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    • rhylbloke
    • By rhylbloke 11th Jun 17, 11:44 AM
    • 29Posts
    • 3Thanks
    rhylbloke
    Basic life insurance (assurance?)
    • #1
    • 11th Jun 17, 11:44 AM
    Basic life insurance (assurance?) 11th Jun 17 at 11:44 AM
    Hi, I've recently retired and am looking for some insurance to pay a lump sum in the (hopefully unlikely) event of my death. While I was employed, my death would have meant a decent payout to my wife/widow based on my salary, so I haven't given insurance much thought until now.
    I'm 62 next week, in good health and physically fit. Don't drink much and gave up smoking 23 gears ago.
    We own our own home with no mortgage and have no dependents now. My wife has her own state pension now and also a small pension from work. We have savings of around £50k.
    So the insurance payout would be purely to pay for my funeral and leave a lump sum for my widow. I'm more than happy to have a medical if that would reduce any premiums.
    Any advice would be gratefully received.
    Thank you.
Page 1
    • Quentin
    • By Quentin 11th Jun 17, 11:58 AM
    • 31,495 Posts
    • 15,504 Thanks
    Quentin
    • #2
    • 11th Jun 17, 11:58 AM
    • #2
    • 11th Jun 17, 11:58 AM
    There is a MSE guide to life insurance:


    http://www.moneysavingexpert.com/insurance/cheap-life-insurance
    • rhylbloke
    • By rhylbloke 11th Jun 17, 12:26 PM
    • 29 Posts
    • 3 Thanks
    rhylbloke
    • #3
    • 11th Jun 17, 12:26 PM
    • #3
    • 11th Jun 17, 12:26 PM
    Hi, thanks. I read that but just wondered if what I was looking for was as straightforward as I assumed it should be.
    I did a search for over 50's life insurance and came up with some quotes for a £50k payout over 20 years for a premium of around £33 to £37. Not sure if that's good, poor or average.
    • Quentin
    • By Quentin 11th Jun 17, 12:34 PM
    • 31,495 Posts
    • 15,504 Thanks
    Quentin
    • #4
    • 11th Jun 17, 12:34 PM
    • #4
    • 11th Jun 17, 12:34 PM
    Did you use one of the MSE recommended discount brokers for that quote?


    (Specific over 50 policies are not normally the cheapest)
    • jackyann
    • By jackyann 11th Jun 17, 12:50 PM
    • 2,998 Posts
    • 5,585 Thanks
    jackyann
    • #5
    • 11th Jun 17, 12:50 PM
    • #5
    • 11th Jun 17, 12:50 PM
    I would definitely do your sums, as I know quite a few people (including me) reckon it is just better to save the money.
    Issues:
    Of course interest rates are poor at the moment, but a deal where you agree to 'only 1 withdrawal a year' might suit you, or one of those 'regular savers'.
    And, should you die early, you might not have saved enough - but you have 'fallback' savings.
    Possible advantage round the issue of care home fees, but this is complex anyway and quite liable to change.
    Also possible advantage around Inheritance Tax, that I don't really know about (I'm under the threshold)
    You are in control and can draw out for whatever reason suits you, this may be an issue in 'future proofing' your home or moving to one more suitable if either of you develop disabilities.
    Doing sums may mean considering whose name your savings / assets are in, the kind of tenancy you have with your home etc.
    Age UK have quite good information - but beware as they also promote their insurance!
    • Chris Pollard
    • By Chris Pollard 12th Jun 17, 9:29 AM
    • 64 Posts
    • 23 Thanks
    Chris Pollard
    • #6
    • 12th Jun 17, 9:29 AM
    • #6
    • 12th Jun 17, 9:29 AM
    Rhylbloke, as you say you are in good health, then I'd recommend you speak with a broker and secure an underwritten life policy as the premium rates will be significantly lower than the "over 50's" plan where there is no risk assessment of the individual. The adviser will be able to discuss the level of cover that might be suitable, and the basis of the premiums - for example, some will be reviewable (and hence will increase significantly the older you get) and others are guaranteed (higher initially but provides some certainty going forward).
    Good luck.
    • jonesMUFCforever
    • By jonesMUFCforever 12th Jun 17, 8:39 PM
    • 23,742 Posts
    • 10,969 Thanks
    jonesMUFCforever
    • #7
    • 12th Jun 17, 8:39 PM
    • #7
    • 12th Jun 17, 8:39 PM
    Another take on this - if you have £50k savings do you ACTUALLY need any life cover?
    (No mortgage, no commitments?)
    What goes around - comes around
    give lots and you will always receive lots
    • dunstonh
    • By dunstonh 12th Jun 17, 8:47 PM
    • 88,071 Posts
    • 53,302 Thanks
    dunstonh
    • #8
    • 12th Jun 17, 8:47 PM
    • #8
    • 12th Jun 17, 8:47 PM
    Hi, thanks. I read that but just wondered if what I was looking for was as straightforward as I assumed it should be.
    I did a search for over 50's life insurance and came up with some quotes for a £50k payout over 20 years for a premium of around £33 to £37. Not sure if that's good, poor or average.
    Originally posted by rhylbloke
    Over 50s life insurance are an option of last resort. If you are in good enough health, then proper life assurance is usually a much better value for money option.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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