Guaranteed over 50s plans

civil12345 · 17 June 2017 at 7:53PM

Hi, my mum has asked me to look into this for her. I think this would be much better than a standard life insurance policy as she has a few health issues and I know she wouldn't want anything that involves medicals or declaring problems.

She's 59 and I'm looking at premiums of around £50 per month with a payout of around £13,000. I understand the sitaution with regard to payouts after 1 year, if as a result of accident etc.

Firstly, any general comments on these products? Secondly, a few questions

1) I think these products will be more expensive than she was expecting. Therefore I'm thinking of helping her with the cost. I assume this will be ok...my idea is to send her some money each month into the account the premium is taken from. I assume that is ok and won't be seen as strange?
2) Can you have more than one of these policies from different providers if you want extra cover? Also thinking that as some only pay our after 2 years might be an idea to split as they end up with a higher premium.
3) From what I've seen the fixed policies in general seem better than increasing? Agreed? I looked at an L&G one where the payout increasing by RPI but the premium increases by 1.5 times RPI which doesn't seem good.
4) I assume when we get further through these quotes there will be an option to declare who receives the payment. Is this correct?

Thanks for any comments

csgohan4 · 18 June 2017 at 7:12AM

look at life assurance products they are much cheaper and value for money. However given the age, it still won't be cheap

civil12345 · 18 June 2017 at 3:28PM

Thanks, any other thoughts on this?

Browntoa · 18 June 2017 at 4:12PM

does she actually NEED a life policy ??

is there an outstanding mortgage or other debt ??

otherwise what is the plan for the proceeds after death

civil12345 · 18 June 2017 at 4:48PM

No mortgage (rents from council) and no debt (I thought she had a bit of credit card debt but she told me yesterday she paid it off).

She doesn't need a life policy. To be honest she's talking about wanting to cover funeral costs and leave me a little something, as we're really close and my situation is up-and-down.

So far she's talked about starting to save something in cash or this life policy for when she's gone. I'm now thinking about opening a SIPP and putting money into that (it wouldn't be much and she's a non taxpayer). She has no other pension provision.

I'm just trying to look into options. From the conversations we've had I know this means a lot to her. My current thinking is that a SIPP would be good (I could actually help her with contributions) and it would be flexible, so if she does die it would do what she's looking for or could be used for something else in a few years if that becomes more important.

Mojisola · 18 June 2017 at 5:15PM

civil12345 wrote: »

No mortgage (rents from council) and no debt (I thought she had a bit of credit card debt but she told me yesterday she paid it off).

She doesn't need a life policy. To be honest she's talking about wanting to cover funeral costs and leave me a little something, as we're really close and my situation is up-and-down.

Why not suggest that she saves enough to cover a funeral (although that could be many years away) and then give you cash now and then to help you out - that way she will see the benefit you get from it instead of you having it after she's dead.

civil12345 · 18 June 2017 at 6:24PM

Yeah that's a fair enough idea. She likes the idea of leaving a lump sum. Like I said we are close and support each other at the moment already.

takman · 18 June 2017 at 8:59PM

civil12345 wrote: »

Hi, my mum has asked me to look into this for her. I think this would be much better than a standard life insurance policy as she has a few health issues and I know she wouldn't want anything that involves medicals or declaring problems.

She's 59 and I'm looking at premiums of around £50 per month with a payout of around £13,000. I understand the sitaution with regard to payouts after 1 year, if as a result of accident etc.

Firstly, any general comments on these products? Secondly, a few questions

1) I think these products will be more expensive than she was expecting. Therefore I'm thinking of helping her with the cost. I assume this will be ok...my idea is to send her some money each month into the account the premium is taken from. I assume that is ok and won't be seen as strange?
2) Can you have more than one of these policies from different providers if you want extra cover? Also thinking that as some only pay our after 2 years might be an idea to split as they end up with a higher premium.
3) From what I've seen the fixed policies in general seem better than increasing? Agreed? I looked at an L&G one where the payout increasing by RPI but the premium increases by 1.5 times RPI which doesn't seem good.
4) I assume when we get further through these quotes there will be an option to declare who receives the payment. Is this correct?

Thanks for any comments

civil12345 wrote: »

No mortgage (rents from council) and no debt (I thought she had a bit of credit card debt but she told me yesterday she paid it off).

She doesn't need a life policy. To be honest she's talking about wanting to cover funeral costs and leave me a little something, as we're really close and my situation is up-and-down.

So far she's talked about starting to save something in cash or this life policy for when she's gone. I'm now thinking about opening a SIPP and putting money into that (it wouldn't be much and she's a non taxpayer). She has no other pension provision.

I'm just trying to look into options. From the conversations we've had I know this means a lot to her. My current thinking is that a SIPP would be good (I could actually help her with contributions) and it would be flexible, so if she does die it would do what she's looking for or could be used for something else in a few years if that becomes more important.

So basically your going to be paying into a plan and then receive less money back when she dies; that makes no sense at all!.

You need to read this page fully before you recommend these plans to her:

http://www.moneysavingexpert.com/insurance/over-50s-life-insurance

You need to remember that the large majority of people who pay into these plans pay out far more than they will ever pay out. That's how they make their money!. Mostly your much better off just paying the money each month into a savings account.

But any plan you look at you need to see the restrictions on paying out i.e. not in first two years and then work out after how many years you will have paid in more than the plans payout. Then decide if it's worth it.

civil12345 · 20 June 2017 at 6:17PM

csgohan4 wrote: »

look at life assurance products they are much cheaper and value for money. However given the age, it still won't be cheap

Tried to go through the application process for a few and keep getting rejected due to the (several) medical conditions.

civil12345 · 20 June 2017 at 6:18PM

...are there any life assurance company's that specialise in people with multiple medical conditions?

forgotmyname · 20 June 2017 at 8:05PM

I would go for a funeral plan. Once paid then its done and quite likely to increase in price more than anyinterest rate currently available.

Had quite a few over the past few years and the price since 2010 has increased quite a bit. (over £1000).

Guaranteed over 50s plans

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free