Over 50s Guaranteed Life Cover Plans

kasiwalker

I took out a policy through Ulster Bank over 18 months ago when I was 60. I pay £20 per month and was covered for £3559 to assist cover for my funeral when needed.

Today I had a flyer through my door from the Post Office which I decided to see how it compares with the one I have.

Both are insured through AVIVA.

I notice that as at todays date the Post Office would cover me for £4284 (as a 61 year old) - a much larger amount than I have through Ulster Bank. I would have though it goes down with age.

My question is why would my own bank let me receive an inferior amount when higher amounts through the same insurer are available.

InsideInsurance

Because they want to make more profit than the Post Office does?

If you are male then prices have also gone down slightly this year because of the change in EU law

anamenottaken

kasiwalker wrote: »

I took out a policy through Ulster Bank over 18 months ago when I was 60. I pay £20 per month and was covered for £3559 to assist cover for my funeral when needed.

Today I had a flyer through my door from the Post Office which I decided to see how it compares with the one I have.

Both are insured through AVIVA.

I notice that as at todays date the Post Office would cover me for £4284 (as a 61 year old) - a much larger amount than I have through Ulster Bank. I would have though it goes down with age.

My question is why would my own bank let me receive an inferior amount when higher amounts through the same insurer are available.

Because they make their money on the account you have taken out - through the premium you are paying.

I wonder why people take out such policies. Do they not have the sum insured available? Do they prefer to hand over the premium each month rather than have it to spend on something or to build up a "funeral expenses fund" which would still be available in emergencies in life?

dunstonh

My question is why would my own bank let me receive an inferior amount when higher amounts through the same insurer are available.

Bank products in insurance, pensions and investments are rarely value for money. Plus, their distribution costs tend to be higher.

Also, be aware that the products may not be the same. Some have a maximum premium paying age (where you retain benefits but no longer have to pay beyond a certain age) whilst others require you to pay for life.

Most over 50s plans are a waste of money and should really be an option of last resort. A proper underwritten policy is likely to be much better value for money if your health is not too bad.