quick life assurance calculation question help

evosteo

hi, just wondering does anybody in the industry know how much a policy of a 59 year old female smoker would be worth if she was paying a premium around €15 per month????

thanks in advance for the help

stephen

coylemj

Depends on (1) the death benefit, (2) whether it's a term policy or one with a savings element and (if there is a savings element) (3) how long she's been paying for.

If it's a term policy then it pays out on death only and if the insured is still alive at the end of the term, he/she stops paying the premium and that's the end of it, similar to a mortgage protection policy.

A smoker paying €15 p.m. isn't going to have much in the way of death benefit, let alone have much money left over to save.

Waaaaaaayyyyyy too many missing variables for anyone to give you an answer.

Edit: If the policy doesn't already exists and you're actually asking the question: 'How much life cover would a female 59 year old smoker get for €15 p.m.', the answer is 'sod all'.

Liam D Ferguson

To take a leap and guess about some of the missing variables: a 59 year old female smoker in good health could get a Term Insurance policy covering for €10,000 in the event of death in the next 10 years for €15.21 per month.

But that might be nothing to do with what you're asking...

evosteo

thanks for the replies folks, my close friends mother recently passed away, there's not many documents available but from checking an old and recent bank statement she had been paying a monthly premium to aviva insurance (previously Hibernian p+l) since the earliest statement dated 2005, he is trying to find out or assess what it is in the policy if anything to cover funeral costs etc....

it may be a bit long drawn out because she had no details of this policy around the home due to them moving home a number of times in the last 15-20 years

id say if the funeral costs were covered his mind may rest at ease

Liam D Ferguson

He should call Aviva with his mother's name and date of birth. Anyone there should be able to tell him if she still had a policy and what type it was.

evosteo

Liam D Ferguson wrote: »

He should call Aviva with his mother's name and date of birth. Anyone there should be able to tell him if she still had a policy and what type it was.

thanks Liam, he has already been in touch with them and there's forms on the way in the post but they didn't give him much info apart from that and he was wondering would it be worth much so I thought I'd ask here :-)

coylemj

It depends on when the policy was taken out. For example, €15 (roughly £12) would have been a hefty monthly premium for a term policy taken out back in the 1980s but the death benefit would have been set in stone back then and it's real value would have been eroded by inflation.

So it's very difficult to predict what the death benefit would be today if the policy was still active when she died.

tony81

evosteo wrote: »

hi, just wondering does anybody in the industry know how much a policy of a 59 year old female smoker would be worth if she was paying a premium around €15 per month????

thanks in advance for the help

stephen

It's likely to be absolutely worthless if she's alive.

If dead, the policy may pay a death benefit. The level of the death benefit depends on when the policy was taken out, so could be thousands or tens of thousand.

evosteo

turned out to be €28,000, term was till she was 60 and she passed away aged 59, happy for him now