Property News · May 28, 2016

Expensive and worthless: the whole of life insurance plans sold to millions


Many people are facing huge hikes in premiums, and discovering that the controversial policies sold as investments are anything butSince the late 1980s Kusumben Amin, now 82, has scrimped and saved to build a nest egg for her two daughters. But after handing over £35,000 to a reputable insurance firm over a period of 29 years, she has now discovered it is worth a paltry £1,227.Although Amin, who speaks little English and reads none, thought she had taken out a savings policy, what she had been sold was a complex life insurance policy only of use to the very rich. But Amin is far from rich. Her total income is the state pension plus another £191 from her deceased husband’s pension. The insurance firm Phoenix Life has been taking £247.83 a month for the policy, leaving Amin almost on the breadline. In March she showed her daughters a letter from Phoenix. They were horrified. It asked Amin to pay even more – up to £458.85 a month, equal to more than half her total income. Continue reading…

Source : theguardian.com
Read more…Expensive and worthless: the whole of life insurance plans sold to millions

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