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  • FIRST POST
    • matucana
    • By matucana 6th Feb 18, 4:18 PM
    • 13Posts
    • 0Thanks
    matucana
    Renew Life Insurance?
    • #1
    • 6th Feb 18, 4:18 PM
    Renew Life Insurance? 6th Feb 18 at 4:18 PM
    My life insurance policy is due for renewal in 3 years when I'll be 50.

    1. I've been told 50 is a 'trigger' for higher premiums, so should I renew before I reach 50?

    2. I'm single and my children have left home but I'd like some cover for funeral costs etc when I die. I'm not a homeowner and unlikely to have any significant savings to leave to my children so would life insurance give them a windfall in the event of my death?
Page 1
    • enjoyyourshoes
    • By enjoyyourshoes 6th Feb 18, 4:30 PM
    • 1,061 Posts
    • 1,302 Thanks
    enjoyyourshoes
    • #2
    • 6th Feb 18, 4:30 PM
    • #2
    • 6th Feb 18, 4:30 PM
    Could it not be better merely to put some money aside in a monthly regular saver, then at maturity recirculate it every year to maximise the compounding of the interest?

    You have no financial responsibilities to justify LI. You are only 50, so have a few years ahead of you saving.

    Just 10 a month on RS compounding over 10 years will give you 1600

    Over 20 years (you will get to 70 no problem) it will get you 4127 , both calculated with 5% interest which you can get with RS with first direct and hsbc to name two banks, santander also,

    After the maturity of each RS front load with the maximum monthly amount in the early months, therefore maximising interest.
    Debt is a symptom, solve the problem.
    • AstroTurtle
    • By AstroTurtle 6th Feb 18, 5:12 PM
    • 157 Posts
    • 536 Thanks
    AstroTurtle
    • #3
    • 6th Feb 18, 5:12 PM
    • #3
    • 6th Feb 18, 5:12 PM
    @enjoyyourshoes

    But what if OP died within 6 months? All he has is 60.

    You can't say "you will get to 70 no problem" whilst giving financial advice against a life. Also life insurance is also to include critical illness sometimes so what if OP is severely ill and can no longer earn and all he has to live off for the next 25 years is 60 and sickness benefits.
    • kingstreet
    • By kingstreet 6th Feb 18, 6:11 PM
    • 33,575 Posts
    • 18,211 Thanks
    kingstreet
    • #4
    • 6th Feb 18, 6:11 PM
    • #4
    • 6th Feb 18, 6:11 PM
    49, 50, 51 they should all be linear increases.

    There is no "cliff-edge" between 49 and 50 IMHO.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • logan77
    • By logan77 6th Feb 18, 11:11 PM
    • 21 Posts
    • 6 Thanks
    logan77
    • #5
    • 6th Feb 18, 11:11 PM
    • #5
    • 6th Feb 18, 11:11 PM
    If you want to guarantee a lump sum for funeral payments then whole of life insurance is the only product to do that. If you die Tomorrow or in 40 year time it will pay the same amount, as long as you keep up your monthly fees.
    I am a Mortgage and Life Insurance Advisor.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • matucana
    • By matucana 13th Feb 18, 2:39 PM
    • 13 Posts
    • 0 Thanks
    matucana
    • #6
    • 13th Feb 18, 2:39 PM
    • #6
    • 13th Feb 18, 2:39 PM
    49, 50, 51 they should all be linear increases.

    There is no "cliff-edge" between 49 and 50 IMHO.
    Originally posted by kingstreet
    I'm 47 - do you think there is any benefit in renewing my policy now to take advantage of a lower premium, or is the difference likely to be negligible?
    • Weighty1
    • By Weighty1 13th Feb 18, 2:52 PM
    • 315 Posts
    • 130 Thanks
    Weighty1
    • #7
    • 13th Feb 18, 2:52 PM
    • #7
    • 13th Feb 18, 2:52 PM
    I'm 47 - do you think there is any benefit in renewing my policy now to take advantage of a lower premium, or is the difference likely to be negligible?
    Originally posted by matucana
    Do you need to renew? Does your existing cover provide appropriate protection over the term it's required?

    The cost difference will be dependent on how long ago you took out your existing plan and whether you've had any changes to your health for the negative, since taking that plan out.
    • darrenrobson
    • By darrenrobson 13th Feb 18, 4:14 PM
    • 18 Posts
    • 611 Thanks
    darrenrobson
    • #8
    • 13th Feb 18, 4:14 PM
    • #8
    • 13th Feb 18, 4:14 PM
    Is there a limit until the life insurance can cover me? Is it 65? for example if I am 49 can I take a life insurance cover for 25 years?
    • Weighty1
    • By Weighty1 13th Feb 18, 5:01 PM
    • 315 Posts
    • 130 Thanks
    Weighty1
    • #9
    • 13th Feb 18, 5:01 PM
    • #9
    • 13th Feb 18, 5:01 PM
    Is there a limit until the life insurance can cover me? Is it 65? for example if I am 49 can I take a life insurance cover for 25 years?
    Originally posted by darrenrobson
    There is no limit. A term assurance plan can run up until a maximum age of 90. Beyond that there are whole of life policies which simply runs until they are either cancelled or death occurs. One big thing to consider though is affordability in retirement as the longer the policy the more it costs.
    • Owain Moneysaver
    • By Owain Moneysaver 16th Feb 18, 12:43 PM
    • 8,199 Posts
    • 9,090 Thanks
    Owain Moneysaver
    If you want to guarantee a lump sum for funeral payments then whole of life insurance is the only product to do that. If you die Tomorrow or in 40 year time it will pay the same amount, as long as you keep up your monthly fees.
    Originally posted by logan77
    However,
    - the value of the payout will be reduced by inflation. Funeral costs may increase by more than inflation. It still leaves the relatives with the work of arranging the funeral etc.
    - the value of the payout may be less than the total amount paid in.

    An installment funeral instalment plan can (various types are available) guarantee the agreed type of funeral will be paid for from the payout, regardless of the cost of the funeral, and once the installment payments are complete there is nothing more to pay.

    Finally, if there is no one willing and able to pay for a funeral, the local council will provide and pay for a public health funeral.
    A kind word lasts a minute, a skelped erse is sair for a day.
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