What Type of Life Insurance?

GunJack

I've seen mention on several threads on this, the pensions board, about life insurance for later (i.e. around retirement) life. It seems to be implied that a substantial sum insured can be had for little outlay, even at 60+.

Are these policies a certain type of insurance, or is it just general on-death policies?

Aegis

There are all sorts of policies for use in later life. Term assurance, inter-vivos cover and whole of life cover are likely the three types of policy you might see, but each of those has a variety of optional features as well. What you ultimately want / need will depend on the goal you are trying to achieve.

GunJack

OK, so say, £50k life cover payable on death is the sort of thing I was thinking, I don't know the difference between Term assurance, inter-vivos cover and whole of life cover, but I assume those on here who have been mentioning "life insurance" in lieu of a pension pot to inherit could advise?

What I'm thinking (and I'm a good few years away yet) but I will have SP, and 2x DB pensions (inc. lump sums) but to insure life to up the lump sum if I pop my clogs too early

bigadaj

Your pensions would pay out in some form on your death, also you presumably have death in service work benefit as well.

Just run a quick example on compare the market, this quoted around £25 a month for a 60 year old male non smoker for £50k cover, level term for ten years.

If that is attractive then go for it.

dunstonh

There are around 13 different types of life assurance in the UK. Some are no longer mainstream but niche products. A few have gone obsolete (but can still be bought).

I assume those on here who have been mentioning "life insurance" in lieu of a pension pot to inherit could advise?

I believe that is in respect of taking a single life annuity in place of a joint life one and using a term assurance or whole of life assurance plan paid for out of the increased income.

Rather than discuss potential solutions, it would be better if we knew what you are looking to cover and why (and how long).

GunJack

bigadaj wrote: »

Your pensions would pay out in some form on your death, also you presumably have death in service work benefit as well. Yes, I know that, this is looking specifically at 60+, where death in service may not apply

Just run a quick example on compare the market, this quoted around £25 a month for a 60 year old male non smoker for £50k cover, level term for ten years. That's the sort of thing, but is that whole of life, term, or what?

If that is attractive then go for it.

That's useful, thanks

GunJack

dunstonh wrote: »

I believe that is in respect of taking a single life annuity in place of a joint life one and using a term assurance or whole of life assurance plan paid for out of the increased income.

Rather than discuss potential solutions, it would be better if we knew what you are looking to cover and why (and how long).

No plans for annuities, but it is the term or whole-of-life ins I was interested in, thanks for putting it in context. Is there much difference in costs between the two, say for £50k?