How does Over 50s Life Insurance work?

Over 50s Life Insurance FAQ

You may be wondering how an Over 50s life insurance plan may apply to you, how it works, and what would happen to the money once a claim has been made. To make everything a bit clearer for you, we have put together some frequently asked questions.

What is an Over 50s life plan?

An Over 50s life plan is a simple life cover plan especially suited to people aged over 50, that pays out a guaranteed lump sum when the plan holder dies.

Who can get one?

With a Shepherds Friendly Over 50s life plan, you are guaranteed to be accepted for a plan if you are aged between 50 and 80 years old, but this varies from provider to provider.

Do I have to provide medical evidence to get a plan?

You do not have to provide any medical evidence with a Shepherds Friendly Over 50s plan. Under the plan we guarantee to accept your application without any medical underwriting, so no medical evidence is required.

Why would a person choose to purchase an Over 50s life plan?

As Shepherds Friendly Over 50s plan pays out a lump sum payment after you have passed away, it can work as a helping hand to your family during such a hard time. The lump sum can be used to help with funeral costs, bills that need to be paid, or allow you to leave some money to your children or grand children when you pass away.

How much can I pay?

The Shepherds Friendly Over 50s plans starts from as little as £10 per month, and you can choose to pay up to £50 on any one plan. Your premiums are guaranteed never to rise and your cover will never be reduced, regardless of your future health.

If you want to increase the amount payable on your death or you wish to pay more, you can always take out another plan as long as you are between 50 and 80 and the total premium under all your policies does not exceed the maximum of £50 a month.

How long do I have to pay my premiums for?

Premiums are paid until you pass away then your estate will receive the lump sum agreed; or premiums are paid until you reach 90 years old, and then you will no longer have to pay your premiums, but your estate will still receive the agreed lump sum when you die.

What are the main features?

Our Shepherds Friendly Over 50s plan offers:

  • Cover that provides a guaranteed fixed cash sum – you can decide how much you want your family to receive.
  • Premiums that are guaranteed never to rise; Once you have decided on how much to pay into your new plan each month, we promise that these premiums will never increase.
  • Option to receive an extra £250 of funeral benefits. You can choose to nominate your final payout to Golden Charter, the UK’s leading independent funeral plan provider. They will not only take care of all funeral arrangements but will also contribute an extra £250 towards the cost.
  • Quick and easy application process: Our online application process is easy to use and can be completed in minutes.

When will I be covered from?

With the Shepherds Friendly Over 50s life plan, once you have been paying your premium for two years the full amount of life cover will be paid out if you pass away.

If the plan has been in force for less than 2 years and you die of natural causes, we will pay out one and a half times the total premiums paid to date.

However, if the plan has been in force for less than 2 years and your death is caused by an accident then we will pay the full amount of life cover that is stated in your plan.

If you have chosen the funeral option within the Over 50’s plan and you die within the first two years, the full cash sum will not be payable. Instead we would pay Golden Charter one and a half times the premiums paid – the cash sum would be used towards your funeral and you would still be entitled to the £250 contribution.

How much money will my plan pay out?

The amount of benefit paid out, providing you have paid two years full premiums as agreed, will be the lump sum you chose at the beginning of your plan.

What about inflation?

The amount of benefit you pick is fixed when your plan starts and doesn’t change. You will need to keep in mind that inflation in the future is likely to reduce the value of the sum assured you select at the beginning of your plan.

Can I increase or decrease payments?

With the Shepherds Friendly Over 50s plan you can not increase or decrease your payments, but if you want more cover you can always take out an additional plan. If you are interested in taking out more than one plan please speak to our customer service team or your financial adviser about the terms and conditions.

So what happens next?

Would you like to apply for a Shepherds Friendly Over 50s insurance plan? You can fill out an application form here. If you would like any further information , please call our Shepherds Friendly customer service team on 0161 428 1212.

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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