Maz

iTrader: (34)

This was featured on Watchdog yesterday where resident terrier Martin Lewis got his teeth in to the ins and outs of various plans. There were several cases featured where subscribers to different plans were decrying the inequity of paying in more than they would be paid out. Lewis in his inimitable style waxed lyrically about figures and gave stark warnings in his usual melodramatic fashion.
This got me thinking, are these providers being unfair? Are they conning people?
Personally I thought it was a little one sided without any right to reply from the providers.
These company exist to make money whilst providing a service. There would be no outcry if everyone got back more than they paid in! Where would this money come from? Now I'm all for championing the cause of the consumer but in this case I don't think the providers are being unfair. Are they?

David Lock

Well they were in the sense that the older folk who were targeted are easy meat for the sales guys and it was pretty clear that the ones that signed up probably didn't really fully understand the downsides e.g. they would lose all benefits if they missed a payment or could be paying in when they were 100 if they didn't switch the machine off by then

There should be some protection for this group.


dl

Gear Head

iTrader: (2)

I was left thinking pretty much the same.

If everyone died having paid in less than the payout, the company would go under.
It is a calculated risk to take one of these plans out.
And when somebody takes out 10 plans without reading that are to be paid 'FOR LIFE', who's fault is that?

Some people shouldn't be let lose with money.

And that Martin Lewis cost me thousands. Just before interest rates plummeted, he was shouting, 'Fix your mortgages now, now, NOW!' He, in a round about way, called you a **** if you had not fixed already.
So we opted for a fixed 3 year deal. Within 6 months we were paying 6% when we could have been paying 3%!

Funny, how he never returns to that subject.

kingofturds

iTrader: (1)

That free parker pen works out pretty dam expensive for some folk.

David Lock

Parky has always seemed a decent bloke so I wonder if he really knew what he was promoting?

dl

EddScott

The thing is whenever its anything like Watchdog and Rip Off Britain and its related to anything financial you just know the outcome is never going to be postive.

I didn't watch the program but did they show salesmen or have tales of woe regarding salesmen? I didn't think over 50s were sold through salesmen anymore.

The thing with these over 50s is that some will pay more in than they get out, some will die early and be quids in. Its the same as some will pay for car insurance all their lives and never use it and others will pay 2 months then be in a big smash and the insurance pays out £100,000s to look after the crippled survivor. Its just how it works.

I think the issue is pointing out to someone that there is a potential to pay in more than you get out - although I believe most of the TV ads do state this???

Theres also the issue that the over 50s plans don't ask too many health questions. I work in an IFA practice and life assurance isn't something we specialise in but I do know that when older folk come to us we can usually get higher sums assured for the same premiums but theres health questions. Sometimes they'll get rated due to illnesses.

Over 50 plans are good if you need something to bury you and you are not in the best of health.

Go to an IFA, get turned over, go direct, get turned over. The media loves to stoke up fear for folk needing financial advice. You only need to look on here at some of the closed minded opinions folk have of financial advice. It is quite tedious.

David Lock

It would be a slight improvement if these plans had an upper age limit where premiums stopped but payout was still made on death or even made when upper limit is reached.

Example. Someone takes out premium at 65. Life expectancy 80. Upper limit 90. So enough extra years if person survives for companies to turn a profit.

dl

fivetide

iTrader: (1)

It does say it on the ads, you may pay in more than you get out.

TBYH the best advice from the program was buy one at 81 and hope to cash in. That said, £660? I'm sure that won't pay for someone to polish your coffin these days.

5t.