ASDA Financial Services asks if it is fair that thousands of people with over 50s life policies could have to pay in far more than their cover will pay out?
ASDA pledges to put that right with its new Over 50s Life Cover and the promise that customers will never have to pay in more than they get out.
ASDA's new Over 50s Life Cover policy ensures customers will only pay premiums until their chosen sum assured is reached. After this point their premiums stop but their cover continues for the rest of their lives.
ASDA's Head of Insurance, Gideon Ingham comments: “For too long, thousands of Over 50s Life Cover policy holders have been penalised for living longer by having to pay much more in premiums than is paid out. ASDA has a long-standing reputation as a consumer champion and will go that extra mile to identify policies that do not unfairly penalise customers. Our new cover is going to ruffle a few feathers, but it's high time that this customer group was treated fairly - so we think that all over 50s life policies should put a cap on premium payments.
If customers are a UK resident and aged between 50 and 75 there are no medical questionnaires or long forms to fill in when applying. To sign up for cover, just four simple questions are asked: date of birth, gender, whether you smoke and how much you would like to pay.
Premiums have been designed to fit every pocket with cover starting at £6.95 a month.
There are a number of other added incentives for taking out Over 50s Life Cover policy with ASDA. The first month's cover is free, monthly payments are guaranteed never to increase and policy holders will benefit from the added bonus of a £30 ASDA gift card when they take out their policy.
This new policy is provided by AIG Life and is available exclusively through ASDA.
Life insurance: News update: May 2008