Beware - Over 50s V Standard Cover

coupleuk

Just thought Id mention the following;

My 74 year old mother wants to take out a 10 year Life Insurance policy.

She had seen the various (free pen) adverts and was going to sign-up - something like £10/month for £2,000 cover.

When I found out I decided to see what cover I could get online for her.

So, I first looked (thru Quidco for cashback) at the various Over 50 Plans being marketed and their minimum cover was for £10,000. The cheapest cover I found was around £45/month.

I then looked at that companies standard Life Insurance quote pages and thought it would throw me out due to her age - it didnt.

I managed to go thru the quote process and get the same level term 10 year £10k cover as the Over 50 Plan for just £18.30/month.

Personally, I think £18/month is pretty good for a 74 year old.

The various checks were made very quickly and her cover was approved.

By using the standard quote and not the specific Over 50 system, she saved nearly £27 every month !!

Nice to get £80 cashback too.

weighty1_2

Over 50's plan are Whole of Life policies. They guarantee a payout irrespective of when death occurs. The 10-year plan doesn't. That's a fairly important distinction.

I'd be interested to know which providers marketed with a minimum cover level of £10k as most often signficantly less than this. Indeed, the maximum premium is generally £50/month for most providers. It sounds like a PruProtect whole of life plan being marketed as an over 50's plan since PP have a £10k minimum sum assured and for certain clients can be a far better option than an over 50's, provided the client is in good health.

Out of interest, why 10-years? Why not 5, 15, whatever?

dunstonh

My 74 year old mother wants to take out a 10 year Life Insurance policy.

Why?

She had seen the various (free pen) adverts and was going to sign-up - something like £10/month for £2,000 cover.

These over 50s plans are typically an option of last resort for people who cannot get fully underwritten life assurance.

forgotmyname

Over 50 plans have been on watchdog.

You need to remember unlike under 50 policies where you pay for so many years an over 50's one is usually forever.

Your basically betting you live for longer than 2 years where it may payout less than you paid in but not as many years for them to pay out more than you paid in.

Might want to check the smallprint. Payout maybe less if starting the policy at that age?

macwah97

Not sureif this is correct place to post......but. We are looking for either an over 50 plan or other for my husband. He has a rare form of cancer which apparently may not be the cause of his death but he would like some type of cover. He keeps looking at the free pen ones and the fact that they state no medical. No medical concerns me.....what happens if they find out he has this when he dies??? Also how many of these over 50 plans can one have???