Did you miss the Fair Go item on Beryl's insurance? This covered the issue of a funeral plan that has been in force a very long time on the life of Beryl, who took out the cover when she was just 76 and is now in her nineties.
Like a lot of funeral plans the sum insured is low and the premiums are high. This was contrasted with the insurance for Andrew Hooker, a claims specialist lawyer, who described himself as a '52 year old overweight lawyer' and is paying just $70 a month for $300,000 cover.
The glaring fault in the interview was the failure to bring up these points: Beryl's cover would have been issued with no underwriting at all, and Andrew's would have been fully underwritten. Andrew's premiums will probably be rate-for-age (rise every year), whereas Beryl's did not.
At the same time a very good point was made about advice, by Andrew Hooker, and therefore in the segment as a whole: if you speak with a financial adviser then they might have recommended some alternative solutions:
- If Beryl could have purchased underwritten cover then she would have qualified for more insurance
- If Beryl could not get underwritten she may have been better off simply saving the money
- Alternative funeral plans are on sale where the premium ceases when the accumulated cost reaches the sum insured. Others, including one now sold by Fidelity Life, which has something similar where the premium ceases at age 85.
Advisers wishing to see a comparison of funeral plans can do so by logging in Quotemonster.co.nz and visiting the research tools are of the site.
You can view the whole segment at this link: http://tvnz.co.nz/fair-go/beryl-s-insurance-video-6330323