Promis Life - Life Assurance

Mumum

Does anyone have any experience or comments on Promis Life’s Life Assurance? I am coming up to 4 yrs remission from stage 3 breast cancer and considering a £5000 policy to cover funeral costs, hopefully further down the line. My chances of survival are fairly good but I wouldn’t want the cost of a funeral to come out of the money I would leave my son, it seems such a waste (wish I could just be thrown in the sea!). The premiums are £9.23 monthly, increasing 3% yearly or £15.73 fixed. It seems too good to be true that they would offer a no-medical relatively low premium like this which would be sure to attract people in my situation and when I would have to live a near further 20 years for them to make any money out of me. Where is the catch? What am I missing? Thank you!!

p00hsticks

How old are you ?
And wehat is your realistic life expectancy ?

I find the issue with these life insurance schemes is that, as with all insurance, if at a later date you find you can't afford to continue with the premiums the cover stops and you get nothing back.

The £15.73 fix presumably means that the £5000 sum insured doesn't incease with inflation , so may not cover the price of a basic funeral in a few years time - you'd need to go with the increasing premium to get an increasing amount.

Have you considered 'self insuring' by simply putting £10 a month in a savings account specifically to cover your funeral costs ?

I suggest you talk it over with your son to see how he feels about it - personally I'd hate to see my parents spending their money on this just to ensure that I get a little bit more when they're gone.

p00hsticks

I forget to say

Mumum wrote: »

I wouldn’t want the cost of a funeral to come out of the money I would leave my son, it seems such a waste (wish I could just be thrown in the sea!).

I understand that burials at sea are actually among the most expensive!
But a simple direct cremation should be considerably cheaper that the sum you're thinking of insuring.

If you only want a simple service (no flowers, notice in paper, mourners cars etc) or none at all then let your loved ones know .

Mumum

Thank you P00hsticks, I’m 48 and my life expectancy up to 10 years is 85%. I have the money already so don’t need to put £10 aside, the only benefit to having the policy is if I die within the next 17 years. After that, I believe, I would end up paying in more than I would get back. Accidental death pays out double. Good point about inflation though I don’t mind a little coming out of my son’s money to cover for that. He is only 12, I’m not sure I have the heart to talk to him about this after everything he has been through. Thank you for your thoughts and comments though P00h. In an ideal world I would buy a cheap funeral now but I’m not sure how that would work if I lived a further 20 years or more.

Mumum

Yes, I only want a simple service, I think all the fanfare is pointless and a waste of money. I will let people know as I haven’t yet, thank you.

Owain_Moneysaver

Mumum wrote: »

In an ideal world I would buy a cheap funeral now but I’m not sure how that would work if I lived a further 20 years or more.

That's what prepaid funeral plans are for - they guarantee to cover the cost of the agreed type of funeral (although they usually exclude cost of purchasing a grave/headstone). Once you've paid the cost of the plan there is no extra cost for you to pay. They are not the same as the life assurance plans sold on telly, which keep you paying in for life (so what you pay in can be more than what the plan will ever pay out) and do not guarantee to cover a funeral cost.

Mumum

Thank you Owain, although I can’t see the benefit of a prepaid plan when I have the funds to buy one already. The life assurance seems attractive because I could save a lot of money but if it takes 17 years before you start paying back more than the policy’s worth, then it may be worth just putting the £15 aside in your own savings. I guess the gamble is whether I will live beyond the 17 years. Very hard to know what to do.

Owain_Moneysaver

Mumum wrote: »

Thank you Owain, although I can’t see the benefit of a prepaid plan when I have the funds to buy one already.

You have funds now, but you might not have when the time comes.

And the life assurance plans only pay out a fixed amount - the cost of funerals is rising. That's why the adverts are careful to say "could help with a contribution towards the cost of a funeral"

Of course, if there aren't funds available the council will provide a public health funeral with a simple service - which is more than is provided with the cheapest direct cremation plans, which have no service or ceremony and mourners cannot attend the cremation.

antrobus

Mumum wrote: »

Does anyone have any experience or comments on Promis Life’s Life Assurance? ...

There are alternatives.

Over-50s' plans: The best buys
https://www.moneysavingexpert.com/insurance/over-50s-life-insurance/

p00hsticks

Mumum wrote: »

He is only 12, I’m not sure I have the heart to talk to him about this after everything he has been through.

Apologies, for some reason I had assumed he was an adult - I agree it wouldn't be an appropriate topic to discuss with a child.

Weighty1

Mumum wrote: »

Thank you Owain, although I can’t see the benefit of a prepaid plan when I have the funds to buy one already. The life assurance seems attractive because I could save a lot of money but if it takes 17 years before you start paying back more than the policy’s worth, then it may be worth just putting the £15 aside in your own savings. I guess the gamble is whether I will live beyond the 17 years. Very hard to know what to do.

The cost of a funeral is rising way about general inflation. From recollection, last time I checked it was about 7% per annum. Unless your funds are growing at that rate then the money you hold will not keep track of the rising costs of inflations over time. THAT is why buying a prepaid funeral expense plan is generally seen as pretty good value for money.