Funeral insurance

lizmoz

Hi there - can anyone help with this? My friend has paid the AXA sun life company regularly for years and has cashed in her very expensive policy for a cheaper version of same. Is this something she can reclaim? This seems like another rip off by financial institutions, or is this something I'm missing seeing?

Thanks.

dunstonh

Is this something she can reclaim?

Of course it isnt.

This seems like another rip off by financial institutions, or is this something I'm missing seeing?

Why is one retail product being more expensive than another a rip off?

HD televisions cost £5000-£10,000 a few years back, now you can get them under £2000. Does that mean that everyone that bought one when they were more expensive should be refunded?

If you buy Heinz beans at 30p but then find a week later you can buy HP beans at 28p would you expect to be paid refunded the difference?

In this case, you almost certainly are not comparing like for like either. Over the years, whole of life plans have been modernised and offer different terms to those available in the past. Many of the terms are better but some are worse. Some of the current whole of life plans are absolutely dire (just look at the over 50s plans you see advertised on TV).

You may be comparing a non-investment backed plan against an investment backed plan. if investment backed you may be using different target growth rates.

One common difference that impacts on premiums is that many of them allow the premiums to cease after a certain age whilst retaining the benefits as if the premiums were still being paid. Whilst others require premiums until the day you die.

How do you know you are comparing like for like?