think about it they see my point.

Do you guys have a will? Some of our friends dont yet they have kids and I dont understand that.

What happens when you do people who don’t have dependents? Do you own, rent? Have mortgages? What happens to your estates etc?

Between two generic federation policies and the terms of my pension mine would get around 8x my gross annual salary. That would pay off the mortgage with something like 250k left over. My wife is covered too but for a lower value 🙂 . Costs me £9 a month or thereabouts, maybe £10?

I wouldn’t bother if I had no dependants.

I dont – for similar reasons to you. PLUS i had a few quotes and because of work locations and nature of work – my BEST quote was a 1/4 of my monthly basic wage !

Eh, £10pcm gives £50k of death insurance.

I get it through work, but wouldn’t bother if I didn’t. No mortgage, no kids and wife has a good job.

Do you guys have a will? Some of our friends dont yet they have kids and I dont understand that.

My brother and his partner didn’t (they have two kids), so I paid a Solicitor, made an appointment for them and basically dragged them there and said ‘sort it out’.

“I dont – for similar reasons to you. PLUS i had a few quotes and because of work locations and nature of work – my BEST quote was a 1/4 of my monthly basic wage !

Eh, £10pcm gives £50k of death insurance.”

so the salesman keep telling me …. then i answer their questions truthfully and the price rockets 😉

I get it through work, but wouldn’t bother if I didn’t. No mortgage, no kids and wife has a good job.

You see this I dont understand.

What happens, and please this is a hypothetical situation but one i have heard about.

You die. She gets so depressed and stressed she has to finish work. What happens then?

I suppose you dont care as you’re dead? Surely you want your loved ones to be looked after?

You die. She gets so depressed and stressed she has to finish work. What happens then?

She inherits two houses (no mortgages), my pension, my savings – she wouldn’t have to work if she didn’t want to.

Do you guys have a will?

I do now yes, but then again my previous answer of “why would I care, I’ll be dead” would also apply.

What happens when you do people who don’t have dependents? Do you own, rent? Have mortgages? What happens to your estates etc?

As far as estates are concerned it’s my understanding that it would be divvied up between family members (parents, siblings, cousins etc) at fixed percentage and if that can’t be done then it’s either the government or the Duchy of Cornwall. Currently I have a mortgage but as it is a loan that is secured on a property, should I die it would be sold the mortgage paid and the remainder left to the estate.

Just an observation about not needing LI when not having any dependents. However as pointed out, life insurance is much cheaper when you’re youngish. So you might not see the need now….

it’s my understanding that it would be divvied up between family members (parents, siblings, cousins etc) at fixed percentage

Not necessarily.

You’re much better off sorting a will and stating all the percentages / relatives yourself. Also if you leave more than 10% (IIRC) to charity, the tax liability is reduced.

If we both get mown down, 20% goes to 4 charities (5% each) and the rest is split into 6 equal trust funds for our nephews.

I finally set up some last month as part of my “sort out grown up things now you have turned 40” tasks. 🙂

Life insurance and critical illness too.

We both work, we have two young kids and £200k left on our mortgage.
So it seemed like a good plan.

One aspect I didn’t know about is that the critical illness covers the kids too.

It was all very sobering stuff reading through the big book of things that might kill you.

No will yet, but it is on the list.

If you’re married with kids, what happens if a) you or b) both of you die? I always assumed a) my wife would get everything and b) the kids would.

Just to be pedantic, you do know there is no such thing as life insurance?

If you’re married with kids, what happens if a) you or b) both of you die? I always assumed a) my wife would get everything and b) the kids would.

It’s all up for grabs if you don’t have a will…..

https://www.gov.uk/inherits-someone-dies-without-will

Note that it varies according to which country you live in. Being in Scotland my wife would inherit almost everything and my daughter a little. Should we both die simultaneously then my daughter would get it all.

Not necessarily.

I should have said that I’m in Scotland so according to that link it would be 50% to my parents and 50% to my sisters. It won’t actually be that as I do have a will which will give some to my family and the rest gets sold and donated to charity.

Yep, got it

Hoping that is the best waste of money EVER !!

If you’re married with kids, what happens if a) you or b) both of you die? I always assumed a) my wife would get everything and b) the kids would.

It’s all up for grabs if you don’t have a will…..

^This – if you have kids – make a will asap. Don’t leave to ‘I thought that might happen’.

And it avoids a massive scramble for cash between relatives.

That link’s quite clear – wife and kids get it all in England – but it doesn’t mention inheritance tax in that case, thought there would be for the kids?

We have about three policies, one covering me, one covering the wife, another covering me again with a large lump sum payout (as I am the main earner in the house). We did them along with a will this year after realising we had done jack-shit to help protect our family in the case of the worst happening).

In total they only cost about £60 a month (but they do have limited critical illness cover – that shoves the price up hugely).

As said above, I hope they are never used.

but it doesn’t mention inheritance tax in that case, thought there would be for the kids?

Inheritance tax is based on the value of the estate and is paid by the estate. It isn’t impacted by which individual gets the money.

Wifey gets it tax free right?

Looks like inheritance tax paid for the kids’ share only and any unused portion of the tax free allowance gets added to spouse’s allowance for when they die.

I’m in Scotland too.

but it doesn’t mention inheritance tax in that case, thought there would be for the kids?

You can reduce the inheritance tax rate by donating a %age to charity – hence worth looking at getting a proper will sorted.

Back to wills – if you have kids it’s not just about who gets the cash. There are other things to consider:-

If you both die…
• Who becomes their guardian?
• Who manages the money until they are 18/21 etc?
• Where do they live?
• Do you stagger the funds at certain ages.

If just one of you dies…
• Will you just leave all the money to your spouse, or will you set aside 30, 40, 50% in trust for your child. Your spouse may re-marry a right knob who blows the lot.

Just an observation about not needing LI when not having any dependents. However as pointed out, life insurance is much cheaper when you’re youngish. So you might not see the need now….

i’m 47. i’m never gonna have any dependents now! believe me, it won’t happen.

We have. I’m not sure I did at first, as mortgage was only in my name, and like you had death benefits (not really like friends with benefits) through work, but after marriage set it up independently. Since then of course I’m no longer with the same work (not really with any) so getting a scheme set up early was quite handy.

At the moment it’s paid up to take care of children, but with one off to university and other lining up to do “something” there will come a time when its not needed. Need to chat with IFA in a little while so I’m sure they will raise the question “why”.

Oh and as for the will, when I bought first flat, through my quite wise uncle, he drew up a will – any will will do really – and arranged the mortgage on the basis I got a will in place.. I was 20…

And as for the will, yes it sets up guardians for the children, expression of wish how they should be brought up (again, guardian style), plus we have power of attorney over each other should end up in dire health..

We’ve got it. £55 a month is buying enough cover should one of us die that our house gets paid off, there is enough money to cover monthly outgoings until my youngest is 21 (currently 2), and that both kids have lump sums of 60k for university. Plus I get 50% off bikes at Evans.

If both of us die, the kids are quids-in on soft drinks and rugby players.

Comedy aside, I don’t think I’d bother if I didn’t have children. The wife could work and support herself if I died, and vice-versa. Its the situation of one of us dying and the other needing to be a full time parent, or both dying and the kids needing support until they’re old enough to do it themselves that we’re protecting against.

Mine is covered by my employer.

My parents and my eldest sister definitely do not need it so it’s only my little sister I have to be wary of round stairs 😀