Over 50s Plans Directory – Insurance Plans Reviewed
Below is a brief review of the main Over 50 Plans. For our general review of Over Fifty plans see here. There is a directory of insurance type Over 50 Plans, so you can click through to any you are considering. But our advice is to avoid them if you can possibly. Which? agrees. So does the BBCs Watchdog program and pretty much anyone who has a serious interest in the topic. Yet vast numbers of them are sold each year, nearly all to people who don’t realise that there are much better ways to relieve the family of the burden of finding thousands of pounds for an unexpected (or expected) funeral. For information on proper prepaid funeral plans, go here or call Steve on 0800 0588 240 9-9 7 days a week. Our summary of them is: don’t buy unless you are dying, but you are sure you are going to last through the first year or two depending on the plan. Who would buy an Over 50 insurance plan if they read this realistic Health Warning?
IMPORTANT THINGS TO CONSIDER before buying Over 50s Life Insurance:
- If your circumstances change and you stop paying the premiums, your life cover will end immediately. (NO REFUND)
- Over 50 Life Insurance has no cash in value at any time, so if you cancel it after the first 30 days you will get nothing back.
- With many Over 50s life insurances, you may pay in more than the plan pays out on your death – the “better” plans guarantee to give you back at least what you have paid in, having had it as an interest-free loan from you for years!!
- Your life cover does not start until after the first or second anniversary of your plan start date, as shown in your plan illustration unless you die as a result of an accident, in which case your life cover may begin from the start date shown on your plan illustration.
- An Over 50s life plan is not a funeral plan and therefore may not even cover a significant part of the full cost of your funeral as funeral inflation bites. Over time, although the amount paid out on death is fixed, this amount will reduce in value because of the effects of inflation.
- They will politely pester you every few years to increase the over 50 life insurance in an attempt to keep up with funeral plan costs, but each increase will cost substantially more as you will be older each time. The cost of over 50 life insurance is based on age.
- It is also more expensive than standard life insurance as your health status is not considered. That issue is dealt with by way of the 1 or 2-year “moratorium” during which your death from anything other than an accident will only trigger some sort of refund, not a full payout.
More to the point, the estimated cost of a very simple funeral in 10 years time is £7,128 on the basis that funeral cost inflation halves. The “best” of those plans would cover just over half of the cost. If funeral cost inflation does not slow down, then a simple funeral could cost over £15,000 in 25 years. That would leave your family to find the majority of the cost out of their own pockets. Contrast that with the cost of a prepaid funeral plan! Over 50 Life Insurance is only good for insurance companies I am afraid.
Contrast that with even a very basic proper pre-paid funeral plan where for just over £20 a month over just 10 years you could pay for a very basic plan completely – total cost £2,513 (half the probably cost of an Over 50 life insurance plan). For a direct cremation, the cost may be even less if you pay over a longer term. The cash price of the basic plan is around £1,795, depending on your choice. A more conventional funeral with a service would cost a fair bit more, but once it is paid for there are no further monthly payments. With a combination of some deposit and monthly instalments, a proper prepaid funeral plan is far more reliable and better value.
When Over 50s Plans Go Wrong
- With many insurance-based plans, you can lose everything if the bank fouls up the payments a couple of months before you die.
- With most, there is NEVER a cash value until you are dead, and then only if you haven’t missed any payments and someone realise you have the plan to claim on.
- Inflation is the real enemy, but once they sign you up they will keep trying to get you to increase your contributions. As you get older, the extra cost of increasing the policy will rise dramatically, so it gets harder and harder to keep up with inflation. So whilst a proper prepaid funeral plan may cost more earlier on, in the long run, they are FAR better value.
Over 50s Plans – Read the SMALL PRINT very carefully
Read the small print very carefully if you are considering one. For the odd one that offers inflation linking, check how much the premium is likely to increase by each year. Again, in contrast to a prepaid funeral plan.
Over 50s Plan Directory of (over 50 Life Insurance Plans)
Here is a List of recommended over fifty insurance:
It is a very short list with nothing on it: we think this type of plan only exists because of the incompetence of the Financial Conduct Authority. Decent insurance plans used to be plentiful, but the FCA and their predecessors damaged them and their vendors so badly that they had to be replaced with the dire products we have these days. Fancy a plan with no inflation proofing and no cash value? Thank the Regulators for trashing old fashioned whole of life policies! Regulatory insanity and more bias against those with less cash, a typical FCA trait.
Contrast this with a real funeral plan:
With a prepaid funeral plan our clients can benefit from:
- Outstanding value and security.
- Flexible ways to pay.
- No medical questions.
- Peace of mind, knowing that everything is taken care of in advance.
Funeral cost inflation continues to rise nearly 3 times as fast as general inflation. That means that the “return” on moving some of your savings from a savings account paying interest at Bank Rate could go up nearly fourteen times, resulting in a big saving. A savings account is unlikely ever to keep up with the rapidly increasing cost of funerals.
Over 50s Plans Reviewed
Figures based on £20 per month for a 65 year old in 2017.
|Death benefit||Death benefit payable after*||Age payable until||Total Cost|
|Legal & General Over 50s Fixed Life Insurance Plan||£3,776||1 years||90||£6,000|
|Sun Life Direct Guaranteed Over 50s Plan||£3,710||2 years||Life||£6,000+|
|LV= 50 Plus Plan||£3,571||1 year||90||£6,000|
|Aviva Guaranteed Lifelong Protection||£3,428||1 year||90||£6,000|
Figures supplied by Legal & General based on web quotes 30th November 2016.
*If you die before this the full death benefit will not be paid out, there will be some sort of return of premiums with interest.
Why not check out Pure Cremation?