Golden Charter 50+ Standard Plan 'Pay by fixed monthly instalments'

CuddlyGorilla

Does anyone here have experience with this, please? I've recently re-married and my wife took out a Golden Charter 50+ Standard Plan in 2014 and is paying £23.83 per month until either death or age 90. The total payments being made will amount to £9,770.30,  (currently paid apx £2,600) whereas the original outright cost of the plan was £3,085.00. If any installments are missed then (after 30 days plus a further reminder), the policy gets cancelled, and no refund.
This sounds very dodgy and my partner had no idea of the sheer scale of the overall cost, should she live to be 90+
The monthly payments are "...used to purchase a life assurance policy with AXA Wealth Limited..." (now SunLife) and "We will be the sole beneficiary of that policy not you or your estate." (Referring to Golden Charter).
I'm tempted to cancel although am rather miffed at losing so much money on what might be an improperly sold policy.
Any suggestions, advice, or similar experience by others would be greatly appreciated
TIA, CuddlyG

MorningcoffeeIV

It sounds like she bought an insurance policy rather than a funeral plan.  The £3,085 you mention refers to a plan.

Not dodgy at all, but the insurances are usually terrible value, unless you're fortunate enough to die soon after taking once out. 

Whether you're better off cancelling a buying a proper plan will largely depend on age and life expectancy.

Sarahspangles

MorningcoffeeIV said:

Not dodgy at all, but the insurances are usually terrible value, unless you're fortunate enough to die soon after taking once out. 

Brilliant!

Marcon

CuddlyGorilla said:

Does anyone here have experience with this, please? I've recently re-married and my wife took out a Golden Charter 50+ Standard Plan in 2014 and is paying £23.83 per month until either death or age 90. The total payments being made will amount to £9,770.30,  (currently paid apx £2,600) whereas the original outright cost of the plan was £3,085.00. If any installments are missed then (after 30 days plus a further reminder), the policy gets cancelled, and no refund.
This sounds very dodgy and my partner had no idea of the sheer scale of the overall cost, should she live to be 90+
The monthly payments are "...used to purchase a life assurance policy with AXA Wealth Limited..." (now SunLife) and "We will be the sole beneficiary of that policy not you or your estate." (Referring to Golden Charter).
I'm tempted to cancel although am rather miffed at losing so much money on what might be an improperly sold policy.
Any suggestions, advice, or similar experience by others would be greatly appreciated
TIA, CuddlyG

What makes you think it was 'improperly sold' - and sold by whom (as opposed to 'bought' by your wife)?

CuddlyGorilla

Marcon said:
What makes you think it was 'improperly sold' - and sold by whom (as opposed to 'bought' by your wife)?

My wife has believed she had bought a funeral plan from Golden Charter. After Golden Charter became FCA accredited, they have had to send out statements, which has highlighted this issue. She hasn’t bought a plan, but scubscribed to an insurance policy instead, it would seem. I am keen to know if anyone else has experience of this, and if they’ve resolved it. I have raised a complaint, currently in progress 

CuddlyGorilla

Thanks. I had noticed the payout if death occurred within 2 years of the policy being taken out was pro-rata. 

However, the concern here is that my wife had believed this was ultimately a paid up plan, being paid in instalments for a sufficient period to pay the original cost, not a cost equivalent to 3+ times that amount, and payments would continue until she was 90 (unless death occurred beforehand). 

The whole idea of a plan is to ensure neither the estate nor family would be needing to find the costs involved in a funeral. It was not realised all payments could be at risk. A paid up plan should be exactly that. 

Thank you for your contribution, though. 

sheramber

Your wife believed she was buying a plan but in fact bought a plan.

How did she buy the plan?

Did she  buy it from a representative of the company who explained things to her ?

or

did she just read about the plan online and proceed to apply?  In this case nobody 'sold it to her, she bought it of her own accord.

CuddlyGorilla

sheramber said:

Your wife believed she was buying a plan but in fact bought a plan.

How did she buy the plan?

Did she  buy it from a representative of the company who explained things to her ?

or

did she just read about the plan online and proceed to apply?  In this case nobody 'sold it to her, she bought it of her own accord.

Just a quick clarification first, to your first para. As explained, she thought she was buying a plan, but in fact has bought what appears to be a POLICY. One which could easily be cancelled if her circumstances changed (note for example previous response). 

I had hoped for some feedback from others who may have found themselves in a similar situation with Golden Charter. I’m happy to answer further questions if necessary, but only if that is part of a constructive response, rather than just curiosity.

In this instance, without going into personal circumstances, an agent came to the residence to discuss and sell the ‘plan’. 

One further consideration for you, before you respond. 

My wife is understandably upset about this, and any non-constructive comments only serve to fuel that upset. It could just as easily be one of your relatives who was asking this. 

Thank you for your understanding.