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Life Insurance Policy - over 70

(32 Posts)
Patsy70 Mon 07-Oct-24 12:49:29

I am 77 years old, haven’t any life insurance, have private and state pensions, not much in the way of savings and no mortgage. I’m considering taking out a life insurance policy simply to cover a modest funeral. Alternatively, I could just put money into my savings account each month. Could I ask if others have been in a similar situation and, if so, what did you do?

M0nica Mon 07-Oct-24 13:49:48

Put the money in a good savings account. Easier, less difficult for your family to access and safer.

Georgesgran Mon 07-Oct-24 14:13:48

Yes, I too would just recommend a savings plan.

Most of the over 50’s insurance plans that are advertised on tv have a qualifying period of up to 2 years before the policy comes into effect.

Patsy70 Mon 07-Oct-24 15:54:58

Thank you for responding. I will definitely go the route of the savings plan, having researched the life insurance option.

RillaofIngleside Sun 13-Oct-24 11:13:56

My father in law received £1900 less than he had contributed, having lived to 96. Got to the point where you don't know whether to stop and lose the money or keep going so you don't.

David49 Sun 13-Oct-24 11:24:18

Not life insurance a savings plan is much better.

SpringsEternal Sun 13-Oct-24 11:32:10

I've taken out a financial LPA so my daughter can access my bank account etc when I shuffle off. (Mind you, I haven't signed it yet, lol, must get that done.)

win Sun 13-Oct-24 11:56:11

Most banks do a regular saving plan with up to £250/300 per month, if you have your current account with them. They give you 6/7% return, I always have one or two on the go, that would almost cover a funeral. Otherwise you could just take out a funeral plan, you can pay for that by instalments too in some cases.

Mojack26 Sun 13-Oct-24 12:10:57

Agree A good savings plan

albertina Sun 13-Oct-24 12:37:18

Thanks so much for asking about this as it's exactly what I have been worrying about this week. I have a life insurance policy but it only runs till I am 77. I have defied the norms in my family by living past 70 ( 74 next Feb) so it's something that has been on my mind.

Psalmody Sun 13-Oct-24 13:38:59

My mum fully prepaid a funeral plan which was absolutely brilliant, and covered most of the eventual costs.

Sue65 Sun 13-Oct-24 13:40:31

LPA ends with your death
Then you have to access money via probate
Perhaps your daughter could be a joint holder of a savings account so it would take her signature only when you die

polnan Sun 13-Oct-24 14:18:44

I was thinking along your lines SpringsEternal.. my savings are in the joint names of my youngest son and myself,, so he can easily get it, and I have a prepaid funeral, cremation, I dont want anything fancy, no flowers etc.. and they, ie family can do what they want if they want to expand it.. well I won`t be there to see or hear it will I!

Guntew183 Sun 13-Oct-24 14:47:43

An LPA is only valid when the person is still alive, it ends when you die. I have a savings account.

Georgesgran Sun 13-Oct-24 15:11:36

I think you might have an Accidental Death Policy albertina?
A Life (really should be called Death) Policy should cover you until you die.

I have the accidental one, which will end when I’m 75. I took it out in ‘87 when I started driving a nightmare daily journey to take the DDs to school! It wasn’t expensive - only £3 a month, but covered our £26K mortgage, should the worst happen to me.
I still pay it, never know what might happen in the next 18 months!

LovesBach Sun 13-Oct-24 15:22:07

We have simple funeral plans - should have done it so much earlier in life, but the premiums are quite reasonable and the funeral expenses will be covered, however much costs increase. The loss of three close friends over a short time made us think, and at least now our DC will not have to worry about funding funerals for us.

Flakesdayout Sun 13-Oct-24 15:51:27

Thank you for this thread as my life insurance cover expires this month. I think it was originally tied into my old mortgage which I've already repaid. I was thinking about another life policy but now I'm thinking along the lines suggested and investing that money I will be saving on life insurance into a funeral plan or into a savings plan. I did have a critical illness cover which didnt pay out as the critical illness I had 5 years ago wasn't critical enough! Hindsight is a wonderful thing and I should have taken better advice

theworriedwell Sun 13-Oct-24 16:12:25

I'd opt for saving but I know someone who has purchased their funeral and are paying for it in installments. They are happy it will be paid for and apparently paying now means the price will remain the same. I'm not sure what happens if they die before they've paid it off.

Norah Sun 13-Oct-24 16:26:15

To me life insurance is to pay mortgage, we finished mortgage 40 yrs ago, as we married young. Apart from mortgages and business reasons/taxes - perhaps saving may be best and have ease of access.

We save small pots of money for health, dental, funerals, pets, holidays - maybe that would accomplish what you desire?

keepingquiet Sun 13-Oct-24 16:28:42

I don't have life insurance either. I did when I was younger and had dependents and a mortgage, but now I'm debt free with some savings and a my own home I don't see the point. The funeral money would just come from my estate, though I have thought about paying directly for the funeral in advance.

Win I would love to know which accounts are now paying 6-7% on savings accounts as the highest I can find are below 5% just now.

Kim19 Sun 13-Oct-24 16:33:25

Gave No 1 son cash to cover the direct cremation I have requested, to save the wait for probate. Told son No 2 of this. All good.

grandtanteJE65 Sun 13-Oct-24 16:50:19

Have you looked into a pre-paid funeral plan?

I don't know where you live, but I do know that an old school friend of mine who lives in Scotland has one.

Here (Denmark) any firm of undertakers can and will give you information about one - the money you put into it, cannot be appropriated if you should owe money in taxes and can be made immediately available to pay your funeral expenses, unlike any other money you die possessed of, and which your heirs will have to wait for.

Madmeg Sun 13-Oct-24 17:05:57

We "bought" funeral plans some years ago, the main attractions being a much reduced cost as we were nowhere near old age and the fact that our family simply contact the named funeral directors who then immediately take over as per our wishes. Other methods all involve making an application for the money from your estate and an inevitable delay.

GranPepp Sun 13-Oct-24 21:53:55

M0nica

Put the money in a good savings account. Easier, less difficult for your family to access and safer.

what makes you think accessing savings account of a deceased person is easy? It might be sometimes but depends on the circumstances. I worked in financial services for 40 years and it's complicated

GranPepp Sun 13-Oct-24 22:01:44

Sue65

LPA ends with your death
Then you have to access money via probate
Perhaps your daughter could be a joint holder of a savings account so it would take her signature only when you die

Yes, probate in England and Wales, called Confirmation in Scotland. POA does stop when the person dies. Then it is probate/Confirmation. However bank or building society will release money from the deceased's account before probate/Confirmation for what is called "death bed expenses" - funeral/funeral tea etc. You just have to produce the bill