Over 55's plans

Surfer

We are both over 55 and keep getting sent application forms for over 55 plans. They seem good value if you croak within 15 years as that seems to be the break even point.
After that there is no benefit to you for continuing with payments, but a lot of benefit to the insurer if you cancel. If you live to ninety or longer, the insurer is laughing all the way to the bank
Both my partner and myself should be around for another 20 or more years as we are in our early sixties providing some moron doesn't blow us all up in the meantime. Policy would be pointless then anyway!:rotfl:
However to be serious,we would like some sort of policy that will cover our funeral expenses and perhaps leave a little bit for the kids even if it is only £1000. We don't want them to have to dig into their pockets to do the ashes to ashes thing.
Can any one suggest a policy that will cover the above and won't cost a fortune and can be done jointly. Thanks.

OshayAway

Are you both in good health?

InsideInsurance

You can buy a funeral plan instead, not all are an insurance per say but just a way to fix the costs and pay them up front

dunstonh

We are both over 55 and keep getting sent application forms for over 55 plans. They seem good value if you croak within 15 years as that seems to be the break even point.

They are generally poor value for money and an option of last resort if you are unable to get proper underwritten life assurance.

After that there is no benefit to you for continuing with payments, but a lot of benefit to the insurer if you cancel. If you live to ninety or longer, the insurer is laughing all the way to the bank

One of a number of reasons why an underwritten life assurance plan is better than these limited life insurance plans.

Can any one suggest a policy that will cover the above and won't cost a fortune and can be done jointly.

If you are in good health than a proper whole of life assurance plan would be better value. Ideally one that only requires premiums paid over a defined period. So, if you live beyond a certain age you retain benefit of the life assurance but no longer have to pay premiums.

Surfer

I suffer from rheumatoid arthritis and a lower spine problem both of which will get worse due to ageing and the wife has osteoarthritis in her arms. Although both are painful, neither in my mind are life threatening. Not sure if this has a knock on effect on insurance.
We are probably looking for joint cover of up to £3000 each as we both have small private pensions which will pay out a bit on the death of either one of us. That cover should keep payments affordable for us. Just don't like the idea of paying £4000 plus for £3000 cover or maybe I am being finicky.

dunstonh

I suffer from rheumatoid arthritis and a lower spine problem both of which will get worse due to ageing and the wife has osteoarthritis in her arms.

Unlikely to have a significant impact on the cost of life assurance.

Just don't like the idea of paying £4000 plus for £3000 cover or maybe I am being finicky.

That is why a whole of life assurance plan underwritten at point of sale based on age and health is likely to be better. These over 50s plans are marketed in a way to try and get people not to consider proper life assurance. Indeed, the biggest supplier, AXA Sun life, got told off for its adverts and had to change them.

I remember the line "no salesman will call". The idea of that line was to play to consumer fear of someone calling to sell them something but it really was to denigrate advisers who almost certainly not recommend that product as it would be unsuitable most of the time.

another line was "guaranteed to be accepted". The fact there is no underwriting at point of sale means they are taking on all the high risk cases as well as the clean cases. So, the cost of those higher volume of earlier deaths has to be paid for by those with clean health. They are in effect taking advantage of those with clean health to pay for those who are more likely to die early on.

If you are in poor health, these over 50 plans can be a viable option. However, for most people either pre-paying funeral or a proper whole of life assurance plan will be the better option.

OshayAway

dunstonh beat me to it really. All good points, well made.

I would encourage you to seek out a broker / adviser who has access to several providers for Whole of Life plans, there are a couple of insurers that seem to be exceptionally good on this. Recently arranged one for a lady in her early 60s who would have to live until she was 117 before she paid in more than the benefit payout.

Surfer

As dunstonh is an independent adviser perhaps they would be kind enough to suggest the names of a few companies that offer whole of life assurance or prepay funeral arrangements and allow us to make the decision as that would not reflect on them?
We have never considered life insurance previously as we felt it was a con, but having used all our savings up we now need to re-consider and it is an area where I am very naive.

forgotmyname

If dunstonh advises you on here without knowing all your facts in great detail im sure he/she will get into big trouble.

And also labelled as a spammer maybe.

If you need correct independent advice seek an independent advisor. Surely?

A funeral plan is essential these days. Having recently had to arrange a family members funeral the costs were shocking.
Luckily they had an age concern plan which paid for most of it.

Even then the bill came to nearly £1000 over what they had paid for.
Extra funeral car and food etc.

A life policy was also held but it took us nearly 3 months to sort that out. The company had changed names and policy numbers didnt match the ones we had.
How will they pay for the funeral in that instance?

dunstonh

As dunstonh is an independent adviser perhaps they would be kind enough to suggest the names of a few companies that offer whole of life assurance or prepay funeral arrangements and allow us to make the decision as that would not reflect on them?

Cant do I'm afraid. The FSA treat internet forums exactly the same for regulatory purposes as sitting in front of you face to face. Whole of life assurance plans are regulated products and I cant do it. However, its fair to say that nearly all the big life assurance companies issue them. Some are better than others.

McKneff

Why not just save, in a seperate account enough to cover 2 funerals.
Say £6K. Unless you have some savings that you could put away into an Isa and then forget about it till nature takes its course.

I always think of these things like Currys 3 or 5 year insurance cover.
Never worth the money. Mind, in currys case, you may not need a repair of anything, a funeral, well that's inevitable. But no risk to your money,