View more on these topics

The awful truth behind criticism of 50-year loans

So, life companies have chosen to criticise the very idea of a 50-year mortgage. Well, fancy that.

“They say savings on 50-year loans would be minimal as protection policies would be very expensive if available at all for such terms,” quotes last week&#39s MM.

Isn&#39t Norwich Union the same life company which promotes an equity-release plan to those with insufficient income for their retirement? Bear with me, I will get to the point in a second. Those of us who recognise the demo-graphic timebomb as an inevitable catastrophe will know that, for as long as it takes Mr Average to save for his eventual financial independence, he will need suitable insurance to cover the wealth gap.

Now take the average amount per head saved towards retirement and tell me how long it will take Mr Average to reach the goal he so richly deserves. Surely, the term of cover will need to extend until then. Frightening when you face up to the truth, isn&#39t it?

I am quite sure other life companies have voiced similar reservations, so we need not single out NU for their apparent ignorance or is it hypocrisy, cynicism, or blatant self-interest at the expense of real consumer needs? You tell me. There is a part of me that does not blame life companies for looking after themselves.

After all, with the average amount of life cover per head of working population at ridiculous levels to go with the above pension black hole, the Government plunders the provision we are making through tax credits and insurance premium tax. Then it forces people to pay a fee if they want to get truly independent financial advice.

Then, once the fee is paid, you are best advised not to sign up for stakeholder as you will lose out on “projected” state benefits (even if it is only 50p in the £1).

Glyn Evans



Bristol & West – International 12 Month Bond Issue 27

Wednesday, 26 June 2002 Type: High interest account Minimum-maximum investment: £5,000-£1m Place of registration: Guernsey Interest rate: 4.7% gross a year, 4.6% gross a month Term: Until July 31, 2003 Offer period: Until further notice Withdrawal penalties: No withdrawals permitted during term Tel: 01481 720609

WPA gets flexible

WESTERN PROVIDENT ASSOCIATION FLEXIBLE HEALTH Type: Individual private medical insurance Minimum-maximum ages: From birth-65 Maximum benefit: No maximum Cover provided: Standard cover &#45 inpatient, daypatient and outpatient cover for cancer care. Inpatient and daypatient cover for hospital treatment, specialists fees, diagnostic scans and tests. Inpatient cover for prostheses. Outpatient cover for consultations with a consultant/specialist […]

Critical condition as Swiss Re ends cover

A move by Swiss Re to stop underwriting critical-illness policy guarantees could devastate the market for guaranteed CI products.Advisers are concerned that other reinsurers, notably GE Frankona, could follow, finishing off the CI market for products with terms of over five years without premium reviews.Swiss Re is to stop offering guarantees of more than five […]

Technical problems

I notice from the Money Marketing issue of June 6 publication that you have had a technology exhibition in Manchester, where I lived and worked for some 30 years.In 1992, MM ran a one and only award competition for the use of IT within financial services and I was lucky enough to win it.Advisers have […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm