What is the Guaranteed Inheritance Plan?
The Guaranteed Inheritance Plan is an over 50s life insurance product with a difference. But what makes it unusual in the world of over 50s life cover?
A whole-of-life plan with a substantial payout
There are a lot of over 50s life insurance plans on the market that are ‘whole-of-life’. 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 in a certain age range. They are often used to cover funeral costs.
The Guaranteed Inheritance Plan is not a typical over 50s plan, because it’s underwritten. This means that applicants answer a few questions to check that they are in fairly good health before being accepted. This can allow an insurer to offer a bigger payout than a guaranteed acceptance plan.
This is different to our Guaranteed Over 50 Plan – which offers guaranteed acceptance to anyone aged 49–85 with no medical questions.
Am I eligible?
You can apply for the Guaranteed Inheritance Plan if you are:
- aged 49 to 75
- a permanent UK resident
- with a UK bank account
You don’t need to be in perfect health. But you will have to answer a few medical questions during the application.
What do I get with a Guaranteed Inheritance Plan?
A payout of up to £50,000
Depending on your age and circumstances, you could leave up to £50,000.
The younger you are when you start your plan, the bigger your payout.
For example, a healthy 50-year-old non-smoker would leave a payout of £5,000 for just £9.55 a month, or a payout of £10,000 for just £19.11 a month.
Your loved ones can spend the money however they like. Maybe that's to cover funeral costs, put a deposit on their first home, keep as a nest egg, or something else entirely.
Full cover from day one
If you’re accepted, the Guaranteed Inheritance Plan offers full cover immediately. So it can give you and your family peace of mind 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 1–3 years of premiums paid.
A guaranteed payout – fast
As long as you pay your premiums, your payout is guaranteed. So you know your loved ones will have some financial support when you’re gone.
And, if you name your beneficiaries when you take out your plan, it won’t have to go through probate. So they’ll get their payout faster. That could be a big help at a difficult time.
Premiums never go up
Also, both your monthly premiums and payout are guaranteed to never change (unless you have requested it). So you and your family know exactly what to expect and plan for.
Simple 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.
What are the health questions?
When you apply for the Guaranteed Inheritance Plan you will be asked:
- if you have a diagnosed condition relating to cancer or your heart
- if you have a serious incurable disease
- if you are currently undergoing any medical investigations
- what support or treatment you are receiving for existing conditions
- your height and weight
Depending on your answers, you may be asked for more details.
The whole process can be done online, with an instant quote and acceptance for qualifying applications. So there’s 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 accurately and completely 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 potential inheritance tax liability. If you do not name a beneficiary(s) when taking out your plan, the sum assured may be paid to your estate and could be subject to inheritance tax.
For full product details, read the Policy Summary and Policy Conditions.