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Two topics I have been asked about quite a lot lately, from people wondering if they are still available.
The first is the Over 50’s life cover, where there are no medical questions and guaranteed cover. Yes it is available. The premium is calculated based on the age and level of cover chosen. The cover is active after 2 years but if the life assured died within the first two years, all premiums are refunded, so nothing is lost. (If death occurs as a result of an accident during the first two years, the full sum assured is paid out!)
The second topic is over 60’s releasing equity from their home. Yes it is still available. There are many people over 60 who have little or no mortgage on their home but may be in need of funds for a number of reasons (commonly, these are often making the home safer and more comfortable, buying a car to aid independance, planning a few holidays or simply helping family.) It is often viewed that the property will be left to family at some point in the future anyway and this is a way to release some of the value earlier when much needed. The amounts that can be released depend on the age of the house owner and the value of the property. They do not have to make any regular payments at all, however, they can, if they wish, pay regular, irregular or lump sum payments entirely at their discretion, without penalty. It is done similar to a regular mortgage in that a solicitor is required and buildings insurance is put in place but the difference is that their is no income requirements or similar underwriting. If they choose not to make any repayments, interest is simply added to the capital and the balance is cleared from the proceeds of the sale of the property either in the event of death or just choosing to sell the property. For example, a 65yr old with a house worth €250,000 can release €50,000 for any purpose that they wish.
If you have any questions in relation to these topics or wish to get quotations without any obligation, please contact me on 087-6414570 or PM me here on Mumstown. Dave.
Dave Kavanagh QFA
Independant Financial Consultant.
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