Legal & General has launched three new guaranteed acceptance life insurance plans for the over 50s:
- Fixed Plan - fixed monthly premiums and a fixed cash sum paid out on death
- Increasing Plan - benefit increases in line with inflation
- Funeral Plan - protects against rising funeral costs
All three Over 50s plans are only available direct from Legal & General online, by post or over the phone. The plans are available to anyone aged between 50 and 80 and applicants are guaranteed to be accepted for cover. Monthly premiums stop aged 90 although cover will automatically continue until death. The benefit and premiums for the Increasing Plan and Funeral Plan are reviewable annually in line with inflation, as measured by the Retail Price Index. However, policyholders can choose to freeze their sum assured at any time and not increase it any further. The Funeral Plan covers the cost of a cremation funeral, provided through Dignity, the UK's largest funeral plan provider.
Alan Ferguson says, "People traditionally take out this type of life insurance to provide their family with funds to go towards funeral expenses or unpaid bills, or as a gift for children or grandchildren. Our three different plans give people the flexibility to choose the product which best serves their needs. If inflation is a concern, then two of our plans are index-linked and the Funeral Plan is specifically designed to help with funeral costs. Over 50s plans can provide valuable peace of mind at a difficult and emotional time."
Policyholders are guaranteed a payout after two years if they die, as long as the premiums are paid when due. If death occurs within the first two years the premiums will be refunded in full unless the death is the result of an accident in which case the full benefit amount will be paid. None of the plans have any cash-in value at any time.
Depending on how long they live, policyholders may pay in more than Legal & General will pay out in benefit. Premiums stop on the policyholder's 90th birthday but cover continues to be reviewed for their life, for the Increasing and Funeral plans.