Over 50s Life Insurance Plans Guide Discussion

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Over 50s Life Insurance Plans Guide Discussion

edited 30 November -1 at 12:00AM in Insurance & Life Assurance
71 replies 28.8K views
173 posts
edited 30 November -1 at 12:00AM in Insurance & Life Assurance


We've written a new Over 50s Life Insurance Plans guide for the website and we'd love your feedback.

How did you find the info? Was it useful? Do you have any other tips you would add?

Thanks for your help,

MSE Rebecca


  • dunstonhdunstonh
    99.8K posts
    Forumite ✭✭✭✭✭✭
    The general "adviser" view is that these plans are an option of last resort. So, the article is certainly in the right direction there.

    However, it does appear to be lacking information on normal underwritten life assurance plans such as level term assurance or whole of life assurance. These are the options people should be looking at before over 50s plan where there is a life assurance need.

    Pre-pay funerals and ISAs are other areas that can also be considered.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MSE obviously can't cover all circumstances - but - I'm nearly 68 and have recently (2 months ago) taken out one of these plans - via RIAS (AIG Life Ltd) - inflation linked although I can change this at any time if I want to - took out the plan because - I'm retired on a fixed pension income (enough to live on) - no assets or savings (live in social housing) - and wanted mainly to ensure my sons don't have to pay for a funeral in the next few years - will make other arrangements re funeral costs after this.

    Out of interest I just checked a quote from Shepherds Friendly - their policy is similar to mine (but they don't give an inflation option) - and their pay out in the event of valid claim would be 12% less on the same premium - that's a lot and certainly not a 'Best Buy' in my case - presumably all the others listed would be even worse. Or am I missing something?
  • forgotmynameforgotmyname
    30.4K posts
    25000 Posts Ninth Anniversary
    My FIL had one and he paid in approx double to what they paid out. Thats the risk. The more sensible option maybe a funeral plan.

    He paid £1800 for a funeral plan with age concern, The funeral would have cost us £3800 when he passed away. I would say thats a much better option than the over 50's plan. You can probably do better than age concern also.

    Even with the top one take it out when your 50 and live to be 90, you will have paid £4800. But you will only receive £1820 back.

    Also the earlier you take the funeral plan the better. Its unlikely to get cheaper over the years.
    Censorship Reigns Supreme...

  • We have an elderly uncle (will be 85 on 9th October). He took out a policy (without us knowing) with Phoenix (Allianz Cornhill Insurance plc) on 28th August 2002 when he was aged 72 paying £20 per month with an expected pay out of £1,854.00. To date he has paid in well over what he expects to get out. He is on pension credit and every penny counts. £20 is an enormous amount to come out of his budget. Should we cancel the policy and just suffer the loss? He doesn't want to stop paying. Carmel, Tamworth
  • we've been paying life ins for 25 years,now we're getting older the amount we pay montly goes up every 5 years . from £20.00 orig now £75.00 up to £125 per month from May.Now on pension can't afford to pay,payout is only £18,000 for joint life .Also too late now to start a new policy.Feel like insurance is one big rip off.Cashing in and get £700 after 25 years !!!
  • dunstonhdunstonh
    99.8K posts
    Forumite ✭✭✭✭✭✭
    we've been paying life ins for 25 years,now we're getting older the amount we pay montly goes up every 5 years

    If you dont go with guaranteed premiums, then that is always a possibility.
    Feel like insurance is one big rip off.Cashing in and get £700 after 25 years !!!

    Better than being dead and someone else getting the full amount.
    we've been paying life ins for 25 years

    The type of plan you have is woefully out of date. Insurance policies are a bit like many retail products in that better ones can come along and you do need to review them periodically to make sure yours is still suitable. These types of plans became niche about 20 years ago. Maybe too late for you but it may help others reading to remember to check their policies periodically.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 30 April 2015 at 1:19AM
    2 posts
    edited 30 April 2015 at 1:19AM
    I was just about to cancel my mum's policies - as she has already payed Sun Life over £3000 more than our sum assured,
    I've just noticed that if she were to end her days 'while travelling...in...a motor vehicle', or 'by rail, by road, by air...or...by sea' more money would be received...4 X the sum assured on one policy; 3 X sum assured on the other. which she's about £2000 shy of paying.

    She does need to have been travelling though; is that a reason to keep the policies going? Well, it is, but is it enough of a reason?

