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When you want to compare over 50s life insurance, or searching for the best over 50s life insurance plan for you, you might get bamboozled by some of the words used, particularly in the terms and conditions. To make your life easier, we’ve simplified some of the jargon you might come across when you’re looking into
over 50s life insurance.
Accidental death benefit
An amount paid out by the insurer if you die as a result of an accident during the moratorium.
If you don’t pay a premium on time and so fall behind, you are classed as being in 'arrears'.
Over 50s life insurance is sometimes referred to as ‘assurance’ because it will pay out on your death whenever you die. This is because death is certain (assured) to happen.
Beneficiary / Beneficiaries
The person, or people, who will receive the money paid by your life insurance when you die; in other words, the people who will benefit.
The amount of protection (in reality, the money) your Over 50s life insurance will provide when you die.
See also Sum assured.
Everything you own at the time of your death including property, land, personal possessions, savings, investments and life insurance.
Fixed eg. Fixed premium / Fixed cash sum
The premium and cash sum is set on the day your policy starts and will never change.
Funeral Benefit Option
An option available with some over 50s life insurance that enables the money your policy will pay out on your death to be paid directly to a funeral director and put towards the final cost of your funeral.
As long as you meet the age requirements and are a UK resident, you will not be turned down when you apply, regardless of your health.
The general increase in the price of goods and services over time. According to the
Office of National Statistics, in 1980 £1 bought nearly three loaves of bread. Today £1 would only buy one loaf. With over 50s life insurance, the cash sum is fixed, so inflation will reduce its value over time.
The named person on whose death the policy will pay out.
The amount of time you must wait before Over 50s life insurance will pay out the full cover amount. For example, two years from the start of the plan.
No medical insurance
Insurance that only requires you to meet age and residency criteria - your health is irrelevant. For other types of life insurance eligibility and the amount of cover offered is usually determined by your health and lifestyle.
The contract between the insurance provider and the person taking out the insurance.
The documents you receive when you take out over 50s life insurance. These include the policy schedule detailing the life assured, cover and payment details as well as full terms and conditions. These should be kept safely as they will be needed to make a claim.
The legal owner of the insurance policy. Whilst the policyholder is often the same person as the life assured, this is not always the case.
This is the amount of money you must pay every month for the rest of your life. Some over 50s life insurance has the option to pay up to a certain age.
The amount of money the insurer will pay out when the policyholder dies. The sum assured can also be called the cover, lump sum, cash sum or payout.
Written in trust
A trust is a legal arrangement that lets you confirm who should receive the payout from your life insurance. Writing your policy in trust means the payout will be outside of your estate for inheritance tax purposes and does not need to go through probate, so your loved ones could get access to the money more quickly.
Whole of life cover
Exactly what it says. As long as you keep paying your premiums when they are due, you will be covered for the rest of your life and the policy is guaranteed to pay out whenever you die.
We hope this has helped to make over 50s life insurance a little clearer for you. Now you understand the key terms, it should be easier to find the best over 50s life insurance for you.
If this information has been helpful, you might also like to find out
how the Guaranteed Over 50 Plan works and
how much the Guaranteed Over 50 Plan costs .
SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, pet insurance, ISAs and Will writing services.
Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.
Who are SunLife?
AXA Wealth Ltd trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. AXA Wealth Ltd is a company limited by shares and the registered office is at 1 Wythall Green Way, Wythall, Birmingham B47 6WG (registered in England, No. 01225468). AXA Wealth Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AXA Wealth Ltd is entered on the Financial Services Register (registration no. 119201).
AXA Wealth Services Ltd distributes financial products and services and trades as SunLife. AXA Wealth Services Ltd is a company limited by shares and the registered office is at 1 Wythall Green Way, Wythall, Birmingham B47 6WG (registered in England, no. 02238458). AXA Wealth Services Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 465753).
‘SunLife’ (comprising of the companies AXA Wealth Services Limited, AXA Wealth Limited and AXA Sun Life Direct Limited) has been acquired by Pearl Life Holdings Limited (and now forms part of the Phoenix Group -
www.thephoenixgroup.com). ‘AXA’ is a trademark that is owned by AXA SA and will be used for a short period under a licence granted by AXA SA to the Phoenix Group.
Pearl Life Holdings Limited is registered in England (4560778) at 1 Wythall Green Way, Wythall, Birmingham B47 6WG. As part of the Phoenix Group, AXA Wealth Limited will continue to be authorised by the Prudential Regulation Authority and regulated by Prudential Regulation Authority and Financial Conduct Authority. AXA Wealth Services Limited will continue to be regulated by the Financial Conduct Authority.
You can contact us by post at SunLife, PO Box 7054, Willenhall, WV1 9ZH or by phone on 0800 008 6060. As part of our commitment to quality service and security, calls may be recorded.
If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan the funeral services are arranged and provided by Dignity Funerals Limited. Dignity Funerals Limited is a company registered in England and Wales No. 00041598. VAT registered No. 486 6081 14. 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands, B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 808. Part of Dignity plc. A British Company. Dignity are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority but are registered providers with the Funeral Planning Authority.
Who provides the Funeral Plans?
The funeral services are arranged by a funeral director selected by Golden Charter Ltd. Golden Charter Ltd are not required to be authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority in relation to funeral plans but are registered providers with the Funeral Planning Authority.
If you choose to pay for your funeral in one go, with a single payment, you will have a contract with Golden Charter. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.
If you choose to pay for your funeral with a life insurance policy, the policy will be provided by AXA Wealth Ltd, trading as SunLife. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.
Who provides My Smarter (ISA)?
My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.
Who provides the Will writing services?
Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).
The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.
Who provides Family Life Insurance?
SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.
Who provides SunLife Pet Insurance
SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.
Who provides SunLife Home Insurance
SunLife Home Insurance is arranged and administered by One Insurance Solution which is a trading style of Brightside Insurance Services Ltd who is authorised and regulated by the Financial Conduct Authority (Firm reference No. 302216). Registered in England and Wales No 04137311. Registered Office: Brightside Park, Severn Bridge, Aust, Bristol, BS35 4BL. VAT no: 851 1469 32