Life Cover Blog

Summary
This article airs the problems with the over fifties plans that do not want your medical history, can they really be financially worth it? Continue reading to discover whether this type of plan is right for you.

Becoming increasingly popular are the over  fifties life assurance plans  and are frequently endorsed by famous people like Twiggy and Nigel Havers. Consumers who take out these plans might be paying far more in than their recipients will get out.

Pledging a pay out on the insurance holders death, payments begin at about 6 pounds escalating to approximately sixty two pounds. Sold to consumers between fifty and eighty the payout influenced by the premium paid, age and gender when the policy starts. Disturbingly, no enquiries about their health are made.  Some insurance plans cease after a certain amount of time, but are valid until the policyholder dies. In other best life cover the payment is made until the holder dies, on the other hand clients may pay more in than they get paid out depending upon when they die.

Referring to adverts for The Post Offices over 50s Life Cover, Justin Parks of independent financial advisers Benson Franshaw Financial Planning states, “I can’t comprehend Nigel Havers approving this sort of product. He is a quality act, but the same cannot be said for this policy.”

The Chairman of 50 plus from LV, Mark Combs defends Parkinsons role, saying hes only making consumers conscious of the products existence , for which there is a terrific demand. He states, ‘”The attraction is their affordability because of their low premiums and the guaranteed acceptance process.’”

However, you could get an even better plan elsewhere buying regular cover on similar terms. ‘People could get three or four times as much for their money from a normal life insurance policy, in exchange for replying to a few questions,’ says James Hicks of Hillmont financial services.

Not demanding any health history imposes higher payments as these cheap insurance protection plans appeal to people with pre-existing complaints who may die before the insurer has covered its cost. Companies also restrict any settlement for the first 1 or 2 years to  shield themselves. A reimbursement of the payments made is in general refunded if an insurance holder dies from natural causes during this time.

The Manager of financial services at Tesco, Jonathan Smith, admits that the cost could be less for standard life cover but usually by the time you reach your fifties, many have suffered some kind of illness, consequently why consumers are fond of the over 50s plans. Plan holders paying in more than they ever get back is one part he does not concur with. ‘When we put together our plan we decided to put a cap on the premiums,’ he states, meaning once the insurance holders have paid the sum assured their payments cease.

Some over-fifties plans do ultimately have cut off points, but most clients have paid more than necessary before this time. Premiums usually cease at 87 with the Liverpool Victoria insurance policy and the PO running them for a set length of time.

One of the major reasons clients takeout these plans is to pay burial charges. In spite of this, the eventual settlement may perhaps not be nearly enough. An up-front payment plan could be a better option with Lincoln funeral care providing 3 packages costing between 2,535 pounds and 3,095 pounds. These plans can be taken out for a period of 3 years.