Is Life Insurance Cover Worth It For The Over Fifties?

Summary:
This article looks at the over fifties plans that do not ask questions about your medical history, can they really be financially worth it? Continue reading this article for lots more information.

Becoming increasingly popular are the over fifties life assurance plans, these plans promise acceptance without medical history and are often promoted by mature personalities like Cilla Black and Michael Douglas. Consumers who buy these plans might be paying far more in than their heirs will get out.

Assuring a pay out on the insurance holders death, premiums start from around seven pounds increasing to around 62 pounds, that’sd cheap life insurance cover. Sold to people between fifty one and seventy nine the settlement influenced by the premium paid, gender and age when the policy begins.

Ominously, no information about their health is required. Some insurance plans stop after a specific amount of time, but may still be valid until the insurance policyholder passes away. In other insurance plans the premium is taken until the policyholder passes away, in spite of this clients could pay more in than they get paid out depending upon when they die.

Referring to adverts for Asda’s over 50’s Life Cover, Leon Myers of independent financial advisers CBK Colchester states ‘I can’t comprehend how Nigel Havers can sanction this kind of insurance product. He is an outstanding act, but for this type of plan the same cannot be said.’

Managing Director at Axa Sun Life plan, Mark Howes defends Clooney’s role, saying he is simply making people conscious of the life assurance plans existence , for this particular plan there is a substantial demand. He states, ‘The appeal is their affordability because of their assured acceptance procedure and the low payments.’

Nevertheless, you could get a better deal elsewhere buying regular plan on the same terms ‘consumers could get three or four times as much for their money from a normal life policy, in exchange for responding to a few questions.’ Says James Hicks of TGB financial services.

Not asking any medical history forces more expensive fees as these plans appeal to clients with pre-existing complaints who may die before the insurer has covered its cost. Insurance companies also restrict any settlement for the first 1 or 2 years to shield themselves. A reimbursement of the premiums made is in general refunded if a policyholder passes away from natural causes during this time.

The Manager of financial services at Asda, Harrison Timms, acknowledges that the cost could be less for standard life assurance but usually by the time you reach your fifties, many have undergone some sort of illness, consequently why clients choose the over fifties plans. Insurance holders’putting in more than they ever retrieve is one sphere he doesn’t concur with. ‘We limit the payments, when we compile the plan,’ he says, meaning once the insurance holders have paid the sum assured their payments stop.

Many over 50s insurance plans do eventually have cut off postions, but many policyholders have paid more than necessary before this time. Premiums usually stop at 85 with the LV insurance policy and the post office running them for a set term.

One of the major reasons clients purchase these insurances is to pay funeral costs. Yet, the eventual pay out may not be nearly enough. A pre-payment insurance policy would perhaps be a better option with Co-operative funeral care supplying 5 packages priced between 2,548 pounds and 3,339 pounds. This type of plan can be paid for over three years.

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