life cover - where can I get independent advice on this absolute shambles..

bittersweet

Hello
my parents are in a right mess and ive only just got to the bottom of this life insurance theyre paying. Bear with me because I knw next to nothing about insurance and my parents have been paying this for years without question so it seems they dont really know what theyre doing.
In a nutshell, they bought a guesthouse years ago. At the time, the bank insisted they take out life insurance (although they didnt insist on the bank insurance and advised them to shop around). They spoke to a high street advisor and took out decreasing life cover which would pay off the mortage on the business premises (which was also their home at the time). To coin a phrase , it 'didnt go well' and they had to take mortgage holidays (that in itself was a huge c**k up by the bank as as they thought they had arranged it, didnt pay for a few months then got letters from the bank asking why they hadnt been paying it. The manager who arranged it for them had left the company).
So - back to today - they have sold the business and bought a house with a mortgage. Theyve carried on paying the life insurance but because theyve had these mortgage holidays (which equated to about a year), the mortage hasnt decreased as much as it shouldve. I called the insurance company and should one of them die today, the payout would be 30k short of what is needed to pay off the mortgage, Whilst my mother is still fit and able to work, the same cant be said for my dad.
They are paying £60 a month and as my mum is a carer for my dad, they cant really afford to be paying that, but obviuosly are worried about not having this 'safety net' even if it is short of what is needed to clear the mortgage. If they were to sell the house they live in they would nt get enough to buy somewhere else outright and wont get another mortgage with my dad being ill. They have also adapted their house so my dad can get around so seling this would be a very last option for them.
So (sorry to go on) - is there another type of policy they should be looking into? This would be instead of the cuurent one as they cant afford to pay two. Thye ve been looking at these ones advertised on TV for over 50's as they are thinking that with my dads health issues they wouldnt be able to get any other policy than the ones that say 'no health checks' but it looks like these policirs arent suitable to cover what is owed on the house
Ive asked at Age UK - they said that as my dad is ex forces, I should contact SSAFA... which I did and they have no idea why Age Uk have referred us to them.
Unfortunatly I am in no position to help as I am on maternity leave from my part time job - in an ideal world where I was working full time, the answer would be for me to help them out or buy it off them but thats not likely .

dunstonh

life cover - where can I get independent advice on this absolute shambles..

An independent adviser.

is there another type of policy they should be looking into?

There are around 13 types of life assurance in the UK. Although only a handful are mainstream nowadays. It is likely either a level term assurance or decreasing term assurance (or combination) would suit their needs. However, health is likely to be an issue with pricing.

Thye ve been looking at these ones advertised on TV for over 50's as they are thinking that with my dads health issues they wouldnt be able to get any other policy

These are an option of last resort. They should not be used if conventional life assurance is a possibility. Have they been turned down on conventional life assurance?

Is keeping the existing plan more viable if it was taken out prior to the health issues?

bittersweet

Thanks for your reply. Sorry i dont think I made myself clear with where can I get independant advice... I think what I meant to say was how can I ensure that any advice they do get is actually independant as Im quite sure my dad could be sold ANYTHING

Im not sure what you mean by conventinal life assurance - I think thats what they have now. They were accepted on this polcy because both in good health at the time.
Ill have to discuss the viability of the current plan. It seems a lot of money to be paying if its not going to pay the mortgage off and its decreasing in value.
I really dont think theyll get more affordable cover now theyre older .

ACG

No advisor (Whole of Market of IFA) can or SHOULD be selling an incorrect policy. The only reason they would, would be for the commission but it is not worth risking a career over just to earn a few extra quid.

There are many types of life insurance - Level term assurance, decreasing term assurance, family income benefit, whole of life (as you have seen on the TV) etc. However, the time to take out any policy is before you become ill. So whilst there may be various types of policies, its likely either going to be too expensive or difficult to get for what they want/need at a price lower than they are currently paying.

On a side note, health questions do not come up on a mortgage, so your father' health should not affect the mortgage, but I realise that is probably a last resort coming from an adapted home to having to move.

Without looking at the paperwork, I would be surprised if they would get more cover for less elsewhere without reducing the term.