SAIF Golden Charter

Guaranteed over-50s value criticised

Guaranteed over-50s insurance has been singled out for criticism over its value compared to funeral plans, amid signs that it is being advertised more aggressively.

The Daily Mail has reported that advertising for these insurance plans – specifically highlighting Michael Parkinson’s AXA SunLife adverts – has increased by an extra two-thirds in the past two years. Money Mail says that these type of insurance plans offer “poor value for money”, noting that customers could pay in more than they get out, and find themselves “trapped” by the threat of losing the pay-out by missing a month’s payment.

Martin Lewis, founder of MoneySavingExpert.com, said: “These are nasty, dirty little policies. The fact that insurers are pushing them shows they have made money off them and they want to make even more.

“Many elderly people don’t want to burden their relatives after they die and they fall victim to the fear-and-guilt sales trip.”

Instead, Money Mail suggested using a funeral plan, noting the range of items they are guaranteed to cover, which includes “most aspects of a funeral”.

Malcolm Flanders, Golden Charter’s Director of Funeral Director Sales, said: “Martin Lewis clearly isn’t a fan of understatement, but a comparison with Golden Charter funeral plans indeed reveals many of the issues with these insurance plans. Our range of payment options helps ensure no one is trapped into the wrong choice for them, and funeral plans are designed to deal with funeral inflation.

“Of course, there are circumstances where an over-50s plan can offer value to a customer, such as someone who is aware that their life expectancy is less than the UK average. By legally charging the policy to Golden Charter, they can still ensure that the benefits are directed towards funeral costs.”