Over 50s Life Insurance Plans Guide Discussion

portofino

My husband passed away a month ago in Spain. His death certificate was in Spanish but with an English translation on the back of it.
They told me on the phone becaus the death certificate was in Spanish they could not process my claim by telephone.
I sent the certificate to them along with other forms. I have waited and waited and received nothing except for the return of the death certificate. Last week on the phone I was told I didn’t sign one of the forms and that was the reason for the delay and another form had been sent to me. Nothing received so far one week later.
Now on the phone I have been told several things. First they told me they cannot accept a Spanish death certificate. They need it translated. When I pointed out the translation was on the back, they said only the headings were translated. Then I pointed out the other parts which were my husband’s name date of death etc were in fact I’m English, then they said they needed the cause of death. I then said it was not on the certificate and they said they couldn’t pay out without a cause of death. I said why ? what business is it of theirs they then said they didn’t pay out for some causes of death. I then said are you telling me that sometimes this policy doesn’t pay out after paying in for years? They then said some policies but not all have that clause.
I have no way of proving the cause of death because the doctors certificate was taken to the registrar who then issued the death certificate which is normal procedure also here in the UK.
Furthermore they refused to tell me the pay out amount even though it is a fixed sum stated when taking out the policy

I have now raised a complaint with them and await the outcome.
I do not need this stress at this time and would caution anyone against one of these policies.
If I get no joy I will have to go to the ombudsman and all the stress that will entail.

dunstonh

Sorry for your loss.

They told me on the phone becaus the death certificate was in Spanish they could not process my claim by telephone.

That isn't quite the reason. The UK births and deaths register is electronic. So, they can check these without seeing the actual certificates. The Spanish register is not available to them. So, they have to rely on the paper version. So, its not the fact it is in Spanish that is the issue. Its the fact it was issued in Spain that is.

I said why ? what business is it of theirs they then said they didn!!!8217;t pay out for some causes of death. I then said are you telling me that sometimes this policy doesn!!!8217;t pay out after paying in for years? They then said some policies but not all have that clause.

Whilst this is not an issue with normal life assurance (except suicide within 12 months), it can be an issue with over 50s life insurance plans. they are not guaranteed to pay out (one of the reasons why they are called insurance and not assurance).

Furthermore they refused to tell me the pay out amount even though it is a fixed sum stated when taking out the policy

As you know that figure already, then its not an issue. The claims handler may not know the value as some plans change on a daily basis. they handle all sorts of plans and not just one.

I have now raised a complaint with them and await the outcome.

That is all you can do.

I do not need this stress at this time and would caution anyone against one of these policies.

This is one of the reasons these are treated as an option of last resort and why conventional life assurance plans should be used whenever possible.

Hope things turn out well for you in the end.

TrapperJohn

Just investigating the best over 50+ policy and no furthest on after a few hours. I checked AIG as you mentioned and indeed seem to have significantly 'higher' payout and some flexibility.
Thanks.

Gorie

Just looking into Over 50's policies.
Long story short but with deteriorating health and intact cognitive functioning I figure I could likely live over 12 months and beat the odds of some policies out there.

My Question:

Most policies T&C quote a maximum limit of coverage (such as a limit of £100/month paying in etc...). Is this limit set per insurance group or across all policies regardless of companies? That is Could I have policies of over £100 with two separate companies?

Hope that makes sense and thanks.

Old_Lifer

Yes you can. Each Company will have it's own maximum. You can in theory go to as many insurance companies as you can find offering this type of policy, taking out a maximum level policy with each one.
You have an unlimited insurable interest in you own life so the only constraint is affordability.


However, these policies are expensive as they attract people with medical conditions some of whom believe (often wrongly) that they are otherwise uninsurable. This is reflected in the price.


The policies are offered with a free gift and are often bought on a whim. I would expect the early cancellation levels to be higher than with a normal life policy. This too is reflected in the price.


