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Life insurance as funeral payment
LadyKaty
Posts: 1 Newbie
If you have an elderly relative or friend who have a policy with the Royal Liver Assurance/Royal London Plus (Industrial Branch Policy) who have a life policy which they have taken out to help cover funeral costs please get them to check this.
The Royal Liver Assurance/Royal London Plus have STOPPED paying the discretionary bonus payable on either death or maturity from May 2011. Please get them to check the GUARANTEED BENEFIT as this is now the only thing they will receive. Example - Elderly lady paid 22 years of payments @ £4.00 per month - she has now died and they will only pay £660 much less than what she has paid in and no discretionary bonus. Please check that they are not paying into a policy where the guaranteed sum is much less that what they are paying.
So if you died before May 2011 your relatives would have some help with the funeral costs. If you died after May 2011 - HARD LUCK your relatives will have to find the costs elsewhere. These policies were taken out by families who could barely afford them but wanted to protect their families from funeral bills - Large Business hits the vunerable yet again!!!!!!
The Royal Liver Assurance/Royal London Plus have STOPPED paying the discretionary bonus payable on either death or maturity from May 2011. Please get them to check the GUARANTEED BENEFIT as this is now the only thing they will receive. Example - Elderly lady paid 22 years of payments @ £4.00 per month - she has now died and they will only pay £660 much less than what she has paid in and no discretionary bonus. Please check that they are not paying into a policy where the guaranteed sum is much less that what they are paying.
So if you died before May 2011 your relatives would have some help with the funeral costs. If you died after May 2011 - HARD LUCK your relatives will have to find the costs elsewhere. These policies were taken out by families who could barely afford them but wanted to protect their families from funeral bills - Large Business hits the vunerable yet again!!!!!!
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Comments
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Business hits the vunerable yet again!!!!!!
Not really. Most insurers lost money on these plans post 1988. That is why industrial branch doesnt really exist nowadays and the home service companies have gone. The over 50s plans that do still exist are dire and frequently result in people paying more than the eventual payout.
Business is business. It is not charity.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
However, the OP has a point that anyone who has these 'types of' policies should look at what they are actually getting from them and whether or not they are suitable...I work in finance
Anything posted on this forum is for discussion purposes only and should not be considered financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation0 -
True. However, I'm surprised they were still paying the premiums. Most of the insurers with old industrial branch premiums under £5 have stopped collecting the money but retained the benefits.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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If it was discretionary then there should not have been any reliance on it.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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magpiecottage wrote: »If they think they were never suitable that is ground for complaint.
They may have been suitable at the time of purchase and not suitable now.
Everything you buy is like that and it really is an individuals responsibility to check these things on a regular basis. Or pay someone to check for them.I work in finance
Anything posted on this forum is for discussion purposes only and should not be considered financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation0 -
Didn't realise Royal London had acquired Royal Liver until we made a claim on my Mother's life insurance last month. My Father passed away in 1984 and the same policies realised almost £2000 - now they are paying less than £500. One policy taken out in 1948 for £41.85 life cover, (Industrial Branch), paid £51.11.0
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