Summary
This article airs the problems with the over fifties life insurance plans that do not ask any medical questions ,can they really be financially worth it? Read on for more information.
Becoming increasingly popular are the over fifties life insurance plans and they are often promoted by well known stars like Cilla Black and David Frost. People who purchase these life insurance plans might be paying far more in than their beneficiaries will get out.
Pledging a pay out on the policyholder’s death, premiums begin at about 7 pounds increasing to around 64 pounds. Being sold to consumers between 51 and 79 the settlement influenced by the premium paid, gender and age when the policy commences. Disturbingly, no information about their health is required. Some policies cease after a specified amount of time, but will still be valid until the insurance policyholder passes away. In other insurance schemes the payment is made until the policyholder passes away, on the other hand policyholders could pay more in than they get out depending upon when they pass away.
Referring to promotions for 50 plus from LV, Peter Chadborn of independent financial advisers Investment Box states ‘I can’t comprehend Nigel Havers approving this kind of product. He is an outstanding act, but the same cannot be said for this policy.’
The Chairman of 50 plus from LV, Mark Howes defends Havers’s role, saying he is just making consumers mindful of the products existence , for this particular plan there is a substantial demand. He states, ‘”The interest is their affordability because of their guaranteed acceptance process and the low premiums.’”
Yet, you could get an improved deal elsewhere buying a run of the mill cover on the same terms . ‘People could get three or four times as much for their money from a regular life insurance cover, in exchange for replying to a few questions,’ says Alan Lakey of Clarence Financial Services.
Not asking any medical questions forces higher fees as these plans interest clients with pre-existing complaints who may die before the company has covered its cost. Companies also freeze any settlement for the first two or three years to safeguard themselves. A refund of the payments made is more often than not reimbursed if the insurance policyholder departs this life from natural causes during this time.
Director of financial services at Asda, Jason Oakley, states that you may pay less for regular life cover but often by the time you reach your 50’s, many have experienced some type of medical condition, therefore why clients favour the over 50’s policies. Insurance holders’ paying in more than they ever get back is one area he does not concur with. ‘When we put together our plan we decided to put a cap on the premiums,’ he says, meaning once policyholders have paid the sum assured their premiums are halted. We beleive that it is best to to get online quotes for life insurance. Do that and you’ll get better life insurance.
Most over 50s plans do sooner or later have cut off times, but lots of clients have paid more than they should before they reach this point. Premiums normally cease at 90 with the Liverpool Victoria policy and the post office running them for a set length of time.
One primary reason people takeout these policies is to cover burial costs. Yet, the eventual pay out might not be enough. An up-front payment plan could be a better option with Swan Hill and District Funerals offering five packages priced between 2,699 pounds and 3,304. This particular type of plan can be taken out for 3 years.