Royal London comments on Which? study about Over 50s money products
21 January 2015
Commenting on the recent analysis by Which? of financial products designed for over-50s, Jerry Toher, CEO of Royal London’s Consumer Division said:
“The new analysis from Which? shines a well-deserved light on a sector that sells unfair and inflexible products: over-50s life insurance. Royal London welcomes these findings and we hope they go some way to disturb a market that we are also determined to shake up, because it is in urgent need of repair. We believe it’s time for Over 50s life insurance providers to tidy up the market, and in a bid to tackle criticisms levelled at the sector Royal London is designing products that challenge the status quo.
“As Which? highlights, gimmicks (like free pens) are used as sales incentives to sell inadequate products, which can sometimes leave people with nothing despite paying out vast sums over the years, which is appalling. Meanwhile, customers can’t easily compare life insurance products – for example, cash lump sum value. Our advertising makes comparison easier to help people shop around for the best product for them.
“Royal London is working to transform a mistrusted market with a product that is fair, flexible and good value. We are determined to improve both consumers’ and industry experts’ view of Over 50s life cover but this won’t change overnight – after years of damage, we’ve got our work cut out for us! But we believe our offering is a real game-changer. For example, customers can receive a cash sum on death even if they stop making payments. This feature, called Protected Payout, is unique among Over 50s life insurance products and the sector should see it as a gauntlet well and truly thrown.”
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Note to Editors
- There are plenty of Over 50s life cover policies to choose from and the table here www.royallondon.com/products/over50s/aboutover50s/whyus/great-value/ shows how Royal London's cash sum payable on death compares to three of the most popular Over 50s life cover providers in the market by policy sales (Source: Annual Market Analysis by Swiss Re, April 2014).
- Not all Over 50s Life Cover policies are the same. Royal London’s has ‘Protected Payout’, which means if a customer is halfway through their policy's term and they need to stop paying premiums, at least half their cash sum will still be paid out on death. No other Over 50s provider offers this. More details at: www.royallondon.com/products/over50s/aboutover50s/over-50s-benefits/protectedpayout/
About Royal London
Royal London is the largest mutual life, pensions and investment company in the UK with Group funds under management of £78.4bn. Group businesses serve around 5.3m customers and employ 2,823 people (figures quoted are as at 30 September 2014). The Group is currently moving all of its UK life, pension and investment businesses under a new version of the Royal London brand.
For further information please contact:
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