Saga Guaranteed Life Insurance
Saga’s new plan is underwritten by PruProtect and is a guaranteed life insurance policy for those aged between 50 and 85 living in the UK.
Premiums are fixed for life at outset, as is the sum assured. On death within the first year, all premiums are returned but the full sum assured is payable after one year (compared to two years on many similar plans) or on accidental death at any time.
Acceptance is guaranteed regardless of health and, on acceptance, customers also get a £20 Marks & Spencer voucher. If the sum assured is used to pay for a funeral with Co-operative Funeralcare, it will pay an additional £250 towards the costs i.e. customers effectively get a £250 discount on their funeral.
Premiums cease at the policy anniversary after the customer’s 90th birthday but benefits are whole life. The literature also says: ‘We’re currently able to offer you and your family access to a free and confidential service offering practical and emotional support at a time of need’. However, we could not find reference to that in the policy provisions and assume that this is simply an additional extra contractual service. Whatever it is, we think it’s probably a good thing!
Customers can also choose to ‘take the Saga Challenge’. This means phoning the freephone number (below) and answering four simple questions regarding their health. If those answers are satisfactory, the sum assured is automatically increased by 15% and the plan also offers full payout from day one, rather than having a one year accidental death only full sum assured.
Plus points: Simple product with fixed rates and guaranteed acceptance and just a one year rather than two year initial ‘waiting period’ before full cover kicks in; The Saga Challenge offers the prospect of better cover for answering just four questions with no downside too—if the customer is not accepted for this, they still get the basic plan benefits; Additional £250 if the funeral is arranged through the Co-op and a £20 M&S incentive also encourages take-up of the plan.
Not so plus points: We have criticised the value for money element of such plans before and this plan is no different—a long living customer could find that they pay in rather more than their family gets out; Many customers would be better off consulting an IFA who could then choose the most appropriate cover for them, although the risk is then that they may be rated or rejected by the insurer.
Website: http://www.saga.co.uk.
Rating (max 10): Innovation: 7. Overall: 6. Bronze.