Over 60s cover

gospete

I am 67 and looking to take out some life assurance cover.

I am interested in two options. Either an over 50's plan to cover funeral costs etc. Or take out a fixed term policy say 20 years.

It seems that the fixed term option offers a larger payout for a similar premium.

Has anyone any advice on this?

(The reason I'm interested in taking out a policy is to free up my savings for other things).

Weighty1

It depends what you would want the life insurance to be used for. If it is to cover something like funeral costs then you'd be better off taking a whole of life policy or arranging a funeral expense plan, unless you are absolutely certain of when you are going to die?

A funeral expense plan would generally be better than an over 50's plan as they are normally linked to inflation to ensure the cost of the funeral is covered irrespective of when you die. Depending on the type of plan you arrange the payments can be spread out over a number of years or paid for, like an insurance plan, for the whole of your life (often stopping at age 90).

Robin9

Why ? You won't be paying the bill for your funeral.



Taking out a policy won't free up your savings but reduce them.

gospete

Thanks.

I appreciate that over 60s plans are not considered to be good value.
I suppose my thinking is that they would provide quick accessible cash on death without having to ring fence a proportion of my savings to cover it.

dunstonh

I am interested in two options. Either an over 50's plan to cover funeral costs etc. Or take out a fixed term policy say 20 years.

Why just those two options?

Is your health so poor that a conventional life assurance policy would not offer cover and that is why you are looking at the poorer quality over 50s life insurance version?

Do you actually need life assurance?
Will your estate not have a net asset value to pay it?

gospete

dunstonh wrote: »

Why just those two options?

Is your health so poor that a conventional life assurance policy would not offer cover and that is why you are looking at the poorer quality over 50s life insurance version?

Do you actually need life assurance?
Will your estate not have a net asset value to pay it?

Thanks for the response.

Yes my estate would certainly cover things eventually (selling a house in Spain), but I was looking for something more immediate when required.

If I was looking at conventional life assurance, would term insurance be a good option?

dunstonh

If I was looking at conventional life assurance, would term insurance be a good option?

Only if you died within the term. The other option is whole of life assurance (which you can get in pure life assurance form or investment backed - latter not as good). This is available in monthly premium, single premium or fixed period form (i.e. pay single or over a defined term but retain cover for life). These can be useful for people who want to get the cost out of the way and not be paying it until the day they die.