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  • FIRST POST
    • Former MSE Rebecca
    • By Former MSE Rebecca 21st Apr 15, 10:02 AM
    • 113Posts
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    Former MSE Rebecca
    Over 50s Life Insurance Plans Guide Discussion
    • #1
    • 21st Apr 15, 10:02 AM
    Over 50s Life Insurance Plans Guide Discussion 21st Apr 15 at 10:02 AM


    Hi,

    We've written a new Over 50s Life Insurance Plans guide for the website and we'd love your feedback.

    How did you find the info? Was it useful? Do you have any other tips you would add?

    Thanks for your help,

    MSE Rebecca
Page 2
  • Louise F
    David Perry, yes check out some prepaid funeral plans that will actually hold the value of the cost of everything at the time - inflation proof. My Mum has put any extra now into an Isa; but has in fact decided to leave her remains to science. It is a radical idea and will not suit all, my Mum signed up some time ago with Manchester Universities' Science Department and more recently I updated everything for her and it is even in her will. The advantages are, It doesn't cost anything at all, and you will be helping Medical Science. The disadvantages are, you will not have a funeral as such, as nothing is given back to the family for burial, the science department hold a service and scatter the ashes in their remembrance garden - I think this happens so many times a year and all the family can go,) Also you do need to have a backup plan, a plan B, so that when Heaven calls and the Science Department do not have room to take you in at that point in time other arrangements can be made very quickly. So you should have some money put away for this as a back up plan. Currently in the North West a simple funeral may cost around £3,700 - the cost has gone up very dramatically in the last 10 years or so. Please discuss it with your family and let them know what ever you decide to do, they should know of your last wishes - you know you can talk about it once - get it all written down and everyone knows what to do when the time comes and its dealt with and put to bed so to speak. I think most universities will have science departments who look for donors = oh the other point to make is if you donate your body on death you cannot also be an organ donor at the same time - they take you intact soon after the time of death collected by their own firm of Funeral Directors - (which they pay for) ... I hope I have given you some food for thought in making a decision. Best Wishes Louise F
  • HaggisForBrains
    Is it legitimate to take out these plans if you have been diagnosed with a terminal illness? I've read the ts&cs, and the MSE guide that says they can be lucrative if you play the odds (and live past the minimum qualifying period of 12 - 24 months), but it just seems a bit too good to be true, and not 'in good faith'.
    Originally posted by modernmillie
    My late wife Isobel was diagnosed with terminal cancer in 2009, at the age of 52, and given 2-3 years to live. Over the next year she took out a total of eight policies, one with each of the major life companies in this field, with premiums totalling ~£400 per month, and a total sum assured of just over £160,000. In fact she survived to age 56, and when she died I was able to claim successfully on all of the policies. We were able to do this because we had both worked in the life and pensions industry, and had studied the policy details very carefully. The qualifying period is designed to weed out most people with a terminal diagnosis, but even if the assured dies within this period, there is generally no loss, since there is always a guaranteed return of premiums, sometimes more. These companies make so much money out of the people who are being warned against the use of these policies, that they can afford to stand the loss created by the small numbers of people like Isobel who effectively "select against the insurer", to use the trade term (kind of like betting on a certainty).

    If you are relatively young (over 50 of course) and have a terminal diagnosis, then this is a great way to help your surviving spouse or family. There is no catch, and you will not be acting in bad faith. You will have the bonus of putting one over on the insurance industry, though that is small compensation for the loss of life. If by great good fortune you survive and are declared "cured" (very unusual, though remission is more common), then you will have wasted your premiums, but will no doubt be thankful to be alive. Take care about cancelling if you are only in remission.

