Life assurance/insurance over 75 years

D

Ddlite

Registered User
Messages
8
Hi All,
Just wondering if anyone knows if there is any life cover available for my mum and dad both over 75 years old ? My dad was given a substantial mortgage(200K) aged 65 without ANY life cover in place for him or my mum during the 'boom' - just trying to play catch up now for them. Any advice much appreciated
Thanks, Ddlite
 
Wow, a €200,000.00 mortgage at 65 years of age. Love to know the conditions under which that was given by any of the well known banks? Oh yes, he'll get insurance but at what price?
 
noproblem said:
Wow, a €200,000.00 mortgage at 65 years of age. Love to know the conditions under which that was given by any of the well known banks? Oh yes, he'll get insurance but at what price?
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many thanks noproblem, Yes its true and it was boom time stuff and yes no life cover requested! Do you happen to know any companies providing same please?
 
If mortgage was for an investment property and not PPR, then banks rarely asked for life assurance as the property can be sold to clear the debt (hopefully) on death.
 
Ravima said:
If mortgage was for an investment property and not PPR, then banks rarely asked for life assurance as the property can be sold to clear the debt (hopefully) on death.
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Thanks Ravima, however it was (and still is) their PPR! And Pepper have called in the loan! Now they are both pensioners over 75 without life cover and limited means of pay back...
 
Mortgage protection isn't legally required for those over 50, and the costs for a 65 year old would be extremely high.

Realistically at 75 it's going to be prohibitively expensive, even for a fixed term. There's also generally a limit on the amount of cover that would be available at that age.

This was a 10 year interest only loan? What were the plans to repay it?
 
Thanks RedOnion, Yes you are correct it was a 10yr FT interest only loan to purchase their home. The plans were to have my fathers business pay full loan at end of term. However, when the 'boom' went 'burst' - so did his business.. its liquidated now....
Would you happen to know of any companies/brokers who would provide cover? Thanks
 
Any large broker should be able to help. However the maximum age is 85.

Have a read of the following, it's from a broker (no connection).

2 Alternatives To Over 60s Life Assurance in Ireland | Lion.ie

Think you can't get life insurance because you're in your 60s? Think again, as long as you've no major health issues, I can get you cover!
lion.ie

However, mortgage protection is only a part of your solution. Your parents are 200k in debt, and have 'limited means'. Did you look into a PIA the last time you posted?
 
Ddlite said:
many thanks noproblem, Yes its true and it was boom time stuff and yes no life cover requested! Do you happen to know any companies providing same please?
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I'm sorry Ddlite but I don't know of any. Contact some of the major companies with all your information at hand, explain the situation and see what they say. Where is the property, city, town, rural area? What's the value of property now? Are both your parents getting the full pension and have they any other savings, means, etc? Not a good place they're in but neither was it any sort of a good idea to buy a house at their age with not enough to pay it back. One has to see the lenders situation as well. Would you give someone what your parents are looking for with their situation? PIA perhaps?
 
I am confused.

Why do you want life cover?

The mortgage term is up and they should repay the loan.

Life cover has nothing to do with it, unless you expect one of them to die in the near future. And if you expect that, then life cover will be even more expensive.

How much is the house worth? If there is a lot of equity, i.e. if the house is worth at least three times the mortgage, it might be possible to get a life loan although I don't think any Irish lender is doing them at the moment.

Are any of the children in a position to buy the house from them or remortgage their own home to clear the loan?

Brendan
 
Thanks All,
All good points - and you are correct, they are separate issues.
1. The Loan.
They have engaged with a PIP through MABS and are working their way through that process. However, options are limited for both parties given age, LTV (loan 193k, market value 180K), repayment capacity (pension only) etc... I have raised 140k and went to Pepper to purchase in full settlement but they said no. I cant get any more finance... nor can any other siblings.
2. Life cover.
Yes they will both inevitably die given their advanced age. I am attempting to arrange some form of cover for them as the PIA may take a few more years. I contacted one of the main brokers who stated that before the 74th birthday is the cut off point for any form of cover.
I thought there might be an expert on here working in that field with specialist knowledge who can advise?
Many thanks,
Ddlite
 

That broker was wrong. If I assume that both your parents are under 76, non-smokers and in excellent health, I can get a quote for €193,000 cover for up to 9 years. A policy covering them both for that amount in the event of death in the next 9 years would cost ... wait for it ... €979 per month. If you just wanted cover for, say, a 5 year term, it would cost €769 per month. A lower level of cover would cost roughly proportionately less, so half the cover would be roughly half the price and so on.

In the circumstances you describe, I think spending any money on life cover would be mad.
 
I would ask Pepper to finance the purchase of the property by you and/or your siblings.

i.e. forget about the write-down and look to convert the €193k ‘problem’ mortgage to a performing one.
 
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