The Daily Expresses Crusader lays into Over 50’s “Funeral” Insurance Plans
Over 50s Insurance plans are the same, but many insurance based “funeral” plans can prove to be appalling value for money. Here is a little of what the Crusader had to say (or read the whole article) followed by our recommendations.
“Funeral plan costs: Beware paying more than you will get back
Ageing parents by-and-large prefer not to rake over plans they made years ago to cover their funeral costs.
But their decisions can look very different to their offspring.
Two complaints to Crusader reveal the outrage adult children can feel on discovering how much their mum or dad is paying for a plan compared to the final sum due.
Paul W’s parents signed up to a policy 17 years ago when they were in their early 50s paying £30 a month. So far they have contributed over £12,000 but each plan will only pay £2,240 each when they die.
Andrew S’s mum Joan is in a similar position in that she agreed to a £10-a-month plan after his dad died in 2000. Now 84 she cannot remember whether she saw an ad and contacted a company, or she was cold-called, but the sale involved a phone conversation after which she was sent papers that she signed and returned.
Joan has contributed £1,800 and when she dies it will pay £1,280.
If Paul’s parents or Joan cancel their premiums, all benefit is lost.
The terms are fixed too.
The policies’ descriptions, “whole-of-life, non-unit linked” mean little to the holders and scarcely more to their children who, perhaps understandably from their parents’ perspective, were not part of the decision-making.” We at the Prepaid Funeral Review agree wholeheartedly with the Crusaders verdict on Over 50s Insurance.
We believe that a proper prepaid funeral plan is the best:
At the Prepaid Funeral Review, we strongly believe that a proper prepaid funeral plan is the best way to go if you can possibly afford it. With starter plans available for less than £20 a month, most families can afford to start making at least some provision for a family funeral. The beauty of that particular plan is that it can be used when any member of the family dies, so it is fully transferable. It is not designed to pay for everything, but it will make a darn good contribution, and substantially cut the cost and worry to those left behind.
Buying Over 50s insurance may result in your paying in more than your family get out (never mind inflation) or losing the lot if you miss payments. Prepaid plans are much better in every respect than poor value Over 50s life insurance.