British Seniors Insurance Agency has launched an over-50s life insurance plan with a lifetime payback guarantee.
The plan means that 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 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 per month for a 50-year-old and £2,000 benefit amount.
Customers who are aged 50 to 79 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.
Mark Dennison, principal at Essex-based LightBlueUK, called it a welcome addition to an area where there is a lack of competitive products for an ever increasing market.
Mr Dennison said: “Although for healthy clients, whole-of-life cover would probably remain more price competitive, this is a good option for clients with complex medical histories.”
Scenario examples of policy payouts as they rise over time:
Age policy is 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 is taken out | Benefit amount | Monthly premium | Age when premiums paid match benefit | Death age (Example) | Total premiums paid | Total payout |
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 is taken out | Benefit Amount | Age policy is taken out | Age when premiums paid match benefit | Death age (Example) | Total premiums paid | Total payout |
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
peter.walker@ft.com
