The Life Insurance Guard

Summary
An article which looks at the over fifties plans that do not want your medical history but are they worth buying? Read on for more information.

Becoming increasingly popular are the over  fifties life assurance plans. With no medical questions they guarantee acceptance and are often sponsored by mature personalities like Judi Dench and Nigel Havers. People who take out these plans might be paying a lot more in than their recipients will get out.

Pledging a settlement on the insurance holders death, payments begin at around £8 increasing to about £60. Sold to consumers between fifty and eighty the payout influenced by the premium paid, age and gender when the policy begins. (These sorts of policy are available as online quotes for life insurance.)

Significantly, no questions about their health are asked.  Some payment plans stop after a certain amount of time, but will still be valid until the insurance holder passes away. In other insurance plans the premium is made until the holder passes away, in spite of this clients can put more in than they receive depending upon when they die.

Referring to promotions for The Post office’s over 50’s Life Cover, Karl Simms of independent financial advisers Benson Franshaw Financial Planning states ‘I can’t understand Michael Parkinsonendorsing this type of insurance product. He is a quality act, but it’s impossible to say the same for this insurance policy.’

The Chairman of Asda’s over 50’s Life Cover, Mark Combs defends Parkinson’s role, saying he is merely making consumers conscious of the plans existence , for which there is a terrific demand .He states, ‘The appeal is their affordability because of their low premiums and the guaranteed acceptance process.’

Nevertheless, you could get an improved deal elsewhere buying regular insurance policy on the same terms ‘People could get three or four times as much for their money from a regular life insurance policy, in exchange for responding to a few questions,’ says Alan Lakey of Clarence financial services. We recommend that you search online for the cheapest life cover.

Not demanding any health questions necessitates much dearer fees as these life assurance plans attract clients with pre-existing illnesses who may die before the insurer has covered its cost. Insurers also restrict any payouts for the first 1 or 2 years to  shield themselves. A reimbursement of the premiums made is normally repaid if a policyholder passes away of natural causes in this time.

The Manager of financial services at Tesco, Gev Lynott, admits that the cost could be less for standard life insurance but often by the time you reach your fifties, many have experienced some sort of medical condition, thus why peoplefavour the over fifties plans. Insurance holders’ paying more in than they can ever get out is one area he doesn’t concur with. ‘When we put together our plan we decided to put a cap on the premiums,’ he says, this means that once policyholders have paid the amount insured their payments cease.

Most over 50s insurance plans do ultimately have cut off postions, but most customers have paid more than necessary before they reach this point. Premiums normally stop at ninety with the LV insurance policy and the post office running them for a set term.

The main reason people purchase these insurances is to pay funeral expenses. On the other hand, the ultimate pay out may not be nearly enough. An up-front payment plan would perhaps be a better alternative with Swan Hill and District Funerals providing 4 packages priced between 2,535 pounds and 3,195 pounds. These plans can be taken out for a period of 3 years.