First established in 1836, Legal and General is among the United Kingdom’s leading financial services group. This organisation boasts over 7 million customers and uses services such as general insurance plans, life assurance, pension, and investments.
Legal and General is also responsible for investing over £400 billion on behalf of their investors worldwide. Aside from the services mentioned above, Legal and General also offers its customers an Over 50 Life Insurance Plan that provides older policy seekers both a Fixed Plan and Increasing Plan option.
Legal and General’s Over 50 Life Insurance Fixed Plan
The Fixed Plan offered by Legal and General provides policy seekers with many great benefits. To begin, this plan provides guaranteed acceptance to individuals between 50 and 80 years of age that have established permanent United Kingdom residence.
Additionally, this acceptance is offered with no medical exam or health questions asked with plans beginning as low as £8 a month. Legal and General also offers applicants a Funeral Benefit Option that can provides an additional £250 toward funeral costs to further aid loved ones with costly burial expenses.
Where the Fixed Plan becomes unique from other over 50 life insurance plans is how the premium payments and cash sum payment are evaluated. The Fixed Plan offers applicants premium payments that are guaranteed to never increase along with coverage that will never decrease.
Although this plan is more affordable for those working on a budget because of these fixed payments, it is also important to remember that the cash sum payout may be affected by inflation – inflation may cause this payout amount to lose value over time.
Another important note to make with the Fixed Plan offered by Legal and General is that since the payments are fixed, a policyholder may end up paying more into his or her life insurance plan than the final cash sum payout is worth. But, if the policy holder should pass away from natural causes within the plan’s first year, the payments made into the plan will be returned to beneficiaries.
If the policy holder should pass away from an accident or any time after the plan’s first full year, the entire cash sum payout will be honoured and can be used toward funeral costs or any outstanding debts.
Legal and General’s Over 50 Life Insurance Increasing Plan
The Increasing Plan offered by Legal and General works much in the same way as the Fixed Plan – residents of the United Kingdom between 50 and 80 are offered guaranteed acceptance as well as no health questions asked or medical exam requirements.
Also, plans still begin as low as £8 a month depending on age and features chosen and the Funeral Benefit option is still available for those policy seekers choosing the Increasing Plan. Where these plans differ is how premium payments and cash sum payout is evaluated every year.
The Increasing Plan is a great choice for those individuals looking to guarantee the amount of the cash sum payout for their loved ones. With this plan, premium payments and this cash sum are reviewed annually in line with the fluctuations in the Retail Prices Index, or RPI, to help protect the policy’s cash sum from the effects of inflation.
The change in RPI is multiplied by 1.5 and then compared against the policy’s current cash sum amount and monthly payments. This helps insure the cash’s value does not decrease but may cause premium payments to increase and change over time.
Just like with the Fixed Plan, Increasing Plan holder’s premium payments will be refunded if they pass away from natural causes within the policy’s first year. Also, if the policy holder dies from an accident or for any reason at any time after the policy’s first full year, the total coverage amount will be granted to beneficiaries.
Another great benefit of Legal and General’s Over 50 Life Insurance plan is that once the policyholder reaches his or her 90th birthday, premium payments stop and coverage will continue until the end of his or her life.
Review of Difference Between Legal and General’s Over 50 Fixed and Increasing Plans
It is important to remember that the quality of coverage offered is the same regardless if the policy seeker chooses the Fixed Plan or Increasing Plan. Where the difference lie is in how the premium payments and cash sum payout are handled. Fixed Plan premiums remain the same throughout but the cash sum may decrease over time because of inflation.
The Increasing Plan offers a cash sum value that will not decrease but premium payments may fluctuate. Both policies also offer a Funeral Benefit Option and premium payments that stop when the policy holder reaches his or her 90th birthday.
It is important to choose a policy based on the amount of coverage needed and what can be afforded on the policy seekers budget. Whichever plan is chosen, it is comforting to know that Legal and General has been offering older residents of the United Kingdom comprehensive coverage for over 100 years and has developed its Over 50 Life Insurance Plan specifically to meet the needs of older UK residents.
When a policy seeker needs and desires are matched with a great life insurance plan, he or she will have peace of mind of knowing his or her family and loved ones will be financially care for when he or she passes away.