Life Insurance

metalika

Hi I need some advice and I am hoping there's an intelligent person out there who will know the answer.
My mum is 75 and refuses to take out any insurance to cover funeral costs etc. She isn't wealthy and neither are we which means we are going to find it nigh on impossible to pay for the essentials when the time comes.
My question is:- would my husband and I be able to take out life insurance in her name to cover this?

PeacefulWaters

You can. But it won't be cheap. She could take it out and you pay the direct debit.

Saving would probably be more cost effective, but runs the risk of her dying early.

Find out what state support there is for funeral costs and if you'd qualify.

Does she own a house or a car?

addedvaluebob

Most of the 'over 50's' life cover works out as very expensive if your mum lives a long time. The problem is that it acquires no value but if you/she stops paying then it lapses without value.

If your mum is fit and healthy and hopefully lives a long time the break point is anything from 8-12 years after which you are faced with the prospect of maintaining the premiums even though you have paid in more than the amount of the sum assured or writing off the premiums you have paid.

Generally speaking, it is probably better if you save but everyone's circumstances and health are different

MABLE

I have decided to take out life insurance at 64. Also i have insisted the underwriters get my medical record from my doctor. Then that way there should be no issues with something I have failed to tell me.

dunstonh

The funeral bill is one of the few things that can be paid out of the estate before it is settled. Does she not have enough to cover the funeral? (i know you say she hasnt much but is she really that short?)

I have decided to take out life insurance at 64. Also i have insisted the underwriters get my medical record from my doctor. Then that way there should be no issues with something I have failed to tell me.

If its a life assurance plan then the underwriters will decide and that wont be a problem. If its a life insurance (over 50s) plan then these are not medically underwritten at point of sale. Hopefully, yours is a life assurance and not a life insurance (over 50s) plan as at 64, the former would be better unless you are in poor health.

starrystarry

MABLE wrote: »

I have decided to take out life insurance at 64. Also i have insisted the underwriters get my medical record from my doctor. Then that way there should be no issues with something I have failed to tell me.

You are mistaken. The fact that the underwriter has requested a report from your GP doesn't mean you'll be protected if there's something you have failed to tell them. A report from your GP doesn't replace your obligation to answer the questions honestly and completely.

There could be something that your GP isn't aware of, or doesn't think is relevant. If you don't disclose it, and your GP doesn't mention it in the report, then there could be an issue.

You need to make sure you've answered all the questions accurately.

Mojisola

If you want to be sure the funeral is paid for, why not buy a funeral plan rather than an insurance policy?

http://www.which.co.uk/money/insurance/reviews-ns/funeral-plans/the-costs-of-funeral-plans/
Some of the information is out-of-date (slight increases in price) so check the details with the provider before buying.

metalika

Thank you for your replies. Unfortunately my mum doesn't own her property or a car. She has meagre savings certainly not enough to cover the cost of a funeral, is in poor health and refuses point blank to take out life cover, (like others of her age group, she doesn't believe in it). So as you can imagine I am stuck between a rock and a hard place

metalika

p.s one question I forget to ask:- If I did want to take out a policy do I have to have her permission?

Mojisola

You can buy a Funeral Plan for someone else.