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Anyone in an over 50s plan


hssutton

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Anyone in an over 50s plan. I've never looked into this as my wife and I have put money on one side ready for the big day. I'm sure all of you have received numerous 'invites' from such as Axa Life. it seems a weekly occurance in my home.

Martin Lewis Telegraph

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Mr Mistoffelees

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Over 50 plans only make financial sense if you are going to die soon after the plan passes the qualifying date for a full payout. If you survive longer they are going to leave you very out of pocket. When I got to 50, in just over two years, I definitely will not be buying such a policy.

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Mr Mistoffelees

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Erratum

When I get to

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spuds

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Martin Lewis was discussing this very subject on the BBC Watchdog program the other week, and his advice seemed to be one of don't bother. Your monthly payments could earn higher interest over the years (Isa). It was also mentioned, that if one payment is missed (for whatever reason?), then you could find that the policy as been cancelled.

The other consideration to these plans, is how the provider offers the plan, because there are a number of variations built into some of the plans, even though the administration is from the same (Axa/Sun Life?) company, but offered by another agency elsewhere (Sainsbury/Argos/ Aged etc?).

With the free gifts offered (approx £50), and the amount that I would consider paying might be a reasonable venture. But should I die in 5 years time or longer, I doubt if the policy would bear enough fruit to cremate me, let alone a burial, unless at sea!.

But looking at the Parkinson's, Hunniford's and a few more pensioner celebrities advertising these products, then they cannot be all that bad, at least its given them some showtime and rewards. But I wonder if any of these same people have taken out one of these policies. I seem to recall one well known person who regular advertised a car insurance, yet if information was correct, the insurance company wouldn't cover them, for some reason?.

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carver

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If you have a life expectancy after taking out one of these policy's of more than 15 years then you will end up paying more than you put in.

But die any time after a couple of years after taking it out then your onto a winner, pity you aren't around to cash the check.

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Snec

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I can't see how these these things are of much use.

I paid in advance for my parents funerals and for my wife and myself too.

My parents have gone now and all that had to be done was one phone call.... it'll be the same for us when the day comes. I'm fairly certain that this is the most cost effective way and am absolutely certain that it is the least painful way for all concerned at a time of sorrow.

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morddwyd

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O Put it in an ISA.

If they'd been around when I was`50 (I'm now 74) I'd have a nice little nest egg, plus tax free interest from same.

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WhiteTruckMan

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Well my plan is simply to be an over 50 (the alternative being what it is!)

WTM

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BT

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Put it in an ISA.

The only problem with ISAs is that after the initial year with probably a bonus rate on top of the interest rate the interest can drop to a very low rate.

I have 3 ISAs running at the moment. Two are still paying reasonable rates and the third is a new one with a bonus rate. This is made up from an old one which had dropped down to under 1% which I closed and reinvested in a new one with a top up to the new annual allowance.

So the advice is to check the rates on old ISAs and if necessary transfer them to new ones. I usually do this at the start of the new financial year when the new annual allowances come in.

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morddwyd

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"the interest can drop to a very low rate."

Of course it can, but the essence here is long term. We're not looking to make a quick buck.

I was`using my own case as an example.

Had ISAa been around when I was 50, twenty four years ago, I'd have been receiving some very good interest rates for the majority of the life of the ISA.

Interest rates` won't stay low for ever.

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sunnystaines

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after being done by an endowment, I would never trust an insurance or finance company with investments or savings again.

what i do is max out isa's and do not put all savings in tied cash bonds, so you can move savings around to follow the highest rates.

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