Life cover for over 50s launched by AA Financial Services
The AA has launched a new low-cost life insurance policy for those aged 50 and over, adding to its award-winning life insurance range.
Known as ‘AA 50 Plus Life Insurance' and provided by Friends Provident, it is a whole of life plan which provides a guaranteed cash sum on death of the life assured. The AA believes it is the most affordable product of its type on the market.
The AA already offers award-winning best-buy level term and mortgage protection life insurance and critical illness cover.
Mark Huggins, director of AA Financial Services says: "The beauty of the AA 50 Plus plan is its simplicity - it does just what it says it does. It's easy to start and there's no medical underwriting or complex form-filling.
"Customers can pick their premium rate, which of course will influence the sum assured. You are guaranteed to qualify providing you're a UK resident aged between 50 and 80 at the time of application.
"Applications can be made online, by post or telephone," he adds.
Mr Huggins says that those approaching their 60s most commonly buy life products of this type to put towards their funeral costs, when they don't want to explicitly buy a pre-paid funeral plan However, the proceeds of the new policy can be used for anything.
"Funeral fees have gone up substantially over recent years while recent reports suggest that many hard-pressed councils throughout the UK are substantially increasing both burial and cremation costs. It's really important - if difficult - to think about how such costs are going to be met. This plan could help families cope with such expenses."
The minimum premium is £4.99 per month and the maximum £49.99.
For a man aged 50, the sum assured would be £1,371 at £4.99 per month and £19,043 at £49.99. However, the plan can be started at any age between the applicant's 50th and the day before their 81st birthdays.
If the customer dies during the first two years of the plan, 1.5 times the total premiums paid will be returned, not the sum assured. However, if death results from an accident during this period, the full sum assured will be paid.
"The 50 Plus policy can provide a useful cushion for loved ones at a time when many life policies, such as mortgage protection cover, will have run their course," Mr Huggins points out.
"It also means that you can still obtain life cover, even if you know you have health issues.
"I'm sure that as many people get older, they believe that life cover is not available or not affordable. AA 50 Plus puts life insurance within reach, even up to age 80."
AA 50 plus
The new AA 50 Plus Life Insurance provides a guaranteed cash sum on the death of the life assured.
It is non-qualifying for tax purposes
It does not require any underwriting at application
No medical is needed
A whole of life plan, available as single-life only; with guaranteed acceptance
Premiums range from £4.99 to £49.99, paid monthly
If the customer dies during the first two years of the plan, 1.5 times the total premiums paid will be returned, not the sum assured. However, if death results from an accident during this period, the full sum assured will be paid
Premiums continue to be paid until the assureds' 90th birthday: if the policy is lapsed (ie through non payment of premiums) it has no value
A £30 Boots voucher is sent to every new applicant; £40 for AA members.
For more information on AA Life Insurance, visit theAA.com.