Life insurance - why?

[biometrics]

So I've had a Liberty life insurance policy for 20 years. It has some terminal health and dread disease benefits too.

But I am asking myself why?

In the past I believed that the bank wants it for a bond but it doesn't seem like that anymore.

I am single with no children and the idea of leaving behind an inheritance to my housemate, brother and sister seemed like an altruistic idea for a long time.

Recently, when my salary was reduced due to company troubles, my sister and brother didn't care. That makes me question why I contribute to family expenses and why they are beneficiaries of my will. I am not of theirs.

It's become a significant portion of my budget.

I thought to halve it and only keep my housemate as a beneficiary, but she is annoying me currently...

Thoughts? Cancel?

Edit: If I cancel I get three years' payments back.

 

[Sinbad]

If you have no need of it, cancel.

Maybe have a very small policy in place to cover funeral expenses etc

 

[biometrics]

If you have no need of it, cancel.

Maybe have a very small policy in place to cover funeral expenses etc

Makes sense. Can't believe I paid for this for 20 years. What a waste.

As to my corpse, I'm fine with them dumping me at Salt River morgue. Been there.

 

[scudsucker]

As to my corpse, I'm fine with them dumping me at Salt River morgue. Been there.

If you can, donate your body.

Skin, corneas, all sorts of your body can be used, even if the major organs cannot.

And worst case, you'll end up teaching up-and-coming surgeons at UCT about human anatomy.

FWIW they cremate what is left, so Salt River do not have to handle the cost.

Life insurance can cover the wake.

 

[satanboy]

Only for people with families imho.

 

[Johnatan56]

If all your expenses are paid up, and your dependents can afford to live without it, I wouldn't see the point.

By expenses paid up, I include life insurance for the bond/loan, just so if e.g. House mate is living in it, they don't get kicked out hopefully.

If you don't have them, I don't see the point in doing so, currently I only have it as it's part of my benefits, same as at previous company, where it was included as part of the disability benefits. Financially, my family is fine, and I don't have kids/partner or any loans, so no need of it.

If you're in retirement, with no loans and no dependent, get rid of it. If you're still working, wouldn't get rid of it if it includes disability cover.

 

[SauRoN]

Yeah a benefit to cover your funeral would be more useful (not life insurance, it takes too long to pay out), you want any of the pays within 24 hours types of cover.

Dread Disease and Disability is a must have because that covers yourself.

Otherwise life insurance is really just there for those remaining to carry on with their lives when you can’t support them any more. If you don’t have any of those then you really don’t need it.

If your net worth is self sustaining you also don’t need it.


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