British Seniors Insurance Agency has launched an over-50s life insurance plan with a lifetime payback guarantee.
It means no customer will get back less than they have paid in, something it claimed is a first for the industry.
The new offer pays the cover amount or the total premiums paid – whichever is more – as opposed to existing over-50s life insurance products.
Customers can get a benefit amount from £2,000 to £20,000 and premiums start from as little as £6.47 a month for a 50-year-old and £2,000 benefit amount.
Dave Sutherland, managing director at parent company Neilson Financial Services, said the focus is on customers and doing the right thing by them.
He said: “Our values are to make things simple and fair and the products we offer are guided by customer needs; we believe in providing innovative products that offer ease, convenience and simplicity.
“With the lifetime payback guarantee we believe we are on the road to making things better for our customers and ensuring that, on a claim being made, they never get back less than they have paid in, so our customers can’t lose.”
Scenario examples of policy payouts as they rise over time:
Age Policy Taken Out | Benefit Amount | Monthly Premium | Age when premiums paid match benefit | Death Age (Example) | Total Premiums Paid | Total pay-out |
55 | £10,000.00 | £36.34 | 78 | 65 | £4,360.80 | £10,000.00 |
55 | £10,000.00 | £36.34 | 78 | 75 | £8,721.60 | £10,000.00 |
55 | £10,000.00 | £36.34 | 78 | 85 | £13,082.40 | £13,082.40 |
Age Policy Taken Out | Benefit Amount | Monthly Premium | Age when premiums paid match benefit | Death Age (Example) | Total Premiums Paid | Total pay-out |
65 | £5,000.00 | £30.27 | 79 | 75 | £3,632.40 | £5,000.00 |
65 | £5,000.00 | £30.27 | 79 | 85 | £7,264.80 | £7,264.80 |
65 | £5,000.00 | £30.27 | 79 | 95 | £10,897.20 | £10,897.20 |
Age Policy Taken Out | Benefit Amount | Monthly Premium | Age when premiums paid match benefit | Death Age (Example) | Total Premiums Paid | Total pay-out |
75 | £4,000.00 | £43.94 | 83 | 80 | £2,636.40 | £4,000.00 |
75 | £4,000.00 | £43.94 | 83 | 85 | £5,272.80 | £5,272.80 |
75 | £4,000.00 | £43.94 | 83 | 95 | £10,545.60 | £10,545.60 |
British Seniors Insurance Agency January 2016
Customers who are 50 to 79-years-old and UK residents are guaranteed to be accepted with no health or blood tests.
Should a non-accidental death occur in the first two years, loved ones will receive all premiums paid in, while after two years, cover is provided for death due to any cause.
peter.walker@ft.com
