Do over 50s car insurance charge too much?
Whenever you hear negative press stories about the Over 50s car insurance Plan type of policies, it’s usually concerned about the fact that you pay more in premiums than you get back in life cover should you be lucky enough to live so long! Well call me stupid, but if I end up living that long, then having paid a few more quid into the plan than my family will get back will be the least of my worries!
We should remind ourselves what insurance is all about and that is to protect ourselves and our families against an event happening, in this case, our death, giving us peace of mind that if the unthinkable happens then we are leaving our loved ones behind with a nice little sum of money, either to be used for funeral expenses or a legacy to our children and grand children.
We don’t think twice about paying hundreds of pounds for our home and car insurance over the years never to make a claim and yet you never hear horror stories about these facts, so why are the Over 50 Life Insurance Plans so emotive?
It’s an emotional time for families having just lost their mum, their dad or their grand parents and the realisation that they have been paying the insurance premiums for many years only to receive a relatively small sum back, which sometimes isn’t enough to pay for the funeral arrangements, is hard to bear.
How could these great big insurance companies rip my mum off?”, is an emotional, but understandable response. Had their mum died within the first few years of taking the plan out, they would of course been delighted that they had taken out the policy!
The rising cost of funerals means that we should all be looking at the best way to spend our money! And with saving interest rates so low you could be tempted into considering whether a prepaid funeral option is in fact a good investment when compared to the alternatives. One thing is for sure It’s going to happen to all of us.
There are about 6 to 8 car insurance Plans on the market from the likes of Sun Life Direct, Legal & General, Engage Mutual and more recently the AA have introduced a new plan with premiums starting at £4.99 per month.
Depending on your age and the amount of life cover you wish to have will determine the monthly costs, but with the average funeral costing just under £3000 you bear this in mind.
Like all insurance plans, you are insuring against something ever happening, but if it does then you or your family are protected. So whilst you may end up paying in more than you will get out of the plan this is no different to any other form of insurance.
I would rather my parents have an Over 50s Life Insurance Plan in place, as for a relatively small monthly premium they have the satisfaction of knowing that they are not leaving the burden of paying for their funeral to me and the rest of the family.
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