Great deal insurance over 50’s Plan.
Great Deal Insurance is heavily promoting over 50’s life insurance. Generally speaking our opinion of over 50s insurance isn’t high – we really have trouble seeing why anyone buys most of the products!
Great Deal Insurance does at least make it pretty clear what some of the disadvantages of their over 50’s plan are:
1) Premiums payable until your 90th birthday.
2) You could pay more in total than the plan pays out on your death.
3) If you stop paying, you won’t get anything back.
4) Your amount of cover is fixed when your plan starts; inflation will reduce the value.
5) If you die in the first two years the plan may only pay out the premiums you’ve paid.
With funeral inflation running more than twice as fast as normal inflation, most people buying the type of plan Great Deal Insurance are selling are really looking to prepay for their funeral – not set up a plan which might or might not be enough, and might or might not pay out! When you are 85 and your fouls up your direct debits again, you may not remember in time that your great insurance deal will be dead if you don’t pay them VERY quickly – and you won’t get any cash back for all those years you have been paying in!
Not so Great Deal Insurance.
We think most people would prefer a proper prepaid funeral plan – even if does mean buying it in monthly instalments.
Great deal insurance also offer a deal with Dignity Funerals, which may make life slightly easier, but Dignity may not be the appropriate funeral provider for you – though they are perfectly respectable.
It is interesting to note that the claim form reserves the right not to pay the claim until a Grant of Probate is given. This can take 3 to 9 months or more, and undertakers will not be keen to wait that long to be paid! Worse still, it might be necessary to obtain a grant of probate purely to get the benefit from the Great Deals Insurance Over 50’s Life insurance: the same is true of other Over 50s life insurance plans if they are not set up in the right way.