Over 50s Life Insurance More than a memory

Transcription

1 Over 50s Life Insurance More than a memory Put what you can in place for those you care about. Whether it s to help contribute towards the costs of your funeral, or simply as a gift that could help make a difference to your loved ones.

2 Make a difference to your loved ones Leaving a gift for your grandchildren is a special way to show just how precious they are. You may wish to use your cash sum as a gift to give your grandchildren a head start in life. They could put it towards their first car, a computer, university fees or maybe something special to remember you by. You could ensure your grandchildren receive any cash sum due from your plan by placing it in Trust.

3 Increasing life cover for you Wouldn t it be great to leave your loved ones a useful cash sum when you re no longer around? Our Over 50s Life Insurance Plans are designed to meet the demands and needs of people aged 50 to 80 who don t have funds to help contribute towards funeral costs or to leave as a gift to family and want a fixed cash sum to give to their loved ones when they die. It s for people who want guaranteed acceptance with a simple application process and would prefer not to answer medical or lifestyle questions. Over 50s Increasing Life Insurance plan at a glance Guaranteed acceptance for UK residents aged 50 to 80. There may be other products available if you want to answer lifestyle and medical questions. No medical or health assessment. Premiums start from 5 a month, depending on your age. Choose a premium that you can afford now bearing in mind that it will increase over the years which could give you a cash sum that meets your needs. Please refer to the enclosed premium tables for more information. Helps keep pace with inflation. Your cash sum will be reviewed each year in line with the change in Retail Prices Index (RPI). Your premium will increase by the change in RPI multiplied by 1.5. Eligible to claim after one year, regardless of the cause of death or within a year due to accidental death. If you die within the first year of starting your plan, your premiums already paid will be returned. You stop paying premiums on your 90th birthday, but your cash sum continues to be reviewed each year, in line with the change in RPI for the rest of your life. Provides lifelong cover, as long as you continue to pay your premiums. Things you need to know Depending on how long you live, total premiums paid to us may be greater than the cash sum payable on death. If you stop paying premiums when they are due, the plan will be cancelled and you won t get anything back. This is not a savings or investment product, and has no cash value unless a valid claim is made. If you are worried that you won t be able to afford the increases in future, you can decline the increases following your annual review. If you do this the cash sum will remain at the same value from that point, but inflation will reduce the buying power of your cash sum in the future. RPI may not keep up with the future rises in funeral costs. Therefore the cash sum you receive may not cover the cost of a funeral. You can take out more than one plan with us as long as the total cash sum for all your plans added together is not greater than 10,000. This includes any existing Over 50s plans you may have with us. For existing plans taken out on or before 25 November 2017, please refer to your Policy Terms and Conditions for your total sum assured value.

4 Increasing your cash sum in line with inflation With our Increasing Plan you can help ease the financial burden on your loved ones at a difficult time. The plan will pay out a cash sum should you die after one year, which could be used to help contribute towards funeral costs, outstanding bills or other debts. When you take out the plan you can choose the initial level of cover and premium to suit your circumstances. Your cash sum will then be reviewed each year in line with the change in RPI. Your premium will increase by the change in RPI multiplied by 1.5. The premium increase is higher, because insurance costs more the older you get. We will write to you each year to let you know the outcome of the annual review and how this changes your premium and cash sum. If you are worried that you won t be able to afford the increases in the future, you can decline the increases following your annual review. Remember, you won t be able to increase your cash sum or premium in future years, they will remain fixed at their current value at that time and inflation will reduce the value of the cash sum. What is RPI? The Retail Prices Index (RPI) is used as a measure of inflation. It measures the changing prices of everyday household goods and services like food and energy bills, and shows how inflation rises over the years. How does the increasing plan work? Here s an example to help explain how the Increasing Plan works. A 65-year-old might pay 20 a month for an Increasing Plan, which has a cash sum of 3,814 when the plan starts. After one year we would review the cash sum in relation to RPI. If RPI was 3% this would mean: The monthly premium would rise by 4.5% ( 0.90) to The cash sum would rise by 3% ( 114) to 3,928. If RPI was less than or equal to 0%, there would be no increase in the cash sum and the premium will remain the same. If RPI rose to over 10%, the maximum increase in the cash sum would be 10% and the maximum increase in the premium would be 15%. Increasing plan estimated cash sum* Cash sum 6,000 4,000 2, ,814 4,421 5,126 5, * Source: Legal & General, June 2017, based on a 65-year-old paying an initial premium of 20 per month.

5 Prefer to pay a fixed premium? Alternatively, you could choose to take out our Fixed Plan from the beginning, where you ll get a fixed cash sum and monthly premium that are guaranteed never to increase once the plan starts. Whilst this means you ll leave a smaller cash sum, it could still be a comfort to your loved ones. Over 50s Fixed Life Insurance plan at a glance Things you need to know Things you need to know Guaranteed acceptance for UK residents aged 50 to 80. There may be other products available if you want to answer lifestyle and medical questions. No medical or health assessment. Premiums start from 5 a month, depending on your age. Eligible to claim after one year, regardless of the cause of death or within a year due to accidental death. If you die within the first year of starting your plan, your premiums already paid will be returned. Flexibility, to reduce your premium after one year if your circumstances have changed. Minimum premium applies. You stop paying premiums on your 90th birthday. Provides lifelong cover, as long as you continue to pay your premiums. Fixed plan cash sum* Cash sum 6,000 4,000 3,814 3,814 3,814 3,814 Depending on how long you live, total premiums paid to us may be greater than the cash sum payable on death. If you stop paying premiums when they are due, the plan will be cancelled and you won t get anything back. This is not a savings or investment product, and has no cash value unless a valid claim is made. If you choose to reduce your premiums, your cash sum will also be reduced. When choosing your monthly premium it s important to consider that the cash sum provided by the Fixed Plan does not increase with inflation. This means that the cash sum would stay the same, but inflation will reduce its value in the future. You can take out more than one plan with us as long as the total cash sum for all your plans added together is not greater than 10,000. This includes any existing Over 50s plans you may have with us. For existing plans taken out on or before 25 November 2017, please refer to your Policy Terms and Conditions for your total sum assured value. 2, * Source: Legal & General, June 2017, based on a 65-year-old paying an initial premium of 20 per month.

6 A helping hand with rising funeral costs When you ve spent all your life taking care of your loved ones, the last thing you d want is to leave them with financial worries. That s why it pays to plan ahead and think how your loved ones would afford to pay for your funeral. The cost of a funeral has been rising each year. As you can see from the chart, the average cost of a funeral in the UK in 2016 was 3,937*. If the average cost continues to rise at the same rate as it did between 2011 and 2016, then by 2021 it could rise to as much as 5,217**. This means that if you were to take cover with a fixed cash sum for the average cost of a funeral today, it may not be enough in the future. The benefit of our Increasing Plan is that the cash sum helps keep pace with inflation as measured by RPI. It does not guarantee to cover the full costs of a funeral as RPI may not keep up with future rises in funeral costs. Depending on your circumstances your family or partner may be eligible for state support in paying for funeral costs. More information can be found at The figures mentioned here and in the chart below aim to help you understand how rising prices affect your cover. The cost of a funeral may be more or less than the amounts we have used. Estimated funeral costs Funeral costs 8,000 6,000 4,000 2, ,971 3,937* 5,217**

7 Applying is easy We ve given you everything you need to know to arrange cover straight away. Plus, don t forget that your partner can apply too, as long as they re a UK resident aged 50 to 80. Follow these three simple steps to apply: Read all the information carefully including the Policy Summary to decide which plan is right for you. Choose how much cover you would like, taking into account the monthly premium you can afford. Remember this may increase in the future if you choose the Increasing Plan. Complete your application form and direct debit instruction, and then return it in the prepaid envelope enclosed.

8 Legal & General Partnership Services Limited Registered in England and Wales Number Authorised and regulated by the Financial Conduct Authority. Legal & General Assurance Society Limited Registered in England and Wales Number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office for both firms: One Coleman Street, London EC2R 5AA W /17