Life cover that’s also meant for living

Posted in: Products Last updated: 18 Mar 2014

Being able to claim on your Over 50s life cover policy whilst still alive isn’t the norm.

But since introducing the option to claim a cash lump sum on diagnosis of either a serious or terminal illness on its guaranteed Over 50s life cover, Engage Mutual anticipates that it will soon be paying out to its policyholders on this basis.

“The terminal and serious illness option on the plan provides real financial help when most needed, while the client is still alive,” explains sales director, Maria Harris.

“With the two year moratorium on the first policies sold now at an end, we are expecting to start receiving claims through for cash lump sums from clients who find themselves in this situation. They should provide a welcome financial helping hand at a time they might need it most.”

Policyholders diagnosed with a terminal illness after the end of the moratorium period, which applies in the first two years of the plan, can claim the full sum assured, in which case the policy would close. Those diagnosed with a serious illness after the moratorium period can claim 20% of the full sum assured. The serious illness benefit can be claimed once, leaving 80% of the sum assured available in the event of a terminal illness diagnosis, or to be paid on death.

Engage offers cover levels up to £40,000; a wide range of premiums from £10 to £75 per month dependent on the sum assured; and maximum accidental death benefit of £48,000 (the policy pays out three times the level of cover to a maximum payout of £48,000 if death occurs in the first two years solely as the result of an accident).

The plan is currently the only one of its kind to offer customers the flexibility to claim a cash lump sum should they be diagnosed with a serious or terminal illness, at no extra cost to them. It continues to offer guaranteed acceptance without a medical, affordable premiums and a simple application process.

Providing access to a cash lump sum at a time of crisis can help alleviate money worries and assist with any practical changes that may need to be made at home.

In addition, the plan includes free access to a personal nurse adviser in the event of serious or terminal illness, offered as part of a range of free services provided by Engage Health Support.

Maria Harris continued, “this is an over 50s life cover plan with a difference. It provides extra reassurance, and for the first time it offers benefits to the insured, as well as their families. It is there to support clients and their loved ones when serious or terminal illnesses can suddenly hit and options need to be considered.”

Advisers have given a ‘thumbs up’ for the clarity of the product, and complimented the fact that the serious illness benefit option can be easily applied.

Two additional services are also integral to Engage Mutual’s Guaranteed 50 Plus Life Cover: access to a free independent long term care advice service from one of the UK’s leading independent care advisers, and a no cost funeral funding option in association with The Co-operative Funeralcare, which pays a £250 contribution towards funeral costs (terms and conditions apply).

Product information: guaranteed 50 plus life cover offers:

  • No underwriting or health questions
  • Guaranteed acceptance without a medical for UK residents aged 50 - 80
  • Separate rates for smokers/non smokers
  • Guaranteed lump sum payment on death
  • Premiums from £10 per month
  • Guarantee premiums will never rise
  • Premiums cease at age 90, but cover continues (Depending on how long premiums are paid, what is paid in premiums may be more than is paid out on death)
  • In the event of death in the first two years it pays out 50% more than has been paid in premiums; or 3x sum assured, subject to a maximum of £48,000, should death occur solely as a result of an accident. It pays out the full sum assured, less any terminal illness benefit previously paid where death occurs after two years.