Some plans do take inflation into account and it's important to understand that once you have paid the money in, like an insurance policy, you can't get it back. James Daley, Money Editor of Which?, explains that people are living longer but unfortunately if you do end up living into your nineties and you have got one of these plans 'they are going to turn out to be incredibly bad value'. That's because with Over 50's plans, the amount it pays out is fixed, so the longer you live, the more you pay in. If you sign up for these type of policies, you may end up paying more in than it ever pays out.
Policies like these may sound good - no medical checks before you sign up, and a guaranteed pay out even if you die just a year or two later, but you really have to examine the small print as you could pay more than paid out on death.