As is often said on these Forums, these policies are expensive and a normal life policy with medical questions asked is usually far cheaper.

rozithepirate

I am helping am elderly friend and her husband who has dementia with their finances. I looked at their bank statement for Jan/Feb 2019 and found they were paying out for 5 Sunlife and 2 British Seniors over 50s end of life policies. They are of limited income and as the husband accrues the most of that. Should he go into a nursing home she will be left on an income of around £150 pw out of which she will have to run the family home and pay these policies which add up to £103 pm. I always think of insurance as a gamble. It can be a good gamble if you get it right.


We are going to have to cancel 5 of these policies which will mean a considerable loss of money but we can't carry on throwing good money at it when the likelihood is that they will both at some point end up in a care home. I wish they had asked me earlier to help them.


On a money saving note I have saved them up to now £128 per month by cancelling Dom and Gen for a TV from 2008, Currys product insurance (don't know what for), explained to them about 118 charges and showed them how to google on smartphone and would you believe they were paying two companies for broadband on the telephone same line. I think it is a sad world where companies go all out to part our elderly population from their money. So when we cancel the over 50's it will be a £200 a month saving.


Come you guys give your parents a money health check!

rozithepirate

Regarding over 50's I personally took out an Aviva policy in 2011 when I was 55 for £10 per month.


I have to keep checking it because it amazes me. I will pay £10 per month for 20 years I will be covered for life my family will receive £5186 if I die in an accident and £2593 for other causes. If my maths are right 20 x 12 x £10 = £2400 so I am in a win win situation.

Gorie

Rozi - your first post sounds shocking!

I would complain about the two separate broadband and phone charges - surely it should not be possible to pay for two services on the same line. I would complain to the providers first asking each for 50% back and if they don't agree I would contact the regulator Ofcom - you should be able to get that money back. Wonder if any one else on the forum has more experience than this? Would 50% back from each be the way to go? Either way for now keep bills and bank statements as proof of payment.

Regarding the life insurance policies - if your playing Mathematical models (as the companies do) then you can win. If not then its a great loss.

Another thing to try is SunLife will only allow a total of £10000 in cover. If the seperate policies in total insured value exceeded this amount you may be able to claim some premiums back. I have recently read, in their T&C, that if you do have excessive insurance (over £10'000) then they pay out the maximum (i.e. the £10'000) and refund the premiums for the rest. Again someone else with experience may be able to feed in.

Good luck!

Gorie

Who Can Win with these policies:

Would all agree that these policies seem ideal for someone with a terminal prognosis (cancer, heart failure etc...) who is likely to live a year (but less than 13, or 10 years if you worry about missing interest on savings)

No medical - so they'll be accepted
If they die within the first year - all premiums are refunded.
If they die after a year - they receive policy amount.

Which One to Get?

A good way to compare these policies is to divide the total paid out in the event of death by the monthly payment. This will give the number of months required pay in to equal the amount payed out. Comparing the major providers this ranges from 153 months (SunLife) to 160 months (Aviva). All the major providers I have compared are fairly similar.

I have basically found that, on average across the main players, if you pay in for 13 years plus you loose money. This does not consider interest you would have received if you paid this money into a savings account - so maybe 10 years later you start loosing money.

This method is purely mathematical - what other things should be considered?

rubicon15

I find the over 50s article a bit out of date, and doesn't mention some important conditions. I've been looking into this for myself the last few days. I'm not a good saver, and getting on a bit now, and as a smoker, don't necessarily think I'll end up paying way over the odds. Anyway, Sun Life is now only 12 months before it pays out, at least that's what I see when I check their site. Also the figures are totally misleading. I get the over 5k on Sun Life even as a smoker, as they don't ask, tried the Sainsburys listed as better, but it goes down to 3.6k as a smoker. And no, I'm not involved with Sun Life, just trying to make a decision to actually not leave my wife any debt, or if paid off, have at least some funeral funds.