Life Assurance Policies

SallyUK

My Mum died recently and she had 5 policies.

One of them was 68 years old and the other 4 were between 25 - 28 years old.

I was really surprised at just how little the sum was that the company said would be paid out - 2993 altogether.

It was hardly worth her paying them all those years.

Sal

ACG

I was given some figures the other day, although ive totally forgottem them, i think it was something along the lines of in the 70s it would cost you about £30 for £10k of cover. (These figures could be totally wrong but it was very expensive is the general jist of what they were saying).
Whereas now you could get more like £100k for the same £10.

kingstreet

What you pay in pretty much determines what you get out.

If you look at IB-type business, like Liverpool Vic, Britannic and Pru back in the "dark ages," the premiums were tuppence hape'ny and the benefits were designed to pay for a modest funeral.

Modern life assurance is as different as chalk and cheese, but to be honest we've all got away from what's important, and both the attitudes and the products of fifty or sixty years ago could teach us a valuable lesson.

I'm in a particularly contemplative mood this afternoon and this follows on nicely from my last post which was about mutuality and how it should be the cornerstone of our nation's financial revival.

I'll get me coat...

property.advert

Like most old policies, the uneducated masses were ripped off by the spivs selling the crap they did.

Even recently I read that there were / are something like 1400 or so types of commission on policies and so forth, of course hidden deep in waffle and glossed over. Sell a life assurance policy on commission and the bloke flogging it gets something crazy like 3 years of your premiums or something plus a little every year, when you think he might get a couple of hundred quid.

ACG

edit: removed

dunstonh

One of them was 68 years old and the other 4 were between 25 - 28 years old.

I was really surprised at just how little the sum was that the company said would be paid out - 2993 altogether.

It was hardly worth her paying them all those years.

You do realise that she probably only paid something like 10p a month for these?