Life Assurance/Insurance for couple aged almost 60!

Jo4

A couple who I know asked me what life insurance/assurance policy would be best for them. They are almost 60 and do not work and therefore are in receipt of benefits. They have debt which they are paying regularly. They want a policy each so if anything happened to the other that the remaining one would have less worries. They want a policy which will cover the debt and possibly a little extra.

What policy would be best for them? If they had a policy would this affect their benefits if anything did happen the other? Please answer as soon as possible as they would like this sorted sooner rather than later.

dunstonh

What policy would be best for them?

Possibly a family income benefit (FIB), Level Term Assurance (LTA) or Decreasing Term Assurance (DTA) depending on the amounts, timescales and budget. From April 06, pension term assurance could be a possibility as well (PTA).

If they had a policy would this affect their benefits if anything did happen the other?

Not if it was paying off the debts.

Jo4

dunstonh wrote:

Possibly a family income benefit (FIB), Level Term Assurance (LTA) or Decreasing Term Assurance (DTA) depending on the amounts, timescales and budget. From April 06, pension term assurance could be a possibility as well (PTA).



Not if it was paying off the debts.

For example, if they had life policies for £25,000 each their benefits would not be affected?

dunstonh

its life cover sum assured minus debts = whats left over and classed as savings that will matter.

To be honest, at age 60, they arent going to afford large enough sum assureds to make a lot of difference. Especially if the income is tight already.

Jo4

dunstonh wrote:

its life cover sum assured minus debts = whats left over and classed as savings that will matter.

To be honest, at age 60, they arent going to afford large enough sum assureds to make a lot of difference. Especially if the income is tight already.

THANKS! You make things easy to understand. What policy would be best for them, where could I learn about the different policies you mentioned and who could they get it from?

dunstonh

At this very moment, A family income benefit (FIB) or Level Term Assurance (LTA) are most likely. FIBs pay the sum assured as a monthly benefit. It is not classed as income so does not hit benefits. It also doesnt pay a lump sum, so cant bring up the savings. For that reason its not very useful for paying off debts but for bringing in monthly income which the DSS cant include, it can be useful LTA pays out a fixed lump sum on death. Perfect for debts.

These can be purchased through discount protection firms mentioned on this site. They will be the cheapest generally but its a DIY process. Alternatively, any IFA or whole of market protection advisor can arrange these. The premium will be a little higher but still much cheaper than any bank or building society. Discount firms are actually IFAs or whole of market protection advisors who are not taking their full entitlement of commission. That reduces the premium down. However, they do not give advice which is why its cheaper. A local IFA can be found at https://www.unbiased.co.uk . That site is the recognised directory of IFAs.

payless

Although do check their registration , as the firm that comes up by me is included as an IFA but he changed 3m ago to a rep of SJP

Jo4

dunstonh wrote:

At this very moment, A family income benefit (FIB) or Level Term Assurance (LTA) are most likely. FIBs pay the sum assured as a monthly benefit. It is not classed as income so does not hit benefits. It also doesnt pay a lump sum, so cant bring up the savings. For that reason its not very useful for paying off debts but for bringing in monthly income which the DSS cant include, it can be useful LTA pays out a fixed lump sum on death. Perfect for debts.

These can be purchased through discount protection firms mentioned on this site. They will be the cheapest generally but its a DIY process. Alternatively, any IFA or whole of market protection advisor can arrange these. The premium will be a little higher but still much cheaper than any bank or building society. Discount firms are actually IFAs or whole of market protection advisors who are not taking their full entitlement of commission. That reduces the premium down. However, they do not give advice which is why its cheaper. A local IFA can be found at www.unbiased.co.uk . That site is the recognised directory of IFAs.

Apparently there isn't an IFA within 200 miles of their postcode, they are in N. Ireland.

Jo4

payless wrote:

Although do check their registration , as the firm that comes up by me is included as an IFA but he changed 3m ago to a rep of SJP

What is a SJP?

payless

Jo4 wrote:

What is a SJP?

A provider provider .. - hence not the person listed on the site , had moved from being independent to a representative of that provider

Jo4

dunstonh wrote:

At this very moment, A family income benefit (FIB) or Level Term Assurance (LTA) are most likely. FIBs pay the sum assured as a monthly benefit. It is not classed as income so does not hit benefits. It also doesnt pay a lump sum, so cant bring up the savings. For that reason its not very useful for paying off debts but for bringing in monthly income which the DSS cant include, it can be useful LTA pays out a fixed lump sum on death. Perfect for debts.

These can be purchased through discount protection firms mentioned on this site. They will be the cheapest generally but its a DIY process. Alternatively, any IFA or whole of market protection advisor can arrange these. The premium will be a little higher but still much cheaper than any bank or building society. Discount firms are actually IFAs or whole of market protection advisors who are not taking their full entitlement of commission. That reduces the premium down. However, they do not give advice which is why its cheaper. A local IFA can be found at www.unbiased.co.uk . That site is the recognised directory of IFAs.

Can a couple have an FIB and an LTA each? SORRY for all the questions but I want to make sure I get this correct as they are depending on me to get it sorted for them.