Over 50s plans

civil12345

My mum is in poor health so these seem like a decent options. I have a couple of questions

1. The limit seems to be a payment of £50 per month - are we allowed to hold multiple policies across different insurers to pay for a higher amount of cover?

2. My mum doesn't really use banking much - would we be OK to have the payments coming out of my account? I'm happy to pay the premiums for this cover, expecting to be the beneficiary when the time comes.

Any thoughts on this would be great.

tacpot12

Don't get an "Over 50" Plan. Get a life insurance policy via an Insurance Broker and save about 75% on the cost of the cover. "Over 50" plans are gimmicks for people who like to buy off the TV.

civil12345

Even for someone with a lot of medical problems?

dunstonh

Over 50s plans are an option of last resort. Is her health so poor that a normal life assurance plan would be rejected or not cost effective?

What is the breakeven point for sum insured vs premium paid?

civil12345

Break even point is around 18-20 years not accounting for inflation.

She has several issues and I don't see her lasting anything like that long. I struggle to see her making 70 (9 years). I've thought about this before but not gone ahead with it. My dad died in October and my mum fell last night and fractured her nose badly. Guess it's just brought this stuff back into view.

Any advice on the questions I've asked please?

forgotmyname

Don't forget the initial period where you cannot claim.

Just had a quick look and several offer plans greater than £50 a month.

If she lives longer than 18 years you could get back less than you paid in.

civil12345

Hi, thanks again for the response. The ones I've looked at seem to be £50 (or less) as she's over 60...between 50 and 60 you can pay more than £50. I'm aware of the risk and that we may pay more than the payout amount. I guess I now have 3 questions

1) Is it OK to have policies with different company's?
2) Is it OK to pay for it from my bank account?
3) What's the 'correct' way to discount for inflation? Obviously it affects the payout but also the monthly contributions.

Any thoughts would be great.

A_Nice_Englishman

One aspect is whether you have an 'insurance interest'. Would you suffer financially in the event of your mother's death or do you benefit from her continued existence?

My understanding of insurance law is rusty, but I don't think you can insure another person's life if neither of the above are true even if you are a relative.

civil12345

Financially, it would be neither. Everything would still be in her name I was just hoping to make it easier by having the payment come from my account.

jonesMUFCforever

Can we ask why you want these policies for your mum? Is it to cover future funeral costs?

civil12345

As a minimum, but potentially to leave a bit more (for me). It's difficult. My mum has never had any money, but after her accident she's told me she has a few thousand saved for funeral costs and sorting things out. I'd rather have something like this in place, so that she can actually spend this money. I'm not sure if that makes sense, but otherwise she won't spend her money or let me spend any money on her.


I know the pitfalls of this type of plan, but it ticks a lot of boxes for us. Any thoughts on the questions I've posed? Thanks