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  • FIRST POST
    • Taggie01
    • By Taggie01 9th Oct 17, 11:18 AM
    • 1Posts
    • 0Thanks
    Taggie01
    Life Cover for over 50's
    • #1
    • 9th Oct 17, 11:18 AM
    Life Cover for over 50's 9th Oct 17 at 11:18 AM
    Firstly may I say yes I am a complete idiot for having left it until now to address this issue.
    We did have CIC & Life Cover at one point but went through a very difficult patch & foolishly stopped paying the premiums.
    This weekend for some reason I had a major panic when I realised we had no cover.
    We are both in our late 50's, husband smokes, I don't & never have.
    I am the major wage earner, approx £52k pa & we have approx £30k outstanding on the mortgage which is my main concern. I also have approx £13k outstanding in unsecured debt although this is being reduced at approx £700pmth.
    What are my best options? I was thinking Level Term (as I would like to have a lump sum) + CIC.
    What sort of term should I be looking at? Am I right in thinking that if neither of us dies before the end of the term we cannot expect anything back without paying an additional amount on the premiums?
Page 1
    • YHM
    • By YHM 9th Oct 17, 2:54 PM
    • 99 Posts
    • 34 Thanks
    YHM
    • #2
    • 9th Oct 17, 2:54 PM
    • #2
    • 9th Oct 17, 2:54 PM
    Hi Taggie

    Congrats on realising you have a need to protect yourself and your liabilities. There are far to many out there that do not concern themselves with protection and ultimately suffer financially, if and when something happens to them.

    You need to protect the mortgage for Life & CIC and this can be done on a DTA basis, which is more cost effective than LTA. You could then leave a LTA lump sum to pay any residual liabilities in the event of your death.

    A good broker will give you guidance on what you need and how much it would cost. They usually do this free of charge as well!
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • Chris Pollard
    • By Chris Pollard 9th Oct 17, 3:35 PM
    • 86 Posts
    • 31 Thanks
    Chris Pollard
    • #3
    • 9th Oct 17, 3:35 PM
    • #3
    • 9th Oct 17, 3:35 PM
    Taggie - good advice from the poster above. You might want to think about how your income might be affected if you, or your husband are unable to work due to ill health and as your debts are likely to reduce a decreased lump sum life policy does seem most sensible. Referring to your final point:

    Am I right in thinking that if neither of us dies before the end of the term we cannot expect anything back without paying an additional amount on the premiums?
    Try to imagine life insurance in the same way as all other forms of insurance. If you don't claim on your home, car, travel or pet insurance, you don't get any money back - as far as I'm aware. The premiums you pay cover insurer and other fees but the majority of the premiums go to those who are unfortunate enough to have to claim.

    There was a time when some life insurance policies attracted a surrender value but these days are long gone and it is often more effective to have a specific saving plans rather than combine life cover with savings.

    I very much hope that I out-live my term assurances and will sleep easy knowing that most of my premiums have gone to others far less fortunate.
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