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The funeral plans that pay out less than you've saved when you die
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5corpio started a blog post The funeral plans that pay out less than you've saved when you dieThe funeral plans that pay out less than you've saved when you die
Thousands of older people are losing as much as £3,000 each from savings plans designed to cover the cost of their funeral. These policies are heavily advertised on daytime TV, with one featuring Sir Michael Parkinson and the promise of a free Parker pen. The plans pay a guaranteed lump sum of about £1,500 to your family if you save £10 a month until you die or turn 90. But experts say that unless you die within a few years, your family could end up receiving less than you paid into the policy. And big names such as Asda, Tesco and Parky’s provider Axa Sun Life are some of the worst culprits. Peter Vicary-Smith, chief executive at consumer champion Which?, says: ‘For most people, over-50s plans are incredibly bad value. ‘They’re inflexible and, for the majority of customers, they will pay out far less than you have paid in.’ Funeral plans, also known as guaranteed over-50s plans or whole of life policies, are big business for insurance companies. Last year, 474,000 people took out a guaranteed whole of life contract, a 10 per cent increase on the year before, according to trade body the Association of British Insurers. The average cost of a funeral is £2,000 — and this does not include flowers, catering or buying a plot of land — and costs rise all the time with inflation....Read more hereTags: None
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