Are Over 50 Insurance Plans A Rip Off?

[barney15c]

There are lots of these over 50 plan products, that leave a sum to your children / or other relative when you die, either as a way of covering funeral expenses or a sum of money to leave.
Aren't these schemes a bit of a rip off?
Some don't even pay out the money you put in (i am assuming the companies take their admin costs out of them), some pay out a set amount and skim off the extra regardless of the fact you paid in more money.
Wouldn't it be better just to put the money (the equivalent monthly payment) away in a building society account and hope the interest rates will improve. As it seems you aren't making any interest on your money as such although i bet the insurance companies are if they have enough people paying into a big pot.
Has anyone actually got one of these plans, are they actually a useful thing? Or is it just another way for insurance companies to get money out of people?

[dannyk13]

It depends how long you live. I took one out but after a few years I saw that I would pay four times as much as I would be paid out.

[dannyk13]

^for would read had^

[ToraToraTora]

yes

[barney15c]

Its like giving them a long term interest free loan in my book.

[dannyk13]

///Its like giving them a long term interest free loan in my book///
Hardly, with a loan you expect to get what you loaned back.

[barney15c]

Touche Darren , they are bloody chancers

[barney15c]

oops sorry Darren!

[barney15c]

Danny!

[dannyk13]

lol no probs

[barney15c]

I thought Michael Parkinson was trustworthy, hes nothing but a *** scheister snake oil salesman now.

[EDDIE51]

People think you can make one payment and a week later pop your clogs and get thousands of £s to your estate. But of course it is not like that.

[mikey4444]

Some of the comments on here show that people don't understand how funeral plans work.

These type of funeral plans suit some people very well.

There is no medical required, and as long as you survive for at least 2 years, they will always pay out. They are ideal for anyone who would not pass an medical, and havn't a lump sum to pay save for their own demise.

[modeller]

One fact that is never mentioned ,unless I'm mistaken ? And that is Inheritance Tax ( IT ) . What ever the pay out at time of death it forms a part of your estate and is liable for IT. Therefore whatever the presumed advantages of a funeral plan 40% of the payout will be taken by the tax man.