Nationwide re-launches new life cover options for over 55s

Nationwide has announced the launch of the new Over 55s Life Cover Plan. The new plan has significant product enhancements specifically designed to meet the changing needs of customers and includes the introduction of a Funeral Benefit Option.

Whilst death may not be an easy topic of conversation, it is nevertheless an important fact of life which requires people to plan ahead. For some, this means providing a small nest egg for their family and loved ones and for others it is to provide funds to help towards funeral costs.

Demographic change has resulted in an increased number of people aged 55+ and this upward trend is predicted to continue for many years to come. The Over 55s Life Cover Plan, provided by AXA Sun Life, has been specifically designed to meet the protection needs of the older generation and is now available to people aged between 55 and 80 (the maximum age was previously 75) and includes guaranteed acceptance which, unlike some forms of life cover, does not require people to provide details of their medical history. The Over 55s Life Cover Plan also includes the following new cover options:

Fixed and Increasing Cover

Fixed Cover provides fixed premiums and a fixed cash sum payable on death after two years.

The Over 55s Life Cover Plan now includes a new feature, known as the Increasing Cover option. This allows customers to increase the cash sum payable on death by 5% of the starting cash sum each year. In return for providing this additional cover, the monthly premium will also increase by 5% of the starting premium each year.

This Increasing Cover option is of particular benefit to customers who wish to help guard against future price rises and therefore go some way to offset the affects of inflation.

Funeral Benefit Option

The Over 55s Life Cover Plan also now includes a new feature, known as the Funeral Benefit Option. This option is specifically designed for customers who want the plan proceeds (cash sum) to contribute towards their own funeral. In return for selecting the Funeral Benefit Option, a contribution of £250 will made by The Co-operative Funeralcare for any funeral arranged through them when the time comes.

The Funeral Benefit Option has been introduced to provide assistance towards rising funeral costs. Research predicts that by 2014 the average cost of a funeral will have risen by 31% to £3,581.

Robin Bailey, Nationwide's insurance director, said: "Most of us want to make sure that we leave our financial affairs in order after we've gone. For a lot of people, a top priority will be making sure funeral costs are taken care of. For a monthly outlay, people can have the reassurance that, even if they are in their 60s and 70s, after two years, a useful cash sum could be paid towards the cost of their funeral or provide a nest egg for their family and loved ones."