Over 60's whole of life assurance(insurance?)

smitchy73

Looking for information or help from you guys.
Mother in law who turns 65 in August has just discovered that two policies she has expire when she turns 80, no pay out, unless of course she passes on. Although she still has another 15 years to go before anything happens, she wants to ensure there is something in place for longer so that her mortgage, which is an interest only one for as long as she lives, she wants a policy to pay out to clear the mortgage therefore not leaving her two kids(not me) to worry about that which then allows them to do as they chose with the house.

Is there anything out there that would cover her? I've tried doing some searches but only getting these policies which basically only cover for small amounts up to about £10k but the monthly payment is quite expensive.

Many thanks in advance for your help.

InsideInsurance

What sum insured is she looking for? What is quite expensive?

If she is 65 she has a life expectancy of circa 16 years. If you wanted a payout of £100,000 on death at a very very basic level you would be looking at about £520 a month premium assuming an insurer only took investment income to cover both costs and profit. Given the fact that insurance is a distress purchase, insurers want more income etc it's potentially going to be higher (obviously these are very crude calculations)

Potentially it's a case of needing some realism. Odds are she won't live another 60 years and with investments so flat premiums have to increase to cover the margins.

dunstonh

I've tried doing some searches but only getting these policies which basically only cover for small amounts up to about £10k but the monthly payment is quite expensive.

They are probably the over 50s style life insurance plans. What is most likely to be suitable is whole of life assurance. However, whilst they can be used for sum assured into the millions, the cost of cover is going to reflect the level of cover and her age. Typically, you are looking at better value than the over 50s life insurance plans but as mentioned above, the cost is reflective of her age.

Does she actually need life assurance?

The fact she has an interest only mortgage suggests her budget is already limited. She isnt going to get any gain out of the life assurance and there doesnt appear to be any financial dependants. If the children want the asset then perhaps the children should pay for the life assurance.