As the name suggests, premiums are payable throughout your life. This sought of life insurance pays out the benefit whenever the life assured dies. This means that as long as premiums are paid, a payout will be certain. Because of this, premiums are more expensive than for Term Assurance.
Whole of Life assurance can be used as part of your Inheritance Tax Planning, where your estate is expected to exceed £325,000. (Tax Year 2015/2016)
They are also a useful way of ensuring your dependants have enough money to pay for your funeral.
We can now offer 'Whole of Life' plans with a guaranteed sum assured, with guaranteed monthly premiums.
We can help you pre-pay for your funeral costs at todays prices. The price of funerals, like everything else, keeps going up. However, with a 50+ funeral plan, you can protect yourself against these rising costs. No matter how much the cost of your funeral director's services may have increased by the time they are required, they will be covered. You can be sure that once you have paid for your plan, there should be no more to pay for these services.*
Companies typically offer 3 levels of service when it comes to funeral cover, Simple, Standard or Superior plans which cover the cost of Funeral Directors services, and pay an allowance for 3rd party charges which usually include cremation or burial costs, Doctors and Minister fees. The main difference between the 3 funeral plans are usually to do with the quality of the coffin, and whether limousines for the family are included.
Main points are:
Pre paid funeral plans can be bought as a one off payment in advance, or the option to pay by instalments over 12 months to 120 months. If you choose to spread the cost over more than 12 months, an administration fee will apply.
*If a burial is required, because prices vary between the regions, the plan will provide a contribution toward burial costs, which rises in line with Retail Price Index (RPI) inflation. If the burial costs were more than this amount, the difference would need to be paid.
All the pre pay funeral plan providers we look at are members of the Funeral Planning Authority (FPA), it has a code of practice that all members must adhere to.
The Financial Conduct Authority (FCA) does not regulate funeral plans, but does stipulate the rules for the method of investment.
Please ask us for a no obligation quote, paying in advance for your funeral is a sensible decision that will save you money, benefiting your family or estate.
One of the main benefits of an 'Over 50s Plan' is that there is no requirement for any medical information, you are guaranteed to be accepted for life cover. This makes it an ideal plan for those aged between 50 and 75, who are finding it diffucult to find acceptance for other life insurance products.
Typically premiums are paid to your 90th birthday, although premiums stop, you remain insured for the remainder of your life. As long as premiums are maintained, a lump sum is guaranteed to be paid out on your death.
The main disadvantages to these plans are if death were to occur within the first 12/24 months (depending on provider) then you would receive a return of your premiums paid, or 150% of premiums paid, this again depending on your chosen provider. Furthermore, if you have been given the gift of long life, then at some point you may pay more into the plan in premiums than the plan is actually designed to pay out. Please call us to find the best valued Over 50s policy for your requirements.