As we grow older, planning for the future starts to move up our list of priorities. Whether you’re thinking about what to do when the kids fly the nest or you’re already enjoying the freedom that retirement brings, most people have a keen eye on the future at this stage in life. Naturally, this is the stage where many people start to think about life insurance.
Our members told us they wanted more from this type of policy than just a cash lump sum payable on death, so we’ve designed our Over 50s Life Cover Plus to be more flexible than most. That’s why, unlike some providers, we include a Serious Illness Benefit and Terminal Illness Benefit in your policy. Even better – you don’t need to pay a penny more for this. Not to mention free access to expert medical advice and emotional support via our Engage Health Support service. Just remember that this is a life insurance policy, not a savings plan, and has no cash value at any time.
It’s life cover that you can count on. Which means you can get on with the serious business of enjoying life.
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In return for a monthly premium, our Over 50s Life Cover Plus pays out a guaranteed cash lump sum when you die. This cash lump sum will count as part of your estate, so it may be subject to inheritance tax, unless it’s been written in trust. Here’s what your loved ones can expect to receive:
If you die...
After the first two years of the plan
The level of cover chosen, less any serious illness benefit already claimed.
|In the first two years of the plan ||150% of the premiums you've paid up to the date of your death |
|If solely because of an accident in the first two years ||Three times the level of cover you've chosen (subject to a maximum payout of £48,000) |
The amounts shown above don't account for any payment of serious or terminal illness benefit, which will effect the amount paid out on death as explained in the next section.
You need to be aware that depending on how long you pay your premiums for, you may pay more in premiums than any benefit paid out by the plan. Our Over 50s Life Cover Plus isn't a savings plan, and has no cash value, except where a valid claim is made.
More than just a cash lump sum on death
Wouldn’t it be better if you had the choice to claim so that you and your family can benefit from the policy, without having to wait until after you’ve passed away? Once you’ve had your policy for 2 years, if you are then diagnosed with a serious or terminal illness you could claim some or all of your life insurance. This could provide invaluable assistance when you and your family need it most.
If you’re diagnosed with a serious illness, you can claim 20% of your life cover immediately to help out during what could be a challenging time. Claiming this benefit simply reduces your life cover and the terminal illness benefit by 20%. For full details please see our policy summary.
Discovering that you are terminally ill is distressing enough without having to consider the financial impact on you and your family. That’s why our policyholders can claim 100% of the life cover amount (less any serious illness benefit paid) if they receive a terminal diagnosis. At this point the policy is closed and there is no pay-out on death. For full details please see our policy summary.
Serious illness and terminal illness are clearly huge issues for any person to deal with. But you and your family don’t have to cope alone. Provided by RedArc, Engage Health Support Services give you unlimited access to a dedicated Nurse Advisor – an invaluable source of practical advice who may be able to arrange a limited course of specialist support as well as answering many of the immediate questions that you will have.
In addition to this, Engage Health Support Services also offers impartial care advice for the elderly, provided by our partners at Grace Consulting, as well as guidance on will writing, bereavement and legal matters from The Co-operative Legal Services. All included in the cost of your monthly premium.
Most people’s first question when they consider life insurance is whether they will be subjected to a complicated vetting process. The thought of lengthy questionnaires or medicals can be daunting – so we don’t do this. If you’re a UK resident aged 50-80 then we’ll be more than happy to provide you with cover, without a medical. It really is as simple as that.
Choosing the premium or level of cover is just as easy, and our premiums range from £8 to £75 per month. Beyond the age of 90 you won’t have to pay anything and you’ll be covered for the rest of your life. Inflation will reduce the buying power of any future lump sum so it’s worth bearing this in mind when choosing your level of cover.
The average cost of a burial in the UK is now £4,690*, so many people now plan for the cost of their funeral in advance. Over 50s Life Cover Plus gives you a Funeral Funding Option at no extra cost. You just need to decide whether you want to add this to your policy. Whilst this isn’t a funeral plan and won’t necessarily meet the full cost of your funeral, it will help towards the final cost. And provided your funeral is arranged through The Co-operative Funeralcare, they’ll contribute an extra £250** towards the cost themselves.
*Engage (May, 2014), “The Engage Mutual 2014 Funeral Costs Tracker Report”
*Terms and conditions apply
Find out more about our funeral funding option.
If, for any reason, you choose to stop your payments before the age of 90 your plan and cover will end and you won’t get anything back.
You can nominate whoever you like – for example your friends and relatives – to receive up to £5,000 of the benefit payable when you die. Any money left over will go to your estate. Click here for more information on nominating beneficiaries.
If you’ve added the Funeral Funding Option to your policy, this will take precedence over any nominations, and the amount paid to your beneficiaries will be affected. You can find more information on the Funeral Funding Option here.
If you decide to take out a policy with us we’ve got a number of welcome gifts that we think you might enjoy. Choose from £30 in M&S vouchers, a DAB digital radio or our cashback scheme where we’ll give you three months’ premiums back after you’ve paid six. Click here to see the terms and conditions.