It is really very easy to leave your spouse/carer/cherished other some extra money when you die. There is no catch. These are utterly brilliant if you have a short life expectancy.
All you need is:
1. To be age 50 or over, up to a maximum of 85 or 90, it varies with company.
2. To have a terminal illness with the likelihood of surviving for at least a further year.
3. Some spare cash (say £20 upwards) each month.
What you do is:
1. Choose an insurer and ask about over 50s life insurance. Tell them your name, address and date of birth. There are no questions about your health. Acceptance is guaranteed (see below).
2. Pay your chosen sum of money to the insurance company (ies) every month without fail, usually by direct debit.
3. Buy more policies if you can afford it – some companies will sell you two or more, and you can buy from many different companies.
4. Write a will (unless you already have one) to distribute the proceeds as you wish.
Simples? Well, yes, it is, but you do have some decisions to make.
Choose an insurer.
a. Google ‘over 50 life insurance’ to see which companies are currently offering this policy. I found ten well-known companies on my first google page. Choose one (or more) after reading b, c and d below.
b. If you think you will live for one year more, but not two, choose a company where the qualifying period is one year. If you think you will live for 2 years or more, you can choose any company (some of them have a qualifying period of 2years). You have to survive to the end of the qualifying period to get the big payout.
c. If you fail to live for the qualifying period of 1 or 2 years most companies will give all your money back and some (two year policies, usually) add a bonus of up to 50% extra.
d. Check the companies’ tables of premiums to see what they will charge you – they are all slightly different.
Here’s an example. Our man Fred, aged 65, pays £50 per month and will pay £600 in premiums in his first year and each year thereafter. Fred dies after 18 months of starting the policy which has a one year qualifying period, so his outlay was £900 and his estate gets £7500. And that is tax free. But if he lives for 10 years he will pay £6000 in premiums to get his £7500 payout. And if he lives for 15 years he will pay (ouch!) £9000 for his £7500 payout.
Finally, how does it work?
Insurance companies make an actuarial calculation about life expectancy of 50+ year-olds in the population as a whole. That includes people who will live for another 50 years and people who will die tomorrow. They are dealing with average life expectancy. We MND sufferers are not average and in that respect have the opportunity to take advantage (for once) of an effect of our affliction.
If you have any doubts about whether these policies apply to you, why not ring the company and talk to the sales team. Tell them you have MND and ask them if that makes any difference when it comes to payout. The answer is always ‘No’.
PS Yes, this is a rehash of an earlier thread, but I've re-written it because it seems that many folk are missing out and it really is too good to miss.
All you need is:
1. To be age 50 or over, up to a maximum of 85 or 90, it varies with company.
2. To have a terminal illness with the likelihood of surviving for at least a further year.
3. Some spare cash (say £20 upwards) each month.
What you do is:
1. Choose an insurer and ask about over 50s life insurance. Tell them your name, address and date of birth. There are no questions about your health. Acceptance is guaranteed (see below).
2. Pay your chosen sum of money to the insurance company (ies) every month without fail, usually by direct debit.
3. Buy more policies if you can afford it – some companies will sell you two or more, and you can buy from many different companies.
4. Write a will (unless you already have one) to distribute the proceeds as you wish.
Simples? Well, yes, it is, but you do have some decisions to make.
Choose an insurer.
a. Google ‘over 50 life insurance’ to see which companies are currently offering this policy. I found ten well-known companies on my first google page. Choose one (or more) after reading b, c and d below.
b. If you think you will live for one year more, but not two, choose a company where the qualifying period is one year. If you think you will live for 2 years or more, you can choose any company (some of them have a qualifying period of 2years). You have to survive to the end of the qualifying period to get the big payout.
c. If you fail to live for the qualifying period of 1 or 2 years most companies will give all your money back and some (two year policies, usually) add a bonus of up to 50% extra.
d. Check the companies’ tables of premiums to see what they will charge you – they are all slightly different.
Here’s an example. Our man Fred, aged 65, pays £50 per month and will pay £600 in premiums in his first year and each year thereafter. Fred dies after 18 months of starting the policy which has a one year qualifying period, so his outlay was £900 and his estate gets £7500. And that is tax free. But if he lives for 10 years he will pay £6000 in premiums to get his £7500 payout. And if he lives for 15 years he will pay (ouch!) £9000 for his £7500 payout.
Finally, how does it work?
Insurance companies make an actuarial calculation about life expectancy of 50+ year-olds in the population as a whole. That includes people who will live for another 50 years and people who will die tomorrow. They are dealing with average life expectancy. We MND sufferers are not average and in that respect have the opportunity to take advantage (for once) of an effect of our affliction.
If you have any doubts about whether these policies apply to you, why not ring the company and talk to the sales team. Tell them you have MND and ask them if that makes any difference when it comes to payout. The answer is always ‘No’.
PS Yes, this is a rehash of an earlier thread, but I've re-written it because it seems that many folk are missing out and it really is too good to miss.
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