OneFamily has introduced a number of changes to its Over 50s plan, which now offers:
• A whole of life plan with guaranteed acceptance.
• Guaranteed premiums that cease at age 90.
• Funeral funding is built-in, with an opt-out option. On death the benefit is paid direct to Golden Charter, which adds a £300 contribution to the policy if one of its chosen providers is used. Any balance above the actual funeral cost is returned to the customer’s estate.
• Serious illness cover pays 20% of the sum insured in the event of a serious illness diagnosis, provided the policy has been in place for over two years. The serious illnesses covered are malignant cancer; heart attack; stroke; Alzheimer’s disease and other dementia; aorta graft surgery; benign brain tumour; blindness; breastbone surgery to treat heart disease; coma; deafness; kidney failure; loss of speech; loss of hand or foot; major organ transplant; motor neurone disease; multiple sclerosis; paralysis; Parkinson’s; third degree burns, and traumatic head injury.
• Terminal illness benefit - 100% of life cover, less any serious illness benefit already paid, provided the policy has been in place for over two years.
• Maximum sum insured: £20K or £10K for those aged 59 and under.
• The full sum insured is paid out on death after two years. On death before then, 150% of premiums paid in is paid to the customer’s estate. However, if the cause of death was an accident, three times the sum insured is paid.
• Additional benefits include RedArc’s care advice, will writing, health support, legal advice and bereavement advice.
• The minimum premium is £10 a month. The maximum is £75 a month.
• The plan is available to those aged 50-80 at outset.
• Single life only.
• Up to £5K can be paid on death to a chosen nominee with minimal formality.
Comment: Guaranteed acceptance whole life plans continually prove popular with older people, offering simplicity and ease of buying, with no risk of having to go for an embarrassing medical. However, if you live long the value for money can be poor, so it’s good to see that here premiums stop at age 90.
The serious illness benefit is relatively small, but will be welcomed by some , as will the Golden Charter link and the help insurance benefits.
Overall, if you’re looking at this type of plan, OneFamily’s has a lot to offer.
Plus points: A simple proposition; Guaranteed acceptance has appeal – especially to older people; Some built-in CI type cover; If you want a Golden Charter funeral the cash add on and direct link is valuable; Premiums stop at age 90; Range of help insurance options.
Not so plus points: Guaranteed acceptance plans offer poorer value than conventional WL plans over the long term; Relatively low maximum sums insured; Customers must opt out of the funeral funding if they don’t want it; Relatively limited CI benefit.
Rating (max 10): Overall: 7.5. Silver
Tags: WL; One Family
I Mark: No