    Cheers,

    Colin.
    • sarahswan1
    • By sarahswan1 13th Jun 15, 11:14 PM
    • 12 Posts
    • 4 Thanks
    sarahswan1
    We have just taken out a policy based on exactly the same decision making process as Colin. My husband is 53 and in very poor health, although he doesn't yet have a terminal diagnIsis. We've now got a policy from Royal London, which will pay out the maximum amount of just under £25000 if he dies after one year. If he dies before then they will give us 1.5 times the premiums we have paid. That's a great deal better than any savings scheme. In our situation it's definitely worth thinking about
    • Mr.Jelly
    • By Mr.Jelly 7th Jul 15, 12:39 AM
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    Mr.Jelly
    I'm sure I read somewhere that people who go into a care home with local authority funding have all their income taken to fund their care apart from a small personal allowance of £23. Life insurance payments are not considered an allowable expense, so people without savings are forced to stop paying their premiums when they go into care. A pre-paid funeral plan, on the other hand, is an allowed expense.
    • Williams18
    • By Williams18 25th Mar 16, 10:58 AM
    • 1 Posts
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    Williams18
    Very useful, how about the British seniors plan, they pay out all monies paid in regardless of how long you live!!
    • dunstonh
    • By dunstonh 25th Mar 16, 12:17 PM
    • 88,131 Posts
    • 53,358 Thanks
    dunstonh
    Very useful, how about the British seniors plan, they pay out all monies paid in regardless of how long you live!!
    Originally posted by Williams18
    Again, an option of last resort. Underwritten life assurance is better value for money. As long as your health does not make life assurance too expensive or a rejection. over 50s life insurance plans should only be used where life assurance is not an option.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • JLW07
    • By JLW07 8th Jun 16, 1:51 PM
    • 1 Posts
    • 0 Thanks
    JLW07
    British Seniors - Over 50s Life Insurance
    I've come across the British Seniors Guarantee - New Lifetime Payback Guarantee which, as it states, guarantees to return the amount you've paid in.

    Not sure whether to believe the hype - has anyone else heard of this policy?
    • rs65
    • By rs65 8th Jun 16, 7:28 PM
    • 5,110 Posts
    • 2,432 Thanks
    rs65
    I've come across the British Seniors Guarantee - New Lifetime Payback Guarantee which, as it states, guarantees to return the amount you've paid in.

    Not sure whether to believe the hype - has anyone else heard of this policy?
    Originally posted by JLW07
    See the post 2 before yours.
    • Pablo Banez
    • By Pablo Banez 14th Sep 16, 10:41 AM
    • 2 Posts
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    Pablo Banez
    So what is the answer, both my wife and i havent any life insurance and we are both in our late 50s. If these plans are such poor value what is the answer to cover for anything happening.
    Plenty of negatives, but no positives
    • dunstonh
    • By dunstonh 14th Sep 16, 1:02 PM
    • 88,131 Posts
    • 53,358 Thanks
    dunstonh
    So what is the answer, both my wife and i havent any life insurance and we are both in our late 50s. If these plans are such poor value what is the answer to cover for anything happening.
    Plenty of negatives, but no positives
    Originally posted by Pablo Banez
    Take out a normal life assurance plan (typically a term assurance but some may have a whole of life assurance need). These are better than the over 50s life insurance.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Pablo Banez
    • By Pablo Banez 15th Sep 16, 3:17 AM
    • 2 Posts
    • 0 Thanks
    Pablo Banez
    Take out a normal life assurance plan (typically a term assurance but some may have a whole of life assurance need). These are better than the over 50s life insurance.
    Originally posted by dunstonh
    So, how many years would you suggest? and which company?
    • csgohan4
    • By csgohan4 15th Sep 16, 8:23 AM
    • 3,482 Posts
    • 2,163 Thanks
    csgohan4
    So, how many years would you suggest? and which company?
    Originally posted by Pablo Banez


    How ever many years you want and can afford.


    MSE have a section on Life insurance.


    http://www.moneysavingexpert.com/insurance/?tab=sect20
    • dunstonh
    • By dunstonh 15th Sep 16, 10:16 AM
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    • 53,358 Thanks
    dunstonh
    So, how many years would you suggest? and which company?
    Originally posted by Pablo Banez
    We don't know what your financial needs are. So, its impossible to recommend a term without knowing.

