advice on insurance for parents

marc5180

My father was a long distance lorry driver up until 5 years ago when he developed emphysemia. He couldn't get his breath and was rushed to hospital where he collapsed and was in Intensive care on a life support for a month. He was discharged after 6 weeks and sent home and told that he would have to retire he was 55. My mother works for the NHS 3 days a week, iv always known that they didn't have much money but i realised how little when i overheard my mother on the phone saying she doesn't know how she is going to cope when my father dies. Iv since found out that my dad hasn't got life insurance because no-one will insure him because he is classed as "high risk"
I'm dreading the day that my father dies but if it does happen then my mum will be left penniless as well as heartbroken. Is there any sort of insurance that i can get and set up on her behalf and pay it for her, i know this is very unlikely but i thought i would ask.

seven-day-weekend

Sorry to hear about your parents.

How old is your mum and has she always worked? And how old is your dad now and is he on Incapacity Benefit?

Soubrette

There are insurance plans for the over 50s where medicals are not required so yes they exist. How useful they are I do not know. Personally I would go to an independent financial advisor and ask for some advice. Make sure they are independent rather than attached to a company and only able to sell that company's products.

Best of luck.

Sou

marc5180

Hi my dad turns 60 this month i think he is on incapacity benefit but that will stop next month. My mother is 52 and she looked fter me and my sisters until i was 13 thn she went back to work which was 15 years ago.

Retired_I.F.A.

Royal London... via the post office.
and axa sun life or was it axa and sun alliance I forget.

These are the only ones I know of that will guarentee cover but theres no cover in the first two years. Expect a low amount of cover thereafter, and you'll probably find it's a non profit whole of life plan with no surrender vaue or maturity value ever.

I suggest you go talk to an IFA as cover probably can be had following a medical although the company may add a premium loading or a diminishing debt to the polcy.

seven-day-weekend

Right, well if your dad has always worked and then went onto Incapacity Benefit, he will have either paid or been credited with his National Insurance. Hopefully he will have enough to entitle him to his State Pension at 65.

If your mum worked and then stayed at home to look after children she too will have paid NI and then been credited with Home Responsibilities Protection which will protect her State Pension. Has she also been paying NI for the fifteen years she has returned to work? As she is only 52 her State Retirement age will also be 65.

As both their retirement dates are after 2010, both of them only need to have 30 years worth of Contributions to get full State Pensions. Your mum has plenty of time to build hers up if she hasn't got enough,

Does your mum also have an NHS pension to come?

I don't know about Insurance Policies, but it looks as though your mum should be able to build up a reasonable retirement income. If the worst happens, maybe she could boost her income by doing more hours?

dunstonh

The over 50s plans are pretty useless. They do not require medicals but they don't include pre-existing conditions or have a period of moratorium. After about 10 years of paying into them you realise you have paid more than they will pay out.

The reason you see them on TV and in papers and they make a point that "no salesman will call" is because they are rubbish and the "salesman" as they put it wouldnt recommend it. If you buy direct you have virtually no FOS protection other than processing or t&c breaches. If you choose the wrong product or a naff product its your own fault where no adviser is involved.

The money paid into one of those may be better off redirected into a cash ISA.

If income is limited, then they may be entitled to pension credit.

EdInvestor

marc5180 wrote: »

Hi my dad turns 60 this month i think he is on incapacity benefit but that will stop next month.

This is because he is now eligible for pension credit, which should be higher than incapacity benefit and also gives access to housing benefit and free council tax.Do your parents own their own home?

marc5180

EdInvestor wrote: »

This is because he is now eligible for pension credit, which should be higher than incapacity benefit and also gives access to housing benefit and free council tax.Do your parents own their own home?

Yes they. own the house outright

EdInvestor

My mother works for the NHS 3 days a week

Does she contribute to the excellent NHS pension scheme?If not she should, this will be better than any duff insurance policy in helping her pay for retirement.

I'm dreading the day that my father dies but if it does happen then my mum will be left penniless as well as heartbroken.

Both your parents should check their entitlements to state pension(s) by contacting https://www.thepensionservice.gov.uk to get a forecast (not available until later this year).In the meantime they should find out how many years National Insurance credits they each have - you need 30 for the basic pension.There is a second pension on top of that which they might get called S2P as well. Even if your Mum isn;t eleigible for that she can inherit half of your Dad's, in addition to a full basic state pension.

So if she has her own NHS pension, plus a full state pension, and perhaps some extra SERPS, and they own the house outright, I'd have thought she's got the basics covered.

As a backstop she could always trade down, or do equity release from the house so as to get a further chunk of money to invest to top up her income.

marc5180

Thanks guys you've been a big help and given me things to look at. Much appreciated:beer: