Watchdog finds over-50s misled by funeral cover claims

Just a point to note from last weekend’s Telegraph.

People aged over 50 are being misled by life insurers that imply their policies will cover funeral costs in full but instead leave families with bills to pay, according to an Article in the said newspaper.

As a result, the Financial Conduct Authority has issued a warning to firms that offer life cover for the over-50s but do not meet fair promotion rules. Adverts often refer to providing “peace of mind” to those left behind by ensuring they do not have to pay for “funeral and associated costs” but actually may not cover the costs of funerals in full.

The regulator said: “The financial promotions team has seen promotions for life policies for the over-50s where we believe consumers could be misled into thinking they are buying a policy that will cover their funeral costs. If a firm’s promotion includes product features or benefits, these must be presented in a fair, clear and non-misleading way taking into account the target audience.”

I’ve seen adverts on TV which state that no underwriting is necessary and the client will get a Guaranteed Sum on death.  Just remember, you get nothing for nothing and the pay out from these type of plans are small by comparison with a properly underwritten Plan.  Sometimes even there is no pay out in the first two years.  Beware.

Please, take advice from a Financial Adviser who is  regulated by the Financial Conduct Authority and who authenticity can be verified.