    Oh, but not 'if death is [as] a direct or indirect result of...war or hostilities'.

    Is this one big swizz, or not?
  • dunstonhdunstonh
    99.8K posts
    Forumite ✭✭✭✭✭✭
    Is this one big swizz, or not?

    The product is not one big swizz. It is a valid product that fills a niche need.

    The marketing of the product on the other hand leaves a lot to be desired. Advisers treat it as an option of last resort. However, the adverts promote it with limited risks disclosed. Supermarkets sell it with leaflets by their checkouts. This marketing makes it look like a normal thing to have.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • We are in the County Court with Phoenix Life Ltd tomorrow 1.5.15 after a long battle including the ombudsman. ( Ombudsman results - check out their website - last year from January to end of June only 19% of cases awarded in favour of the consumer !!!!) Which is why we are at the disgraceful place of having to drag a 91 year old to court in her wheel chair. I will come back and post the results. My mother never received full policy information ( in her stored paper work she had a policy and paid up certificate 76 years old - but they argue she is a batty old fool who has lost or mislaid their policy! She believed her payments would stop when she reached the target figure she ticked! Because she is very partially sighted the continuing payment came to light only less than 3 years ago when she moved in with my sister. What ever you do - do not stop the payments as it is clear that the policy is then void and you get NOTHING. I can tell you after over 2 years of arguing and with a recorded delivery ultimatum I did on behalf of my mother get a very small compromise - Phoenix agreed to freeze the policy and take no further payments - ( hers is £12 a month) she refused as she had in her view over paid them by over £1000, and this was the complaint and they were still not addressing it. Try this first and bombard them with letters and complaints but I can tell you will have to have tremendous perseverance as they are as slippery as a bag of snakes with continual fob off letters and I cannot say how tomorrow will go, technically we are out of time as Phoenix took the policy over in January 2007 - ( The policy was introduced by B&Q for Cornhill, then sold out first to Britannic and they sold on bulk policies in January 2007 to Phoenix Life Ltd.) but I am asking the judge to look at the matter under the Latent Damage act 1986 - where you have another 3 years to claim if there is a good reason why a mistake or fraud had not been spotted earlier - (my mother has very limited sight in her left eye only and cannot read at all - certainly not her bank statements and she lived independently until age 88) I have written and asked the Deputy District Judge If I can be my mothers McKenzie Friend and also for "power of audience" ( which means to be allowed to speak on the persons behalf - as a lay person, granted in exceptional cases only) Win or lose - you can be sure I will post the results here - I just know there are people out there affected by the same issues - (My mother was already 74 when she took the policy out a s a B&Q Senior Member - you have to be 65, so there could be many younger people out there in the same situation still paying into Phoenix's fat greedy pockets! I believe my mother was purposely targeted in a vulnerable trusting older age group, and the very sad thing is mostly this all comes to light when some one has died and then there is nothing at all you can do about it. The amount of letters is so much it will not fit in my brief case - 3 other family members will be in court as witnesses tomorrow as they also have had to help my mother store and file her paper work over the years - now it has become about the principle more than the money and bringing this whole thing into the open. My Mum is looking forward to her day in Court - it might be David and Goliath but her complaint is very well documented. Louise F
  • Quick Reply to Carmel Mason,
    Please see my longer thread discussion, but[EMAIL="DON@T"]DON'T[/EMAIL] cancel the policy with Phoenix life, you will get NOTHING back. They are Robbers morally, and they are liars literally, which I hope to prove in Court tomorrow. But my advice to you is write and tell them about the hard ship involved by continuing this £20 a month payment from a State Pension. Write in strong terms.They did, after a great deal of pressure agree this as a compromise for my mother (to freeze the policy and stop the monthly premiums) - but she refused this offer and decided to fight them the whole way in Court because they have been so deceptive and evasive and for her it became an all or nothing fight. But don't stop the payments. I find it hard to believe that a big Company like Phoenix would actually go to Court over what is to them a very small amount - against the back lash of very negative publicity that this Court Case will give, but that is where we are at! - what ever the out come I will post the results of the County Court Judgement on this thread to keep you up dated. Carmel there will be a lot of other elderly people in the same position - paying money to Phoenix they cannot afford - lets open Pandora's Box and bring it all out into the open. You must fight them, do not be a faceless victim, stand up and be counted and let other people know if you have some success. Louise F
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