Everything you need to know about British Seniors Over 50 Life Insurance

British Seniors Life Insurance

British Seniors Over 50 Life Insurance is a guaranteed acceptance insurance policy for UK residents aged over 50. There are no medical questionnaires to complete or medical tests of any kind, and clients can get up to £10,000 cover.  

What is British Seniors Over 50 Life Insurance?

The over 50s life insurance is a whole life cover product, which means it lasts for the client’s lifetime. It is designed for people who want to have a lump sum of money paid out to their beneficiaries after their death. It aims to enable families or loved ones to cover funeral expenses and other costs at the time of someone’s death.

A British Seniors Over 50 Life Insurance policy offers clients the following: 

  • Affordable life cover from £4.32 a month.
  • Full cover after an initial12-month period.
  • Every policy bought includes a free will kit that is worth £100. 
  • Every new policy also comes with a £100 M&S gift card. The gift card will be sent to the client after they’ve paid their sixth successful monthly premium when the premiums paid exceed the value of the gift card.
  • A free £300 funeral benefit option in partnership with Golden Charter.

The British Seniors® Over 50s Life Insurance carries a 5-star Defaqto rating

How does British Seniors Over 50 Life Insurance cover work? 

The cover is guaranteed and affordable.  Premiums start from £4.32 per month, which applies to a 50-year-old non-smoker with a payout amount of £1,000. Premiums don’t increase during the policy unless clients select the Increasing Benefit Option. 

Policies are also flexible so clients can apply to make changes to their policies. Clients can increase or decrease their monthly premiums throughout the duration of their policy. After their 95th birthday their cover becomes free, and they pay no further premiums. The cover remains in place, though, for the rest of their lives.

Who is eligible for British Seniors Over 50 Life Insurance? 

Anybody who is a resident in the United Kingdom and who is aged between 50 – 80 is eligible. Depending on their age, clients can select a benefit amount that ranges between £1,000 and £10,000. Clients with a starting age of 50 – 69 qualify for a maximum cover amount of £10,000. Clients aged 70 – 74 can get cover for £9,000, and clients between 75 – 80 qualify for £6,000 cover.

As said already, clients don’t have to complete a health questionnaire or reveal any medical conditions to be accepted for cover. Cover can be for a single person, or it can be for joint cover with a partner. Clients are covered for accidental death immediately, and after the initial 12-month period, their policies cover death by any cause.

What is covered by British Seniors Over 50 Life Insurance? 

In the case of accidental death, twice the benefit amount will be paid out to the client’s beneficiaries in a lump sum. In the case of non-accidental death within the first 12 months from the starting date of the policy, a sum amounting to the total of all the premiums paid by the client to that date will be paid out. 

In the case of non-accidental death after the first 12 months from the policy’s inception date, the full benefit amount will be paid out to beneficiaries. The benefit amount will remain fixed throughout the life of the policy unless the client has selected the Increasing Benefit Option.

What is entailed in the Increasing Benefit Option? 

The Increasing Benefit Option entails an automatic yearly increase in the benefit amount on the anniversary date of the client’s policy. The client’s initial benefit amount will increase by a fixed amount of 3%. This will also entail an automatic 4.5% increase in the client’s premium every year on the policy’s anniversary date. 

However, clients are not locked into this. They are free to ask that the increasing benefit option not be applied, in which case the automatic increases to both benefit and premium amounts won’t apply. 

The increases will, however, come into force the next year unless the client instructs otherwise. After the automatic increase option has been voided three times in a row, the Increasing Benefit Option will be removed from the client’s policy permanently. 

What is not covered by the British Seniors Over 50 Life Insurance? 

During the first 12 months from the starting date of the client’s policy, the lump sum paid out to their beneficiaries for non-accidental death will be limited to the amount of the premiums the client has paid up to that date. However, after this initial 12-month period, (called the deferred period), clients will be covered for death from any cause. 

However, clients are covered for accidental death from the first day of their policies. If clients die through accidental death, their beneficiaries will be paid twice the benefit amount. 

What will affect the premiums for the British Seniors Over 50 Life Insurance? 

The premiums payable start from £4.32 per month, and will be stipulated in each policy. The amount of the premium will be affected by several factors:

  • The benefit amount the client has selected.
  • The client’s age.
  • Whether the client is a smoker.
  • Whether the policy is a single or a joint plan.
  • Whether the client has selected the Increasing Benefit Option.

The premium amount will remain fixed for the whole duration of the policy unless the Increasing Benefit Option is in force, in which case there will be a yearly premium increase. Should a client reach the age of 95, their cover becomes free.  They won’t pay any further premiums although their cover will remain in place for the rest of their lives.  

When will the client’s Over 50 Life Insurance cover end?

The client’s insurance will continue for their whole life until:

  • Their death.
  • They cancel the policy. 
  • Two consecutive monthly premium payments are missed, in which case the policy will lapse.
  • The insurer (AIG) cancels the policy.

What are the client’s responsibilities when they accept a British Seniors Over 50 Life Insurance policy?  

By accepting a British Seniors Over 50 Life Insurance policy, the client undertakes the following:

  • That their policy will start and end according to the terms and conditions set out in the policy.
  • To answer all questions asked by British Seniors truthfully and provide complete and accurate information to the best of their ability.
  • To accept that they have 30 days from the date of receipt of the policy documents to decide whether they want to accept the policy or not. 
  • If they don’t want the cover, they must contact British Senior within this 30-day period to get a refund of any premiums they’ve paid.
  • That if they cancel their cover after the 30-day period they won’t receive any refund of their premiums.
  • To pay regular monthly premiums for the duration of the policy after they’ve accepted the policy.
  • To inform British Seniors if any of their personal details, like name, contact number(s), address or banking details, change.
  • To check their policy on a yearly basis to ensure that it still meets their requirements.
  • To accept that the policy has no cash value.
  • To accept that the policy will lapse if they have missed two consecutive premiums.
  • To accept that their policy may not keep pace with inflation unless they have selected the Increasing Benefit Option.
  • That if they have, however, selected the Increasing Benefit Option, it may affect the affordability of their policy.
  • If this happens and they can’t pay the increased premiums, the policy may end, and they’ll receive nothing back.
  • That in the event of their death and the policy benefits being paid to their estate, there might be an inheritance tax requirement. 
  • That they may avoid inheritance tax by using an appropriate trust.
  • That the government may change the tax position through legislation.
  • That they pay in more than the benefit amount of the policy depending on how long they live. 

What are the benefits of getting British Seniors Over 50 Life Insurance?

It is a thoughtful way for people to ensure that their families have a financial cushion when they die. It can be used to pay off debts or take care of household expenses that go along with the upheaval of arranging a funeral. Or it can simply be considered a gift to loved ones after a person’s death. It is also extremely easy to arrange, and acceptance is guaranteed without the inconvenience of medical tests or questionnaires. The policy is also flexible and can be adjusted to suit the client.   

Are there potential drawbacks to getting a British Seniors Over 50 Life Insurance policy?

Unless the increasing benefit option has also been selected, the policy may not keep track with inflation, so the value of the policy may be reduced. If the client is exceptionally long-lived, they may pay in more than the final benefit that is paid out to their heirs. The policy has no cash value so if the client can’t pay the premiums anymore, the policy will lapse, and the client will lose whatever money they have paid into the policy.

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