Life Insurance Discussion

dunstonh

I've been told a lot of insurances will not pay out after you reach 75

Life assurance will pay out if death occurs before a specified age. Some plans dont allow cover beyond age 75 but some do.

brianrhill

dunstonh wrote: »

IFAs can work on either fee basis or commission basis. Its up to you to decide which. Not the IFA. The IFA must have a fee option. For smaller transactions, commission is usually cheaper. For larger ones, then fee is usually better. Some will agree a fee but only take commission to the level of the fee and rebate the rest (either meaning lower plan charges or a cash rebate depending on the product).

Bear in mind that if you opt to pay an IFA by way of commission and you then decide to cancel the policy at a later date then you should expect to be expected to replace the adviser's reclaimed commission.

Nessa56

hi I am hoping somebody will be able to help my query.

I am 53, single, live on my own and have a £65000.00 mortgage. I have 2 grown up children with there own homes.

I am paying out £50.00 per month for £80,000.00 life insurance and I don't know if I should be bothering, (it is so high due to health issues about 15 years ago)

My question is, if I die now, would the building society take back the flat or could my children sell it and split the proceeds.

Sorry if this is a stupid question but I am looking at ways to save money so I can overpay on my mortgage and hopefully get rid of in about 5 years if possible.

I would be grateful for any help in this.

Thanks in advance

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dunstonh

My question is, if I die now, would the building society take back the flat or could my children sell it and split the proceeds.

If you died without life assurance then the executor of the estate would have to sell the property and repay the debts. Any surplus left over will be distributed as per your Will.

Nessa56

Thank you for that Dunstonh, the only thing that worries me there is what if it takes 6 months to sell won't the building society snatch it back if the mortgage isn't being paid while it is on the market?

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Nessa56

Sorry to bump this, but I really need to get this clear in my head before I cancel my life insurance, if anyone can help that would be fantastic

thanks
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brianrhill

If you want your children to receive the most of your estate possible, it's probably worth keeping the policy. That's assuming the
mortgage is paid off by the. Time the policy term ends.

Many people have life insurance, the vast majority paying too much for too little, having bought cheap cover off the internet with no advice, or been sold it by a bank, which is also completely nuts.

I think it's safe to say that if you haven't been advised by an IFA, the chances that you have adequate/suitable insurance are very slim.

Nessa56

I was sold this by a financial advisor some years ago, but I still feel it is too expensive, also at the time I had a repayment mortgate (now interest only), and I feel he sold me the wrong one as the cover doesn't go down with the mortgage, I wasn't too savvy then)

I think I may cancel this and then look at buying another one later.

thanks
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dunstonh

I was sold this by a financial advisor some years ago, but I still feel it is too expensive

It will be expensive. FAs are the most expensive distribution channel. IFAs are cheaper.

also at the time I had a repayment mortgate (now interest only), and I feel he sold me the wrong one as the cover doesn't go down with the mortgage, I wasn't too savvy then)

Decreasing term assurance would have been better at the time but many people do level term assurance instead. Personally I don't but it doesnt make it wrong.

I think I may cancel this and then look at buying another one later.

Just make sure you dont die in between. Although based on what you have said, you dont need life assurance.

The house would be priced for quick sale which may mean it is priced a little lower than you would do if you had choice in the matter.

Nessa56

dunstonh wrote: »

Just make sure you dont die in between. Although based on what you have said, you dont need life assurance..

Thank you for that :rotfl:I will try my best and I agree I dont' think I need life assurance either.

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