Why should I consider a Guaranteed Over 50 Plan?
Guaranteed Over 50 Plan is an easy way to leave a fixed cash sum for your family after you’ve gone, either as a gift or to help towards funeral expenses. With premiums from just £4 a month, it’s the lowest premium available on the market for life cover plans of this type.
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How does it work?
The Guaranteed Over 50 Plan is a whole of life policy - you choose a fixed monthly premium at the start and provided you keep paying them throughout your life, a fixed cash sum will be paid out when you die.
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What if I haven’t had my Plan for 2 years when I die?
If you die within the first 2 years of taking out your Plan, we’ll pay back all the premiums paid, plus half as much again.
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Do I need to have a medical?
No. There are no health questions to answer and no medical whatsoever. Provided you're aged 50 – 85 you’re guaranteed to be accepted.
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How much will it cost me?
You can choose from a range of premiums between £4 and £74 per month (subject to a maximum life cover of £25,000). As this is a whole of life plan, you need to choose a monthly premium you are confident you’ll always be able to afford because if you were to stop paying your premiums, your plan would be cancelled and you wouldn’t get anything back.
To help get your plan underway, the first premium is free.
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What is inflation?
When you choose your premium and cash sum, you need to bear in mind that inflation will reduce the buying power of the fixed cash sum over time. For example, the chart below shows the increase in the price of a pint of milk over the last 25 years.
- £1 would have bought 4 pints of milk in 1987
- £1 would only have bought 2 pints of milk in 2012
Source: National Statistics website: www.statistics.gov.uk Crown copyright material is reproduced with the permission of the Controller of HMSO
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Will my premiums and cover ever change?
No. Your premiums and level of cover are guaranteed, so will never change regardless of how long you live or your state of health. Depending on how long you live, the total premiums paid may be more than the fixed cash sum paid out.
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How are claims dealt with?
When the time comes for your loved ones to let us know that they’ll be making a claim, they can call us on 08458 35 36 37 or write to us at AXA Wealth Ltd, PO Box 446, Bristol, BS99 1DR.
To process the claim, we will need:
- The Policy Schedule and Endorsements to be returned
- The name of the person making the claim and evidence of their entitlement to the policy proceeds
- The name and date of birth of the policyholder
- The original death certificate
- A copy of the policyholder's Will if there is one
It is important that you keep the policy documents safe and let your next of kin know where to find them.
If these documents are not available, the person making the claim should contact our policy helpline on 08458 35 36 37.
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Does the Plan have a cash-in value?
No. The Plan has no cash-in value so if you cancel your Plan or stop paying your premiums, your life cover will end and you won’t get anything back. You need to be totally comfortable that you can keep up your premiums when you take out the Plan.
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When does the Plan pay out?
Once you’ve been paying into the Plan for 2 years and as long as you keep paying your premiums for life, we will pay the full fixed cash sum on your death.
If you die within the first two years, except as a result of an accident, we’ll pay out one and a half times the premiums paid in.
If you were to die in an accident during the first two years of your Plan, or within three months of an accident as a result of your injuries, we’d pay out the full cash sum. See the Terms and Conditions for full details.
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What about tax?
The amount paid out on your death will normally form part of your estate, so may be subject to inheritance tax, unless you write your Plan subject to an appropriate trust. Tax information is based on our interpretation of current law and HM Revenue & Customs practice. How taxation could affect you will depend upon your individual circumstances. Tax legislation may change in the future.
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Can I cancel the Plan?
You have 30 days from the day you receive your policy documents during which you can cancel your Plan and have any premiums paid refunded in full.
After that, you can cancel your Plan at any time by notifying us in writing. Remember, if you do cancel, your life cover will end and you wouldn’t get anything back. As long as you continue to pay your monthly premiums, your Plan cannot be cancelled by us for any reason.
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Who are Sun Life Direct?
AXA Wealth Ltd, which trades as Sun Life Direct, is one of the UK’s leading providers of life cover and the Guaranteed Over 50 Plan is the most popular Plan of its type in the UK^. Since the very first over 50s life cover plan was introduced in 1979, the team at Sun Life Direct have gained an extensive knowledge of over 50s customers and the past 34 years have seen us help thousands of people.
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Funeral Benefit Option
What is the Funeral Benefit Option?
The Funeral Benefit Option is provided in association with The Co-operative Funeralcare, which is not authorised and regulated by the Financial Services Authority but is a registered provider with the Funeral Planning Authority. Selecting Funeral Benefit Option means you give us permission to pay the cash sum from your Guaranteed Over 50 Plan directly to The Co-operative Funeralcare on your death, rather than to your estate. This means the cash sum from your chosen Guaranteed Over 50 Plan will be deducted directly from the final cost of your funeral bill, giving your loved ones less to worry about at a very difficult time.
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How does it work?
There is no additional cost to select Funeral Benefit Option with your Guaranteed Over 50 Plan;
- As long as you have had the Plan for at least two years and all due premiums have been paid, the cash sum payable on death will be paid directly to The Co-operative Funeralcare.
