Grandparents Life Insurance

Robin9

bri90bri wrote: »

yea i understand that in regards to car insurance and home insurance but life or should i say dealth is assured to happen, i thought the pay out should be lots, mine is 40 grand if i die

I don't think you are comparing like for like. Your car insurance may well pay out £40k if you die in a car accident but it doesn't cover you for a heart attack.

20 years ago your grandparents policy might have been good value for a funeral costing £1000 but not now when it costs over £3000.

molerat

bri90bri wrote: »

................ My granddad is 90 this year and my gran will be 87. ...................

bri90bri wrote: »

thats what i am saying the policy dosent give peace of mind as they dont pay out enough to even cover a funeral never mind 2 plus the remaining mortgage on the house

How were they intending to pay this off ? Is it a normal mortgage or some sort of equity release ?

bri90bri

im not so sure on this, i i know its just the interest they are paying on the mortgage there is still £14000 outstanding

dunstonh

bri90bri wrote: »

im not so sure on this, i i know its just the interest they are paying on the mortgage there is still £14000 outstanding

What you have described is a niche type of life insurance, typically sold without advice via newspaper advertising, on the checkouts of supermarkets or by the likes of Michael Parkinson on TV. It is a very poor quality product that is only suitable for a very small minority.

These plans are bought without advice on a DIY basis. i.e. no adviser involved and you take on total responsibility for that decision. No-one else to blame if its wrong.

What are your grandparents doing with a mortgage at their age? Or is it equity release? (which you wouldnt use life cover for as the debt is paid from the equity in the house on second death).