Do we need life Insurance for disabled brother - Help please

clairebear81

Im hoping somebody can please point me in the right direction for this please or know who I could ask. My fathers oldest brother is disabled and has just turned 65 and recently my dad and his brothers have been wondering if they should get life insurance for him for in the sad time that he passes away. Both of their parents died a long time ago so they are wondering that as his only relatives would they have to pay the funeral bill. One of his brothers is his carer and gets paid for this so my question is will the brother who is his carer be expected to pay, would it be all of the brothers that would be expected to pay and if so could they get life insurance to cover this or as both parents have died would any of them have to pay?
Hope this makes some kind of sense.......
Thank you

forgotmyname

Funeral plan maybe another option?

They cannot force people to pay for the funeral, but if the council pay for it then expect a funeral at fairly short notice and they will probably give a time/date that nobody else wants.

Does he have any savings?

clairebear81

Thank you, I don't think he does. Ill mention a funeral plan to them. Hopefully its something we wont need for a while but were not getting any younger

mattk_180

Funeral plan definitely sounds like the best way forward.


Don't wish to appear rude or blunt as we don't know the situation but they would also have to consider whether the disability is likely going to be/be related to the cause of death. Most/all insurance policies will exclude existing conditions without paying through the nose so life insurance may not be cost efficient or even of use at all.

Chris_Pollard

Most funeral type policies do not ask any health, or medical questions but have a moratorium whereby if death occurs in the first x months (usually 12)- the benefit will not be paid but the estate will receive a return of the premiums paid. After the moratorium period has passed, and as long as premiums have been paid, the benefit will be payable. However, the insured must be of sound mind, i.e. have the legal capacity to enter into a contract. They are usually only available to people over the age of 50, and are probably not the best value whole of life insurance for those who are in good, or average, health.

Weighty1

Chris_Pollard wrote: »

Most funeral type policies do not ask any health, or medical questions but have a moratorium whereby if death occurs in the first x months (usually 12)- the benefit will not be paid but the estate will receive a return of the premiums paid. After the moratorium period has passed, and as long as premiums have been paid, the benefit will be payable. However, the insured must be of sound mind, i.e. have the legal capacity to enter into a contract. They are usually only available to people over the age of 50, and are probably not the best value whole of life insurance for those who are in good, or average, health.

These funeral type plans you talk of are actually the over 50' life insurance plans and work in a completely different way. A funeral expense plan does allow you to claim within the first 12-months but unless the funeral has been completely paid for within that time frame the family would be expected to cover the shortfall.

Mojisola

Weighty1 wrote: »

These funeral type plans you talk of are actually the over 50' life insurance plans and work in a completely different way.

And they should never be bought! People end up paying more into them than they get out.

Weighty1

Mojisola wrote: »

And they should never be bought! People end up paying more into them than they get out.

Not always. There are several plans of this type which if taken out at an early enough age will ensure a client never pays in more than they will receive (although inflation will reduce the real world value of the payout).

In addition to that, they are a valuable source of cover for those individuals who have medical issues preventing them from taking medical underwritten insurance plans.

Generally though, they should be the option of last resort.

Mojisola

http://www.moneysavingexpert.com/insurance/over-50s-life-insurance

Best avoided.

ThinkingOutLoud_2

Hi there,

This is several questions rolled into one. Or at least it may be easiest to answer in that way.

Firstly, it may help to have an idea how much you would need for his funeral. Obviously there is a wide potential - but this may help.
https://www.moneyadviceservice.org.uk/en/articles/how-much-does-a-funeral-cost

So assuming as already posted, you are not keen on the council paying / arranging...

Secondly, usually a person's estate can be used to pay for the funeral. It is not clear and no need to post the answer, but not a solution if the brother in question may not have any or enough assets to cover that desired funeral cost.

So with a desired cost in mind, the question is how to fund:-

- the various insurance options are described already, but have complications be that his health status, a moratorium period or how much you pay or over how long. But, they may be best. Or not.
- OR if you have no immediate expectation of his passing, how long would it take for you to "accumulate" the cost you identify? This carries a risk if he dies sooner - but there is no insurance company whose profits you bolster

So finally aside the way you achieve the funds - where is the Premium or ongoing saving sum going to come from persists.

How much could you put away of his benefits? Would all of you be willing to also put £5-10 a month into an account for example to get to that peace of mind sooner.

The good news is you are thinking now not after the event.

Weighty1

Mojisola wrote: »

http://www.moneysavingexpert.com/insurance/over-50s-life-insurance

Best avoided.

"yet for many they're a seriously bad bet."

excerpt from the article.

Not for ALL.......for "many". For "some" they are the best and only option. And no offence to Martin but he isn't a regulated adviser is he? He can use journalistic licence to say whatever he likes without being held accountable to the regulator.

I stand by my original comments.