Over 50’s plan

Will she get anything if the policy is cancelled?

Janburry my MIL had two of these, she must have paid in well over £1,000 on each and the payout was £400 on each after she died.

They really are a scam.

The whole scheme is based on a gamble and your mum hasn't won.
This may help
www.moneysavingexpert.com/insurance/over-50s-life-insurance/#:~:text=You%20could%20pay%20in%20more,sum%20paid%20out%20is%20fixed.

This is general information about these kinds of policies from the SunLife website. This is the company that seems to do most advertising on daytime TV.

Cons

You'll need to pay every month for a set amount of time – you usually pay each month up to a predetermined date, after which the premiums stop, but the cover continues. With some over 50s insurance providers, you pay each month until you die. Some providers offer options to stop paying earlier but may reduce your payout as a result. Be sure to check the details of your plan before you commit.

Waiting period – because insurers don’t ask you any medical questions, they make you wait a period of time before they will payout in full. This waiting period is typically 12 months but can be much longer with some insurers.

You can't miss payments – if you stop paying in the early years of your plan then typically your cover will end, and you won’t get back the money you’ve paid in. Some insurers will allow you to stop paying after a set period, others will allow you to reduce payments or even take a payment holiday.

You could pay in more than the payout – depending on how long you live, you could pay more in premiums than the cash payout. For example, if you took out an over-50s life insurance policy at age 50 and paid £20 a month for £6,000 of cover, you’d have paid more than the cash payout if you live more than 25 years.

You need to check with the provider what they will allow and what the penalties might be.

I had the same dilemma, Carol Voorderman was advertising this policy, it’s a scam!
I continued as otherwise my mother would have lost out.
She was £500 down when she died.

Thank you all for your input it has given me food for thought, l will have a chat with my sister once I’ve checked out some of the websites suggested

A life assurance plan is a gamble really. You are placing a bet each month when you pay the premium that you will die and the company accepts your bet. They too may lose if you die in the early years but you must remember this is not a savings plan!

I'd cancel without a second thought.

It's not worth what she is paying: she may as well have the money now, while she can use it for things she fancies.

And the cash payout is worth less in real terms because of inflation!

MissAdventure

I'd cancel without a second thought.

It's not worth what she is paying: she may as well have the money now, while she can use it for things she fancies.

If the plan is cancelled there is no pay out.

If the plan is cancelled there is no pay out.
No, but she’ll have the repayments. If they come close to adding up to £5k over the next six years she might be better off cancelling and spending the money on treats. If, on the other hand there is a need for funeral expenses before the policy matures she (or her descendants) would be better off keeping it going.

A tricky one, OP. Personally I would continue to pay in, as death is a certainty and at least there will be some money back when the inevitable happens.