Protect up to twelve family members for £2 per person per month on one unique policy
We saw FamilyLife+ mentioned in the Guardian newspaper on 29 May 2010 and were interested in the product. Described as a funeral and bereavement insurance policy costing from £2 a month.
It is interesting as it is pitched at the family, and is aimed at the fear of paying funeral costs.
So let’s look a little deeper at what is on offer. It is actually a life assurance policy which pays when one of the people insured dies within the term of the policy. The amount you receive is fixed, so the premium is fixed. That is usual, and the premium looks affordable, but of course it is a small amount as you are only insuring for a small amount, in this example for £2,000. In ten years what will £2,000 buy?
No comment or criticism is made of this policy, and all we say is look hard at what you are actually buying. You are not being asked to pay much, and not surprisingly you are not going to receive much.
If you need life assurance, because your family depends on someone as a wage earner or child carer, you need to seek proper advice about the sum you need to insure. It will be more than £2,000. Nothing wrong with a small sum insured, but are you being sold a little to open the way to further sales, or is it a clever sales technique? Take a few quotes yourself on a realistic sum which will make life easier if the worst happens, and take financial advice you trust.
Let us know your experience.