Life insurance for 0ver 65s and retired

Loobyloo1us

Hi, Both myself and my husband are now retired, mortgage paid etc and would like to take out life insurance. We had critical cover whilst we had the mortgage but this expired when the mortgage was paid off. I have checked the forum pages for anything regarding this but have only found the Life Term assurance which I assume only covers people with mortgages etc. Any advice please would be very much appreciated. Thanks.

Chris_Pollard

Hi, term insurance isn't only limited to those with a mortgage so if you are both seeking cover for a specified period of time, you can still do this. If you didn't want a specified term, you could take out a whole of life policy.

Aretnap

Term insurance just means that the cover applies for a fixed period - 10 years, 20 years or whatever. If you die within that period it pays out. If you're still alive at the end of it, it doesn't.

That's as opposed to a whole of life policy which pays out when you die, regardless of whether that's tomorrow or when you're 100. Obviously this is more expensive than a term policy.

Which is right depends on why you want life insurance. To pay funeral costs? Because one of you is dependent on the other's pension? To reduce your life insurance bill?

ThinkingOutLoud_2

I think he might mean inheritance tax bill in that last sentence. You won't reduce your life insurance bill by taking out another policy :-)

Perhaps, post what you want to achieve and folks can probably give you more specific views.

McKneff

Are you just wanting to ensure that your family have enough for funerals.

Why line the insurance companies pockets. Self fund and no monthly payments whick you may or may not get back.....

My OH and I have some savings, more than enough for 2 funerals.....

Just ringfence say about 6K and Bobs your uncle.

Loobyloo1us

Thanks Aretnap, we want to make sure that our funeral costs are covered and are not a burden to our families. Thanks everyone else who left advice it was much appreciated.
xx

dunstonh

Loobyloo1us wrote: »

Thanks Aretnap, we want to make sure that our funeral costs are covered and are not a burden to our families. Thanks everyone else who left advice it was much appreciated.
xx

Do you not have any assets? Funeral expenses can be paid out of the estate and would not be a burden on family.

ThinkingOutLoud_2

dunstonh wrote: »

Do you not have any assets? Funeral expenses can be paid out of the estate and would not be a burden on family.

Agreed.

First post reveals that they have paid off their mortgage.

So I reckon your estate will stand the funeral costs unless you have something remarkably grand in mind.

Of course, unless you die at the same time, having enough for the remaining partner to fund without selling the house is useful. Do you both have a car or a savings account ....

Perhaps, worth considering how the surviving half would fare beyond the funeral more. That might be a more cogent argument for considering some decreasing term life cover; if say your pensions were unequal or did not pay enough to that spouse.