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What I've Discovered (1): Life Insurance for the terminally ill.

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    What I've Discovered (1): Life Insurance for the terminally ill.

    Acquiring a disability usually means acquiring a new financial outlook. I guess wealth must come after health as a priority. But only just. I’m going to start with a way of helping ‘wealth’. See what you think.

    Many insurance companies offer standard life insurance. Some also offer a select version of life insurance, calling it ‘Over 50s Life Cover’ or something similar. The standard cover takes into account the health of the applicant, and if you have been diagnosed with a terminal disease it is unlikely to help you very much. The ‘Over 50s’ does not ask about your health. In fact, the only question asked is your age – premiums are based solely on age, and the insurance companies hope to make a profit because of their knowledge of life expectancy in the population as a whole.

    Premiums for ‘Over 50s’ cover are higher than for standard cover, of course. And policies seem to be limited to a maximum monthly premium of £50 (which might buy a man aged 65 an insured value of around £7,500). But then, they mostly seem willing to sell you more than one policy. And you can buy from any or all of the companies if you want.

    All ‘Over 50’ policies have a qualifying period, either 12 or 24 months, as far as I can see. If the insured person dies within the qualifying period, the insurers return all premiums you have paid to you. Some insurers add a bonus to the return of premium, usually a generous 50%. If you die after the qualifying period, they pay out the full sum insured. Some pay out, even during the qualifying period, if the death is caused by accident. There are a few other exclusions and you should read them, but none were relevant to me.

    So, if you're over 50 and know you are going to die and expect to last twelve months, and want to provide cash for your spouse or estate, check out policies offered by LV (Liverpool Victoria), Saga and Post Office Counters, all offering a 12 month qualifying period and simple return of premiums.

    If you think you’ll last 24 months, have a look at Axa and, through Tesco, Provident Life. These two offer 50% extra on return of premium but the qualifying period is so much longer.

    Finally, this market is not static. I have found new policies offered for the first time in the last few months. Google ‘Over 50s Life’ to see what has developed since this was written in April 2011. Happily, my first four policies are just coming to the end of their 12 month qualifying period and because I bought two policies from two companies my wife will get an extra £32,000 to help her survive without my pension.

    Feel free to ask questions of me. I am no expert and there is no guarantee, so please understand that I’m telling you what I have done and I am not advising you to do the same or similar. You must investigate the policies for yourself and make up your own mind. As I did.

    I've taken this from my blog, find the whole thing on

    Last edited by ; 21 April 2011, 15:28. Reason: Addition of link

    I do hope Robin your wife does get the amount expected. But insurance companies will if they can by hook or by crook try to get out of the payment after such a small mount of time. Im sure when they recieve a death certificate that states MND then alarm bells will ring and they will check your join date and have your date of diagnosis checked too.
    I work for and insurance company and know how they operate.
    So approach life cover with caution as the last thing your partner needs is a legal battle once you have passed away.
    Im only 41 so i cant join anyhow


      Hey, Z3 Driver,
      Thanks for your response. You'll be happy for me to know that I am advised by my brother, a re-insurance actuary, that pre-existing conditions are definitely included in this insurance. One of the companies offering 'over 50s' has, as it's CEO and actuary, a friend of his who confirms this to be the case, and the literature is quite clear and actionable - premium depends on date of birth only and the advertising specifies 'no medical history required'. I really have no qualms about any aspect of this insurance but anyone in doubt could always ask the sales agent and get it in writing. Why not do that, what's to lose?


        insurance policy on mortgage

        It is worth looking into your mortgage insurance

        Cheers, Barry