You may already have life insurance, which you took out quite some time ago. If this is the case, it’s worth thinking seriously about whether this cover is going to be enough to fit your needs in the future, since people’s circumstances can change over time.

 

Another reason for thinking about life cover is that it can help take care of some of the worries of funeral costs. With the average UK cost for a burial standing at £3,222, and cremations typically costing £2,130*, it’s an added financial burden for your family at such a stressful time. You should also consider the effect of inflation as it will reduce the buying power of any lump sum payable in the future.

 

Guaranteed acceptance without a medical

For most types of life cover you may have to undergo a lengthy medical with intrusive questions to answer. Each year, many people find obtaining life cover difficult because of pre-existing medical conditions such as asthma, angina, cancer or heart problems. With this plan, this simply isn’t an issue. As long as you are a UK resident aged between 50 and 80, you’re guaranteed to be accepted without a medical or any intrusive questions.

 

About the premiums

Premiums start at just £10 a month, but you can choose to pay up to £50 a month which, naturally, would make a big difference to the amount of life cover you receive. The level of cover depends on the premium chosen and your age, gender and whether or not you smoke. Please ask for further details. Once you have selected your premium it’s guaranteed not to rise. And as long as you pay your premiums until your 90th birthday, you’re covered for life. After 90, your premiums stop altogether, but your cover continues. Of course, if you stop paying your premiums before your 90th birthday, your life cover will cease. Please note, depending on how long premiums are paid for, the total premiums paid may be more than is paid out on death.

 

Examples for information only: -

Female – Non-Smoker – Age 50 - £30 per month – Cover of £14,836

Female – Non-Smoker – Age 55 - £30 per month – Cover of £11,539

Male – Non-Smoker – Age 50 - £30 per month – Cover of £12,057

Male – Non-Smoker – Age 55 - £30 per month – Cover of £9,052

 

How the Cover works

In the first two years of your policy, if you die from natural causes, the plan will pay back all the premiums you paid plus half again. If you die as a result of an accident in the same period, the plan will pay out either three times the life cover amount or £32,000, whichever is lower. After the initial two year period, the chosen sum assured will be paid to your estate. Please bear in mind that, as explained earlier, over time inflation will reduce the buying power of the amount payable on your death. This whole of life insurance plan pays out on death and it has no cash-in value at any time.

 

Summary

v     You are guaranteed to be accepted without a medical regardless of any pre-existing medical conditions

v     Premiums start at £10 a month and are guaranteed never to rise

v     Available to any UK resident aged 50-80

v     A tax-free cash lump sum for your family

v     Provided by a leading mutual society

v     Premiums will stop at the age of 90 but the cover continues

v     The lump sum could be used to help with funeral costs

v     Add to your existing life cover

  

*Brahm research December 2007 carried out on behalf of engage Mutual Assurance.