Is Life Insurance Cover Worth It For The Over Fifties?
Summary
This article airs the problems with the over fifties plans that do not want your medical history but are they financially worth it? Carry on reading for more information.
The over 50’s Life Insurance Plans are becoming extremely popular.
They promise acceptance without medical questions and are regularly promoted by famous people like Jerry Hall and Michael Parkinson. Consumers who buy these plans may be paying far more in than their beneficiaries will get out.
promising a pay out on the policyholder’s death, payments start from around £8 increasing to about sixty pounds. Being sold to people between fifty and eighty the payout is controlled by the premium paid, age and gender when the policy begins.
Significantly, no enquiries about their health are made. Some insurance plans stop after a specific amount of time, but are valid until the insurance holder passes away. In other insurance plans the payment is taken until the holder passes away, in spite of this insurance holders could pay more in than they get paid out depending upon when they die.
Referring to adverts for The Post office’s over 50’s Life Cover, Leon Myers of independent financial advisers CBK Colchester states ‘I can’t understand George Clooneysupporting this style of life insurance plan. He is first-rate act, but the same cannot be said for this policy.’
The Chairman of The Post office’s over 50’s Life Cover, Joel Winters defends Douglas’s role, saying he’s simply making consumers aware of the products existence , for this particular plan there is a substantial demand .He states, ‘The draw is their affordability because of their low premiums and the guaranteed acceptance process.’
Nevertheless, you could get a better deal elsewhere purchasing regular cover on identical terms ‘People could get 3 or 4 times as much for their money from an ordinary life insurance cover, in exchange for responding to a few questions.’ Says Alan Lakey of TGB financial services.
Not demanding any health history imposes much dearer fees as these plans interest clients with pre-existing conditions who may die before the company has covered its cost. Life Insurance companies also freeze any settlement for the first two or three years to guard themselves. A refund of the payments made is normally refunded if a policyholder departs this life from natural causes during this time.
Director of financial services at Tesco, Jonathan Smith, acknowledges that the cost could be less for standard life assurance but often by the time you reach your 50’s, many have undergone some type of illness, therefore why consumerschoose the over fifties policies. Policyholders’putting in more than they ever retrieveis one area he does not agree with. ‘When we put together our plan we decided to put a cap on the premiums,’ he states, this means that once the insurance holders have paid the sum assured their premiums cease.
Most over-fifties life insurance plans do sooner or later have cut off points, but many clients have paid over the odds before this time. Premiums normally stop at 90 with the Liverpool Victoria plans and the PO running them for a set length of time.
One primary reason people purchase these plans is to pay funeral expenses. However, the final pay out may not be nearly enough. An up-front payment plan would be a better selection with Swan Hill and District Funerals supplying 3 packages priced between 2,535 pounds and 3,304. This type of plan can be paid for over three years.