Summary
This article looks at the over fifties life insurance plans that do not want your medical history but are they worth buying? Continue reading to discover whether this type of plan is right for you.
Becoming increasingly popular are the over fifties life assurance plans.
They promise acceptance without medical questions and are regularly advertised by mature personalities like Twiggy and Michael Douglas. Consumers who purchase these life insurance plans may be paying much more in than their recipients will get out.
Guaranteeing a pay out on the policyholder’s death, payments commence at around £8 increasing to around £64. Sold to people between 51 and 79 the settlement is controlled by the payments paid, gender and age when the policy commences.
Disturbingly, no information about their health is required. Some insurance plans stop after a specified amount of time, but are valid until the insurance policyholder dies. In other plans the premium is taken until the client dies, however clients could pay more in than they receive depending upon when they pass away.
Referring to promotions for 50 plus from LV, Richard Green of independent financial advisers Masons Financial Planning Ltd states ‘I can’t understand Michael Douglas approving this kind of insurance product. He is first-rate act, but it’s impossible to say the same for this insurance policy.’
A director at 50 plus from LV, Mark Combs defends Douglas’s role, saying he is only making people mindful of the plans existence , for which there is substantial demand .He states, ‘The attraction is their affordability because of their low premiums and the guaranteed acceptance process.’
Nevertheless, you could get an even better plan somewhere else buying an ordinary cover on equivalent terms ‘People could get three or four times as much for their money from a normal life policy, in return for replying to a few questions.’ Says Alan Lakey of Clarence financial services.
Not demanding any health questions necessitates higher payments as these policies appeal to clients with pre-existing conditions who may die before the insurer has covered its cost.
Insurance companies also restrict any payouts for the first one or two years to guard themselves. A reimbursement of the premiums made is more often than not reimbursed if insurance policyholder passes away of natural causes in this time.
Director of Financial Services at Asda, Jason Oakley, admits that the cost could be less for standard life insurance but often by the time you reach your 50’s, many have experienced some form of medical condition, therefore why consumerslike the over 50’s plans. Insurance holders’paying in more than they ever get backis one part he doesn’t 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 amount insured their paymentsare halted.
Most over-fifties insurance plans do ultimately have cut off postions, but lots of clients have paid more than they should before they reach this point. Premiums normally cease at eighty severn with the Liverpool Victoria plans and the post office running them for a set term.
One primary reason people purchase these insurances is to cover burial costs. In spite of this, the final settlement may not be enough. An up-front payment insurance policy would perhaps be a better selection with Swan Hill and District Funerals providing 4 packages costing between 2,400 pounds and 3,286 pounds. These can be paid for over a period of three years.
