Summary
An article which looks at the over fifties life insurance policies that do not want your medical history but are they worth buying? Continue reading this article for lots more information.
The over fifties life insurance plans are selling like hot cakes.
These plans promise acceptance without medical history and are frequently sponsored by mature personalities like Petula Clark and Michael Parkinson. Consumers who take out these plans could be paying much more in than their recipients will get out.
Guaranteeing a settlement on the insurance holders death, premiums start from about £6 escalating to around 64 pounds. Being sold to people between 50 and 80 the payout depends on the premium paid, age and gender when the policy starts.
Significantly, no enquiries about their health are made. Some policies cease after a certain amount of time, but are valid until the policyholder dies. In other plans the premium is made until the client passes away, nevertheless insurance holders could pay more in than they get out depending upon when they die.
Referring to advertisements for The Post office’s over 50’s Life Cover, Karl Simms of independent financial advisers George Miles and Partners says ‘I can’t understand David Frostsupporting this sort of insurance plan. He is a quality act, but the same cannot be said for this policy.’
A director at The Post office’s over 50’s Life Cover, Mark Howes defends Clooney’s role, saying he is only making consumers conscious of the insurance plans existence , for which there is a terrific demand .He says, ‘The appeal is their affordability because of their guaranteed acceptance process and the low premiums.’
However, you could get an improved deal elsewhere buying regular policy on the same terms ‘People could get three or four times as much for their money from a normal life policy, in exchange for answering a few questions.’ Says Alan Lakey of TGB financial services.
Not asking any health history imposes much dearer premiums as these policies appeal to people with pre-existing illnesses who may die before the insurer has covered its cost. Insurers also freeze any payouts for the first 2 or 3 years to shield themselves. A refund of the payments made is more often than not repaid if an insurance holder departs this life from natural causes during this time.
Director of financial services at Direct Line, Jason Oakley, admits that the cost could be less for ordinary life insurance but generally by the time you get into your fifties, many have undergone some type of ill health, therefore why consumersfavour the over 50’s plans. Insurance holders’paying more in than they can ever get outis one part he doesn’t concur with. ‘We put a cap on the premiums,when we assemble our plans,’ he states, this means that once policyholders have paid the amount insured their premiumsare halted.
Most over 50s plans do sooner or later have cut off times, but most policyholders have paid over the oddsbefore they reach this point. Premiums normally stop at ninety with the Liverpool Victoria insurance policy and the PO running them for a set term.
The main reason people takeout these insurances is to pay funeral charges. On the other hand, the ultimate settlement might not be enough. A pre-payment plan would be a better alternative with Co-operative funeral care providing five packages priced between 2,548 pounds and 3,339 pounds. These can be paid for over a period of three years.
