WARNING Life Insurance is a waste of money

ladyp62

My Mother has recently passed away bless her heart since 1993 she paid in to a Insurance just to cover her Funeral costs she always said she did not want any of us (her children ) struggling to pay for her funeral costs.
So she paid £41.63 every month since 1993 to Aviva never missed it was direct debit and got a certificate saying it would cover her for £20,000 I got in touch with Aviva who has just sent in the post the forecast of the total of my dear moms insurance a grand total of £1,446 it makes me mad that a pensioner struggled to pay that amount of £41.63 for over 20 years which was a lot for her just to get that amount back it is a insult a insult to her. can not tell you how upset i am not for the money but for my mom.

dunstonh

Sorry for your loss

WARNING Life Insurance is a waste of money

Life assurance can be highly valuable and important to the majority of the public. There are about 13 different types of life assurance retailed in the UK. Although many are niche nowadays with just a couple left in the mainstream.

So she paid £41.63 every month since 1993 to Aviva never missed it was direct debit and got a certificate saying it would cover her for £20,000 I got in touch with Aviva who has just sent in the post the forecast of the total of my dear moms insurance a grand total of £1,446 it makes me mad that a pensioner struggled to pay that amount of £41.63 for over 20 years which was a lot for her just to get that amount back it is a insult a insult to her. can not tell you how upset i am not for the money but for my mom.

Either your mum had an over 50s plan which is an option of last resort and not very good or she had an investment backed whole of life assurance plan (perhaps on maximum cover) where the sum assured and premium was not guaranteed and the figures get adjusted every 5 years after the qualifying period (which is usually 10-15 years).

Life assurance is not a waste of money at all. However, you have to buy the right product to fit the need. Buy the wrong one and live longer than expected and it can seem a waste of money. However, be thankful that you got all those extra years with her.

HappyHarry

Life assurance is usually very straightforward. You insure yourself for a sum, you pay the premiums, and in the event of death, the insurer pays out the agreed sum.

Have you asked Aviva why they are not paying out the £20,000 that it says on the certificate?

EdGasket

£41.63 per month for 22 years since 1993 equates to about £11,000 and therefore a policy offering to pay £20,000 seems too generous unless your mum was expected to live much longer. Are you sure you have the terms right? Why would a funeral cost anything like £20,000? Isn't £4,000 about normal for a good send off?

I and my wife had life cover for some years when we needed that insurance. Fortunately we didn't die but neither of course did we get anything at all back for all those monthly premiums.