Over 50s insurance.

Graeme_Moore

My wife is 57 and is 3 years diagnosed with Alzheimer's. They say the average life expectancy is 8years from diagnosis. I have one over 50 plan to cover funeral costs etc, but taking emotions out of it I'm thinking it would make sense to take out a few more. Is there a limit on the number I can take out? Given she lives the average I can't lose on this can I?

dunstonh

Over 50s plans are an option of last resort. Proper life assurance plans are nearly always better value but are subject to health questions. Have you compared what they would offer?

You can have multiple over 50s plans with different underwriters.

Given she lives the average I can't lose on this can I?

Depends on the premiums and the sum insured plus the uncertainty of life expectancy. Remember the average will include many who die earlier than that but also many that die much later.

Do you need to have these plans?

System

Is your wife able to apply herself ?

Graeme_Moore

No, she is unable to do the most basic of tasks now. It's hard to write stuff like this without seeming i am cashing in on her I'll health but I'm trying to be ruthless and provide myself with a financial future. Her decline works indicate another 2-3 years so I was calculating 36x£100 payments (3 separate plans £33 each). Total payments £3600 Death benefits would be about £25000. Am I right on this? Can I take out unlimited policies? Does she have to be the one to take them out? (I have full power of attorney).

Graeme_Moore

I don't need these plans but given she lives 2 years over the expectancy for get illness I will only be 50 years old and although it feels like I'm cashing in on get illness I have to think about my future. Paying out £100 a month I can afford especially if after 3 years that £3600 pays out £25000. Right?

teddysmum

When these plans are advertised on tv, there is now a hastily spoken warning that you may receive less than you paid in and leaflets state that you cannot claim before a specified time has lapsed .


Also, are there not questions about health , as insurers are there to make money by taking risks, so they won't want to provide a policy that is bound to pay out at their cost ? (You can't take vet/human health insurance to cover an animal or person, that already has an ailment that you can claim for or everyone would go without insurance and just take it if they wanted a pay out...and that's not how insurance works; companies would be bankrupt in days)

Quentin

teddysmum wrote: »

....Also, are there not questions about health , as insurers are there to make money by taking risks, so they won't want to provide a policy that is bound to pay out at their cost ? (You can't take vet/human health insurance to cover an animal or person, that already has an ailment that you can claim for or everyone would go without insurance and just take it if they wanted a pay out...and that's not how insurance works; companies would be bankrupt in days)

You miss the point about these policies.


They do not ask questions about health!


That's why they are referred to as "last resort" policies.


You usually don't risk too much if you die too soon (they usually pay back any premiums if you die in a specified time after taking out the policy)


(The problem with them is they are very expensive if you live a long time after taking them out!!)

System

I have just set up a policy with British seniors they payout either the cover amount or if you have been paying for years over that they will payout everything you have paid.

OP the only reason i ask about your wife is that there was some legal stuff they need to read to the policy holder not sure if not being able to do that would be an obsticle.

Graeme_Moore

No, she wouldn't be able to apply herself. But I have full power of attorney over her health and financial matters so would that not entitle me to act on her behalf?

agrinnall

Graeme_Moore wrote: »

No, she wouldn't be able to apply herself. But I have full power of attorney over her health and financial matters so would that not entitle me to act on her behalf?

Yes it does, but your actions have to be for her benefit. It's a debatable point whether a payout to you on her death is a benefit to her, although the fact that you are paying the premiums I would say swings things in your direction.

Weighty1

agrinnall wrote: »

Yes it does, but your actions have to be for her benefit. It's a debatable point whether a payout to you on her death is a benefit to her, although the fact that you are paying the premiums I would say swings things in your direction.

An individual always has an insurable interest in their own life so I don't think it could be argued that it isn't in her interests to have the cover.