As the name suggests, this is a guaranteed acceptance whole of life policy aimed at older people. For the intermediary market, the plan has recently been updated following extensive feedback from intermediaries.
The main features of the plan are now:
- No underwriting or health questions and guaranteed acceptance without a medical.
- Lower rates for non-smokers.
- Guaranteed premiums throughout life.
- Premiums cease at age 90 but cover continues for whole of life.
- The full sum insured is payable on death after two years. Within the first two years, the full sum insured is paid on accidental death only.
- Available to UK residents aged 50-80 at outset.
- Up to £40,000 of cover is available. Premiums range from £10 to £75 a month.
- Premium rates are simply based on age, sex and smoking status only and there are no ratings of non-standard lives.
- A no cost funeral funding option that gives a £250 contribution from Co-operative funeral services towards funeral costs.
- Although a standard trust wording is not promoted, customers can instead nominate a beneficiary (using a Form of Nomination), ensuring that up to £5,000 can be paid out immediately on death.
- A facility to use Grace Consulting to get advice on long-term care options.
A 61 year old female non-smoker would pay £21 a month for £5,802 life cover.
What They Say
Marketing director Karl Elliott said: “Understanding the market is critical to ensuring that our products can assist advisers in solving their clients’ protection wants and needs. Working closely with intermediaries for the past three years on Guaranteed 50 Plus Life Cover, we have honed and enhanced the product to make it a more accessible and comprehensive offer for clients seeking that little bit more peace of mind from their life cover.”
What We Say
"Engage points out that in Scotland (the most expensive country in the UK) an average funeral now costs £3,918 and an average cremation £2,810. Too many people have insufficient or no life cover and are worried or embarrassed about the complex and intrusive processes life insurers adopt to seemingly try to stop them from remedying that.
"Guaranteed acceptance plans are an increasingly popular solution to that issue but they are not without their own concerns. One is the Catch 22 situation of products becoming poorer value the longer you live but having no value at all if you stop paying. Engage resolves that – to some extent – by cutting premiums at age 90 (a move we would like all insurers to follow). The plan also offers relatively high sums insured and non-smoker rates will reward those who do not smoke.
"But, the nature of such plans means that an underwritten plan will always offer better value for those accepted at ‘normal’ rates who are prepared to go through the underwriting trial of conventional life insurance cover."