SUN LIFE OVER 50 PLAN. A WORD OF WARNING

Il_Tempo_Gigante

In November 2006 my father opened this plan with SunLife. He agreed to pay them £22 per month and was guaranteed a lump sum payment of £2,040 upon his death.

My dad continued to make these monthly payments right up to the day he died at the grand old age of 90 in January this year, in fact Sunlife took a payement out in February 2026 fully a month after he passed away. When I was going through his papers I found this policy and made a claim as instructed. I had several conversations with SunLife to discuss the details of the claim and it became swiftly apparent that although he had paid them well over £5,000 in the previous two decades he was still only elligible to receive the £2,040.as stated on the policy.

The policy also stated that if he had stopped making the monthly payments at any time the policy would be cancelled and his contributions to that date would be forfeit.

Right enough they paid his estate that exact amount with an additional £27.70 net interest, minus income tax deductions.

SunLife are still selling these policies to unsuspecting older people and although they have been challenged via the Ombudsman on a few occasions the Ombudsman found for the company, seemingly on the basis that the buyer "should have read the small print before signing up".

What SunLife are doing can't be legal, but they still continue to sell these policies. It's too late for my dad sadly, but before you sign on the dotted line have a good long look at their terms and conditions.They are about to rip you off and when you talk to them about it they have no compunction.

onomatopoeia99

They are a gamble. Die in three years and there will be £2000 back on a £800 stake. Live too long and the company wins. Considered across every customer the odds are inevitably going to be in favour of the insurance company.

Anyone thinking this is bad should instead save the £22 into a building society account (etc) so if they live a long time there's more money left behind.

Not clear what is surprising about any of this. I've seen the adverts and it's crystal clear what you get for your money.

Woodstok2000

Im sorry for your loss.

Would you feel the same if your father had passed after 6 months, and there was a £2k payout from £132 in premiums?

Albermarle

What SunLife are doing can't be legal, but they still continue to sell these policies. It's too late for my dad sadly, but before you sign on the dotted line have a good long look at their terms and conditions.

The problem is that people reading your post on a savings & investments forum are the kind of people who would never buy this sort of product anyway. Customers of Sun Life are probably more swayed by the bombardment of daytime TV adverts, and the £130 welcome gift card.

dunstonh

Over 50s plans are an option of last resort. Typically, they're purchased by people who believe they can have a short life expectancy.

They are not good value for money if the person lives longer than they expect.

The policy also stated that if he had stopped making the monthly payments at any time the policy would be cancelled and his contributions to that date would be forfeit.

That is how insurance works.

SunLife are still selling these policies to unsuspecting older people and although they have been challenged via the Ombudsman on a few occasions the Ombudsman found for the company, seemingly on the basis that the buyer "should have read the small print before signing up".

SunLife sell these policies without advice. So the onus is on the buyer to understand what they are buying. The direct offer has to make key details clear, but they are not there to provide advice. If the consumer wants the benefit of advice protection then they need to buy a policy from an adviser.

When you buy without advice, you give up some of the protections, and you are expected to have read what you have chosen to buy.

What SunLife are doing can't be legal, but they still continue to sell these policies. 

Not sure why you think a company selling products would be illegal or unlawful. They publish the terms. The person has a choice to accept them or not.

. It's too late for my dad sadly, but before you sign on the dotted line have a good long look at their terms and conditions.

It didn't really need the T&C to be looked at. They had a short document of the key features. That detailed the key risks.

I don't like these plans. I think too many people buy them where better options exist. However, if someone chooses to buy something that's unsuitable for them, then they are free to make that choice. We may be a nanny state nowadays, but we haven't totally removed freedom of choice.

otb666

Ours paid £20000 and got about £5000 back. Definitely put us off also they are not quick in paying out and as you can send funeral expenses to their banks I feel these plans are redundant now.

jimjames

What SunLife are doing can't be legal, but they still continue to sell these policies.

I paid an insurance company £500 for my car insurance last year. I didn't make any claims but they didn't give me any money back. No difference really, the company has provided a service whether or not it was the best value option. Plenty of products take advantage of inertia but doesn't mean they're a scam.

UncleK

We paid £30.25 a month for a policy on my wife's life while the children were young and at school and my wife was looking after them (my company paid for a policy on my life) such that I'd be able to pay for child care if my wife died. We stopped when they left school and my wife was still - I'm pleased to say - alive. £5445 up the chimney? No, that bought us piece of mind.
Maybe that's different to the case we have here, but it really is the nature of insurance, as others have pointed out.

leosayer

What's this got to do with T&C / small print?

The policy seems very simple to understand - pay us £22 per month and your beneficiaries will get £2,040 when you die.

MEM62

What SunLife are doing can't be legal, but they still continue to sell these policies.

Of course it is legal. Your mistake is looking at it as some kind of savings plan, it isn't. Basically, it is a form of life insurance.

masonic

I'll probably never claim on the house insurance I pay for every year. Doesn't mean it should be made illegal.