    Advice on company to use is a regulated activity. So, I can't say. Plus again, we don't know your needs and circumstances. So, couldnt narrow it down anyway.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • MrMook
    • By MrMook 11th Nov 16, 8:57 AM
    • 1 Posts
    • 0 Thanks
    MrMook
    Dad
    Hi

    I don't know what to do for my Dad. He's 69, a heavy smoker, he's had a heart attack and a stroke so I don't think life assurance is an option because he is on a low income. He lives in social housing and has no assets. Would an over 50s plan work for him?
    • Quentin
    • By Quentin 11th Nov 16, 9:09 AM
    • 31,513 Posts
    • 15,527 Thanks
    Quentin
    Yes he will be able to take one out if that's what you mean
    • broxbourne
    • By broxbourne 15th Nov 16, 12:15 PM
    • 6 Posts
    • 1 Thanks
    broxbourne
    Hi - for conformation please ... as per article our Aunt received a letter from Sun Life to increase her policy from £8.00 to £12.00 per month, as payout would not cover her eventual funeral .. She had being paying £8.00 a month since 1993 .. we have just realised they cancelled this in 2010 and sold her a new policy to take it's place ... she has lost 17 years previous payments ... is this right and just ?
    • dunstonh
    • By dunstonh 16th Nov 16, 12:33 PM
    • 88,131 Posts
    • 53,358 Thanks
    dunstonh
    Hi - for conformation please ... as per article our Aunt received a letter from Sun Life to increase her policy from £8.00 to £12.00 per month, as payout would not cover her eventual funeral .. She had being paying £8.00 a month since 1993 .. we have just realised they cancelled this in 2010 and sold her a new policy to take it's place ... she has lost 17 years previous payments ... is this right and just ?
    Originally posted by broxbourne
    Policies are not cancelled and new ones put in place without some input from the policyholder.

    It may well have been a letter asking her if she wanted to increase it or she may have approached them. You need to ask her.

    As the plan has no investment element, it doesnt matter whether she has been paying 17 years or 17 months. She has lost nothing. Just like paying household insurance or car insurance.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • jintyb
    • By jintyb 18th Mar 17, 3:18 AM
    • 1,727 Posts
    • 17,849 Thanks
    jintyb
    Sun Life over 55 - Mis-sold?
    In 2010, during a meeting with their bank regarding investments,my parents asked their Financial Advisor for advice re funeral plans. They had banked ( and still do) with this bank for many years and dealt with and trusted this particular woman at the bank. She advised they take out a funeral plan which turns out to be a over 55 policy from Sun Life. These have only come to light during a review of my parents affairs. I feel they have been badly advised as this advisor had access to all their financial information and it was quite apparent at that time that they had more than enough in assets to cover any funeral costs. A financial "health
    check" was not carried out and my parents were not made aware at the outset that these policies would have no surrender value and that they would be paying them until they died. They are currently paying £67.50 per month each. I hope someone can advise as to what to do. I feel I should write to complain on their behalf. They are both now in their late eighties.
    Thanks in advance.


    you will always be rich enough to be generous.
    • dunstonh
    • By dunstonh 18th Mar 17, 1:26 PM
    • 88,131 Posts
    • 53,358 Thanks
    dunstonh
    In 2010, during a meeting with their bank regarding investments,my parents asked their Financial Advisor for advice re funeral plans. They had banked ( and still do) with this bank for many years and dealt with and trusted this particular woman at the bank. She advised they take out a funeral plan which turns out to be a over 55 policy from Sun Life.
    Financial advisers tend to put people off these types of plans unless its an option as last resort. These types of plans are typically not sold by advisers and more commonly via adverts on TV or newspapers or unregulated individuals. What bank was selling Sun Life plans?

    A financial "health
    check" was not carried out and my parents were not made aware at the outset that these policies would have no surrender value and that they would be paying them until they died.
    As these plans are not usually sold by advisers (unless absolutely necessary) you would not expect a formal review process. Was this particular woman" at the bank actually an adviser or a clerk?

    They are not investment plans so there is no reason to say they do not have an investment value.

    I feel I should write to complain on their behalf. They are both now in their late eighties.
    What does the statement of demands and needs say in regards to this purchase?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • jintyb
    • By jintyb 18th Mar 17, 1:50 PM
    • 1,727 Posts
    • 17,849 Thanks
    jintyb
    Hi dunstonh,
    Yes she was a Financial Adviser at the Nat1onw1de.


    you will always be rich enough to be generous.
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