- The Co-operative Funeralcare will also pay a £250 Contribution towards the cost of your funeral. There is no cash alternative.
- The cash sum and the £250 Contribution will be deducted from the funeral bill.
- To receive the £250 Contribution, your representatives will need to present the Certificate of Entitlement to the Funeral Director. You’ll receive this with your Welcome Pack from The Co-operative Funeralcare.
- If you die within the first two years of the Plan, the cash sum will not be payable. Instead, all the premiums already paid plus half as much again would be returned to your estate rather than to The Co-operative Funeralcare. However, if your representatives then choose to use The Co-operative Funeralcare to provide your funeral, they will still be entitled to the £250 Contribution.
- If you die within the first two years of taking out the Plan as the result of an accident or within 90 days of the accident from injuries sustained in it, you will be entitled to Accidental Death Benefit and the full cash sum will be paid to your estate. However, if your representatives then choose to use The Co-operative Funeralcare to provide your funeral, they will still be entitled to the £250 Contribution.
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Can I choose a different funeral director?
The Funeral Benefit Option only applies to funerals provided by The Co-operative Funeralcare, a participating Co-operative Society Funeral Home or an affiliated Funeral Director.
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Can I add Funeral Benefit Option to more than one Plan?
You may have several Over 50s Life Cover Plans or similar products, from either Sun Life Direct or another insurance provider, but you can only add Funeral Benefit Option to one plan. This includes any over 50s life cover plan you may have with another provider.
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What if I change my mind?
Should you change your mind, you can remove the Funeral Benefit Option at any time with no cancellation fee by writing to us. In the same way, should your representatives choose to use another funeral provider, or have the cash sum paid to the estate, they can remove the Funeral Benefit Option when you die. They just need to be aware that the £250 Contribution would no longer apply.
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What happens if I cancel the Funeral Benefit Option?
If you decide to cancel the Funeral Benefit Option, the cash sum payable on death will be paid to your estate rather than The Co-operative Funeralcare.
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What happens if I stop paying my premiums?
It’s important that you keep paying your premiums when due each month because, if you stop paying, your Guaranteed Over 50 Plan will end and you wouldn’t get anything back. The £250 Contribution would not apply.
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What if the funeral costs more or less than the cash sum and £250 Contribution combined?
If the cost of the funeral is less than the combined cash sum and the £250 Contribution, Sun Life Direct will pay the balance to your estate. Should the total of the cash sum and £250 Contribution not cover the total cost, your representatives will need to pay the balance to The Co-operative Funeralcare at the time of making the arrangements.
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What about inflation?
Both the cash sum and the £250 Contribution are fixed amounts. This means inflation will reduce their value over time.
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What happens if Sun Life Direct stop working with The Co-operative Funeralcare or The Co-operative Funeralcare go out of business?
If the contract between The Co-operative Funeralcare and AXA Wealth Services Ltd trading as Sun Life Direct was terminated during the lifetime of your plan, The Co-operative Funeralcare would still provide the funeral where possible. However, if they were unable to do so, Sun Life Direct would seek an alternative funeral provider for your funeral arrangements. If Sun Life Direct were unable to find another appropriate funeral provider, the cash sum would be paid to your estate on death and the £250 Contribution would not apply.
In the unlikely event of The Co-operative Funeralcare going out of business, they would not conduct your funeral and the £250 Contribution would not apply. Your Guaranteed Over 50 Plan would continue as normal, and Sun Life Direct would seek an alternative funeral provider. If this was not possible, the cash sum would be paid to your estate.
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What about tax?
Where the cash sum is paid to the estate instead of to The Co-operative Funeralcare, it may be subject to Inheritance Tax. Tax information is based on our interpretation of current law and HM Revenue & Customs practice. Tax legislation may change in future.
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What if I die when I’m abroad?
The Co-operative Funeralcare has a repatriation team that can make arrangements if you die abroad. You will need to have travel insurance in place that covers repatriation – otherwise it will need to be paid for at the time.
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Do I have a say in how the funeral is carried out?
Yes, all you need to do is fill in your Personal Wishes Form to let The Co-operative Funeralcare know what you would like at your funeral. The Personal Wishes Form will be included in your Welcome Pack – which is sent to you by The Co-operative Funeralcare if you select the Funeral Benefit Option. When the time comes, The Co-operative Funeralcare Funeral Director will discuss your wishes with your loved ones.
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*Kindle, Amazon, and the Amazon Kindle logo are trademarks of Amazon.com, Inc. or its affiliates. Kindle devices are given away by Sun Life Direct. Amazon EU Sarl is not a sponsor of this offer.
^Most popular whole of life guaranteed acceptance plan bought directly. ABI statistics - 12 months up to 30 September 2012.
††This testimonial is genuine and the original may be inspected at our Bristol offices giving 24 hours’ prior notice. The photograph is posed by a model to protect the privacy of the customer involved.
£4 is the lowest monthly premium on the market for this type of product as at 28/02/13.