List of Recommended Over 50s Insurance

Here is our list of recommended Over 50s Insurance Companies.

Over 50s insurance always was sold to pay for funerals.  Then a few people started to point out that it was pretty useless for that purpose.   But still 500,000 buy 50 plus insurances every year for that very reason – because they don’t understand how it works. We have said it before, and so has Martin Lewis – Over 50s Insurance is an awful product.

As Martin points out, the main beneficiaries of 50+ Insurance are the insurance companies. Why?

  1. If you don’t keep up the payments (typically until you are at least 85) – they keep all your money.  That could be ten or fifteen years at (say) £20 a month down the tubes.
  2. The non-profit whole of life plans are not set up to keep up with inflation.  You will get exactly what was agree on day one if you die 20 years later. The provider may well come back to you every year or
  3. By that time you are pretty certain to have paid in far more than your family will get back. So you have lent them your money, interest-free, for 20 years or so, then they give MOST of it back, as long as you don’t miss more than one or two payments while you are quietly expiring.
  4. In order for you to “keep up with inflation,” they will keep trying to sell you top up plans of the same awful Over 50s Insurance your have already bought

Over 50s Insurance and Inflation.

With funeral cost inflation running way ahead of normal inflation, in 5 years your 50 plus insurance may be worth one third less than it was when you set it up.  In ten years, less than half the value.  At the same time, the cost of the actual funeral, at recent rates of inflation, would have more than doubled!

That is why we do not have a list of recommended Over 50s Insurance – we recommend it only as a last resort to folk who cannot afford even the most basic of prepaid funeral plans.