Life Insurance for 60+

SE10_2

My husband and I are both about to retire and so will not have life insurance from our company. I thought it would be straight forward to get cover, but have discovered that it is a minefield out there!.

Basically we only want cover to ensure our funeral and any legal costs are met. My husband is 64 with type 2 diabetes and blood pressure. I am 61 with osteoarthritis (3 knee replacements, all working well now).

With these conditions will we be able to get straight forward cover or do we need specialist help?

Would we be better to get fixed term?

Any advice would be gratefully received

weighty1_2

You've got a few options:

1) An over 50's type plan - no medical questionnaire, however, these are normally pretty poor value for money if someone has no serious medical conditions.

2) A whole of life policy via a company which would require a medical questionnaire and potentially a GP report. Even taking into account your husbands diabetes this could still work out cheaper than an over 50's plan, however, it is dependent on how well controlled his diabetes is and how long he's had it.

3) Do nothing and simply use any assets (savings/investments etc) you have to cover the cost of the funeral.

4) Save some money on a monthly basis to try and build up a "fund" to cover these costs.

Out of interest, what Legal costs are you expecting to incur?

In terms of a fixed term policy, generally this would not be suitable as it does not guarantee a payout unless you die during the term. That said, some providers offer term assurance up to age 90 and this would often be a good bit cheaper than Whole of Life cover so it depends whether you absolutely 100% want to guarantee a payout or whether you're happy to risk living beyond the plan in a bid to keep the monthly cost as low as possible in your retirement.

SE10_2

Thank you weighty1 for your comprehensive reply.

The legal fees I refer to are the distribution of assets between our 2 children on our deaths, although I know we should do a will for this.

I am leaning towards perhaps having an ISA or something similar to ensure funeral costs are covered (my sisters funeral recently cost over £5,000).

Thought life would be simpler at our age, but we seem to be having to make more and more decisions about financial matters.

.... anyway, again, thank you for your help

Quentin

SE10 wrote: »

although I know we should do a will for this....... (my sisters funeral recently cost over £5,000).

If you don't leave wills you will be making loads of unneccessary trouble (and maybe cost) for your children.

(You can prepay your funerals now if you can afford to out of savings)

SE10_2

I know, but it's another expense and I have heard bad things about some of the will writing companies out there.

Many thanks

Quentin

Yes some have an ulterior motive when offering a cheap will service.

But you can use a solicitor or DIY if you don't want to pay a solicitor!

The money you save electing to die intestate will be a false economy when your relatives are left with the problem

kingstreet

Do not accept an executor service when having a will drawn. When I worked for the RBS years ago, it offered a cheap will service, nominating the bank as executor which earned it 10% of the estate in fees.

Cheap now = expensive later. Avoid.