Life Insurance plans For The Over 50s Are They Worth it?
Posted by admin on 17th September and posted in Life Cover
Summary
This article looks at the over fifties life insurance plans that do not want your medical history but are they worth buying? Carry on reading for more information.
The over fifties life insurance plans are selling like hot cakes.
They promise acceptance without medical questions and are regularly promoted by mature personalities like Jerry Hall and David Frost. Consumers who buy these plans may be paying a lot more in than their recipients will get out.
Guaranteeing a settlement on the insurance holders death, payments start from around eight pounds rising to around £60. Being sold to people between fifty and eighty the settlement is controlled by the payments paid, gender and age when the policy commences.
Significantly, no enquiries about their health are made. Some insurance plans stop after a specific amount of time, but will still be valid until the policyholder dies. In other insurance schemes the premium is taken until the holder dies, on the other hand insurance holders can put more in than they get out depending upon when they die.
Referring to adverts for Axa Sun Life plan, Peter Chadborn of independent financial advisers Masons Financial Planning Ltd says ‘I can’t understand David Frostapproving this kind of product. He is a first-class act, but for this type of plan the same cannot be said.’
A director at Axa Sun Life plan, Joel Winters defends Havers’s role, saying he is only making consumers aware of the insurance plans existence , for which there is a terrific demand .He states, ‘The interest is their affordability because of their assured acceptance procedure and the low payments.’
Still, you could get an even better plan elsewhere buying regular policy on the same terms ‘People could get 3 or 4 times as much for their money from a normal life insurance cover, in return for replying to a few questions.’ Says George Meakins of Clarence financial services.
Not demanding any health questions forces more expensive fees as these plans interest customers with pre-existing illnesses who may pass away before the Insurance Company has covered its cost. Insurance companies also freeze any payouts for the first two or three years to safeguard themselves. A refund of the premiums made is in general repaid if a policyholder departs this life of natural causes in this time.
The Manager of financial services at Marks and Spencer, Harrison Timms, admits that the price may be less for standard life cover but usually by the time you reach your 50’s, many have experienced some sort of medical condition, as a result this is why peopleprefer the over fifties policies. Insurance holders’paying in more than they ever get backis one area he doesn’t agree with. ‘When we put together our plan we decided to put a cap on the premiums,’ he says, meaning once the insurance policyholders have paid the amount insured their paymentscease.
Some over-fifties plans do sooner or later have cut off points, but lots of customers have paid over the oddsbefore they reach this point. Premiums normally cease at 90 with the LV plans and the post office running them for a set term.
The main reason people takeout these policies is to pay interment expenses. However, the ultimate settlement might not be enough money. A pre-payment policy could be a better selection with Old Mutual funeral care offering 3 packages priced between 2,548 pounds and 3,095 pounds. This type of plan can be paid for over three years.
