Over 50s Plans Directory – Insurance Plans Reviewed.
Below is a brief review of the main Over 50s 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 programme. For information on proper prepaid funeral plans, go here. 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 (genuine) Health Warning?
IMPORTANT THINGS TO CONSIDER
If your circumstances change and you stop paying the premiums, your life cover will end immediately.
Over 50s 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.
Your life cover does not start until after the 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 begins from the start date shown on your plan illustration.
This life plan is not a funeral plan and therefore may not cover the full cost of a funeral.
Over time, although the amount we pay out on death is fixed, this amount is likely to reduce in value because of the effects of inflation.
If you live long enough the total premiums you have paid may be greater than the amount payable on death
More to the point, the estimated cost of a simple funeral in 25 years time is £7,328 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. That would leave your family to find the majority of the cost out of their own pockets.
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 50s plan). 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 an 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 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.