What is the Guaranteed Inheritance Plan?
Last updated 23rd January 2023
3 min read
The Guaranteed Inheritance Plan is an over 50s life insurance product aimed at providing a nest egg for loved ones upon death. But what makes it unusual in the world of over 50s life cover?
A whole-of-life plan with a substantial payout
Through market research, a number of people aged over 50 were interviewed about their views on inheritance. The findings showed that lots of them were keen to leave a cash gift for their loved ones on top of any items or property that they might pass down.
They want to leave financial support that covers more than just immediate expenses such as funeral costs. So, the Guaranteed Inheritance Plan was developed to offer a significant cash payout of up to £50,000.
Beyond funeral costs
There are a lot of over 50s life insurance plans on the market that are ‘whole-of-life’ plans. This means you’re covered for your whole life (as long as your premiums are paid) rather than just a set period of time (called ‘term’ insurance).
Many of these plans accept anyone within a certain age range, and are often used to cover funeral costs.
The Guaranteed Inheritance Plan is different from a typical over 50s plan, because it’s underwritten. This means that applicants answer a few health questions, which can allow an insurer to offer a bigger payout than a guaranteed acceptance plan.
Full cover from day one
If you’re accepted, the Guaranteed Inheritance Plan offers full cover from the day your policy starts – giving peace of mind for you and your family from day one (with some exceptions – see Important to know). This is unusual for an over 50s plan, which often only offer full cover after one to three years of premiums paid.
Also, both your monthly premiums and payout are guaranteed to never change (unless you have requested it), meaning you and your family know exactly what to expect and plan for.
Simple and straightforward application
At SunLife, we believe it’s better to keep things as simple as possible. That’s why the number of health questions on the application form is kept to a minimum. You’ll only be asked a few key health questions when you apply for the Guaranteed Inheritance Plan, and to give a few extra details depending on your answers.
The entire process can be done online, with an instant quote and acceptance for qualifying applications, and no long-winded paper forms.
Important to know
- Premiums are payable for life. If you stop paying your premiums your insurance will end and you won’t get anything back.
- Depending on how long you live, you could pay more in premiums than the cash sum paid out.
- Because the cash sum is fixed, inﬂation will reduce its buying power over time.
- You must answer all the application questions truthfully and accurately in order to get the guaranteed payout.
- Acceptance and the premium for any given payout is dependent on your age, lifestyle and medical history.
- Cover begins immediately, although in the first year, suicide or death from self-inflicted injury are excluded.
- This product does not provide cover for inheritance tax, but the payout may affect your inheritance tax.
For full product details, read the Policy Summary and Policy Conditions.