Insurance ads duped many elderly customers
December 14, 2007
A recent report has highlighted how many elderly consumers were duped by misleading life insurance advertisements in the 1980s and 1990s, and many are now paying the price for falling for these misleading advertisements.
In fact, the advertisements in question are still being run now, but the insurance is not as popular as it once was. However, there are still consumers that believe that the offer is too good to miss, not realising that in years to come they may have to pay a very hefty price in order to retain their insurance benefits.
The insurance ads in question offered people over the age of fifty and up to the age of eighty the chance to take out a life insurance policy without having to have a medical. The ads promised low, affordable premiums as well as a free gift for taking up the offer. The offer seemed so impressive that hundreds of thousands of consumers aged fifty and over flocked to take up the offer, as promised enjoyed low monthly repayment – at least for a period of time.
The sting in the tail of this offer is that the low premiums were only for a set period of time, and after this period premiums rocketed by an astonishing amount, leaving many consumers unable to pay and therefore benefit from their policies.
One customer explained how he had taken out a policy that cost him £28.51 per month, which was a reasonable sum for the level of cover that he enjoyed. However, after taking out the policy in the early 1990s, he recently received a letter stating that his premiums would be rising to an amazing £269.84 per month.
Last year one insurance provider was fined to failure to outline risks linked to taking out cover. Consumers are strongly advised to check the small print on any insurance policy prior to making any commitment otherwise they could find themselves stuck without any means by which to keep up with repayments once premiums shoot up.
Alan Wright
14th December 2007
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