Rias Over 50s Life Plan
Part of the Fortis group, Rias was established in 1992 and is a specialist provider of insurance products for the over 50s age group. This plan is underwritten by sister company Fortis Life UK.
The plan provides UK resident customers aged 50-75 with a guaranteed acceptance whole of life plan with no medical questions. Premiums start at £5 a month and are available in £5 multiples up to £50 a month.
A male aged 60 would get £5,666 of cover for £25 a month or £11,983 for £50 a month. For a female of the same age the sums insured would be £7,348 and £15,507 respectively. Premiums can be index linked (a facility which drops away if not exercised three years running). The index used is the Retail Prices Index (RPI).
If the sum insured is used to fund a funeral provided by Dignity, it is increased by 10%. If death is due to an accident within the first two years, the sum insured is trebled. If death within the first two years is from any other cause, the customer’s estate is paid 150% of premiums paid. Premiums stop at age 90, although cover continues.
Taking out a plan qualifies a customer to get one of three free gifts (one night’s hotel stay, a £25 M&S voucher or a digital photo frame).
Plus points: Simple, guaranteed cover with no medical questions; Pays three times the sum insured on death by accident within the first two years or 150% of premiums paid on other deaths within two years; 10% extra if the sum insured is paid to Dignity for the funeral; Premiums stop at age 90.
Not so plus points: A 60 year old would have paid in more than the sum insured by the time he reached age 80; By far the best value is death by accident within the first two years (why?); Could be a useful short-term savings plan for those expected to die within two years (but only if they do die).
Website: http://www.rias.co.uk.
Rating (max 10): Innovation: 4. Overall: 4. Unclassified.