Royal London calls for over 50s 'shake up' following Which? Report

clock

Royal London has called for a ‘shake up' in the over 50s life insurance following a Which? Report which found whole-of-life policies offered better cover.

Which? found policies with premiums of £50 per month paying between £10,185 to £13,999, compared to whole of life policies costing £27 per month and paying £14,000.

The research also found that funeral plans had clauses such as limits on cremation/burial costs and high cancellation fees which meant a savings account would be a better option for some.

One provider of funeral plans, Golden Leaves, charges a cancellation fee of 20% of the initial lump sum.

Which? Money editor Gareth Shaw, said: "Some companies are cashing in on the over-50s through poor-value products and clever marketing. Make sure you shop around and never assume that specialist products and providers are the best deal for you.

Jerry Toher, CEO of Royal London's Consumer Division said: "The new analysis from Which? shines a well-deserved light on a sector that sells unfair and inflexible products: over-50s life insurance. Royal London welcomes these findings and we hope they go some way to disturb a market that we are also determined to shake up, because it is in urgent need of repair.

"We believe it's time for Over 50s life insurance providers to tidy up the market, and in a bid to tackle criticisms levelled at the sector Royal London is designing products that challenge the status quo.

Toher added: "As Which? highlights, gimmicks (like free pens) are used as sales incentives to sell inadequate products, which can sometimes leave people with nothing despite paying out vast sums over the years, which is appalling. Meanwhile, customers can't easily compare life insurance products - for example, cash lump sum value.

He said: "We are determined to improve both consumers' and industry experts' view of Over 50s life cover but this won't change overnight - after years of damage, we've got our work cut out for us!"

More on Whole of Life

Royal London extends online trusts to WOL

Royal London extends online trusts to WOL

New discretionary trust form includes cohabitees

Cameron Roberts
clock 11 March 2024 • 1 min read
Vitality: Unemployment biggest driver for cancelled life insurance

Vitality: Unemployment biggest driver for cancelled life insurance

Financial pressures still front of mind

Laura Miller
clock 28 November 2023 • 2 min read
Timpson warns of dangers associated with joint life policies

Timpson warns of dangers associated with joint life policies

Can contribute to economic and domestic abuse

Hemma Visavadia
clock 02 December 2022 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read