Summary
This article looks at the over fifties life insurance policies that do not ask questions about your medical history. Can they really be financially worth it? Continue reading this article for lots more information.

The over fifties life insurance plans are selling like hot cakes. They promise acceptance without medical questions and are often sponsored by mature personalities like Cilla Black and David Frost. Consumers who take out these life insurance policies could be paying much more in than their recipients will get out.

Promising a pay out on the policyholder’s death, payments start from around £7 escalating to around sixty pounds. Being sold to clients between fifty one and seventy nine the payout depends on the premium paid, gender and age when the policy begins.

Disturbingly, no information about their health is required.  Some payment plans stop after a specified amount of time, but will still be valid until the insurance policyholder passes away. In other plans the premium is taken until the holder dies, however insurance holders can put more in than they get out depending upon when they pass away.

Referring to promotions for Axa Sun Life protection plan, Richard Green of independent financial advisers CBK Colchester says ‘I can’t comprehend Nigel Havers supporting this type of insurance product. He is first-rate act, but the same cannot be said for this policy.’

The Chairman of Legal and Generals over 50’s life Cover Plan, Steven Hedges defends Havers’s role, saying he is only making people conscious of the insurance plans existence . For this particular plan there is a substantial demand. He states, ‘The draw is their affordability because of their guaranteed acceptance process and the low premiums.’

Nevertheless, you could get a better deal elsewhere purchasing regular insurance policy on similar terms ‘consumers could get three or four times as much for their money from a regular life insurance policy, in return for responding to a few questions,’ says Greg Halliday of Clarence financial services.

Not asking any medical history imposes higher premiums as these policies tempt clients with pre-existing conditions who may die before the company has covered its cost. Insurers also freeze any payouts for the first 2 or 3 years to  guard themselves. A refund of the payments made is more often than not repaid if insurance policyholder passes away from natural causes during this time.

Director of financial services at Money Supermarket, Peter Yale, admits that the price may be less for regular life assurance but usually by the time you reach your fifties, many have undergone some sort of medical condition, as a result this is why consumers are fond of the over fifties plans. Policyholders’paying in more than they ever get back is one sphere he does not agree with. ‘We put a cap on the premiums, when we assemble our plans,’ he states. This means that once policyholders have paid the sum assured their premiums stop. So it pays to search around for the cheapest life assurance quotes.

Most over-fifties policies do eventually have cut off postions, but many policyholders have paid more than necessary before they reach this point. Premiums usually stop at ninety with the LV policy and the PO running them for a set duration.

The main reason people purchase these life assurance policies is to cover funeral costs. Yet, the ultimate settlement may perhaps not be enough money. An up-front payment insurance policy could be a better option with Old Mutual funeral care offering 4 packages costing between 2,699 pounds and 3,286 pounds. This particular type of plan can be taken out for 3 years.

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Tags: cover, funeral plans, Life Insurance, quotes

This entry was written by admin and posted on Wednesday, October 21st, 2009 at 2:36 pm and is filed under Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.