A New Over 50s Life Cover Plan Launched by Sainsbury’s Finance

Life Insurance is one of those areas that is constantly recommended by insurance providers, but people still seem to go without, possibly due to the morbid nature of thinking about death and also because during times of economic turbulence insurance is often the first thing to disappear from the household.

But insurance providers will always point out that life insurance can offer a person peace of mind in regards to their loved ones. After their passing, they will be secure at least financially particularly if that person was the main breadwinner.

Now Sainsbury’s Finance has launched a new Over 50s Life Cover Plan, which aims to insure people above the age of 50. The insurance policy can be taken out by anyone who is above the age of 50 and below the age of 74, with premiums continuing until the person is 90, after which the person is still covered by the policy but the premium will have ceased.

Provided by the Legal & General Assurance Society Limited, the Sainsbury’s Finance Over 50s Life Cover Plan begins with premiums starting at around £8 a month and boasts that no medical is required and once a premium is settled it will stay at that amount for the duration of the policy plan.

“These policies can make a lot of sense if you want to leave a tax-free sum to your partner and loved ones when you die,” said Lucy Hunter, the Life Insurance Manager of Sainbury’s Life Insurance, “Also, with no medical required and applications accepted online or on the phone, our Over 50s single life cover plan is easy to apply for.”

In addition to the offers outlined above, the plan also lets the individual choose how much cover they require and can choose from a range of premiums that are relevant to age and gender. The Insurer also points out that the cover increases by 10% without an increase in premiums after 5 years.

It was recently revealed by LV= that more people have Pet Insurance than Life Insurance and the problem was highlighted further by a press release from Direct Line, who were offering £15,000 of free Accidental Death Cover for one year as long as the person sought a quote over the phone.

Source: Sainsbury’s Finance Earlier in 2009

Offering Accidental Death Cover

It’s not uncommon to put thoughts of life insurance aside and think about happier things. After all, who wants to think about their own death or the demise of someone close to them? However, life insurance is something that can provide for loved ones after one’s untimely passing, making it highly necessary in a range of circumstances.

But insurance providers are regularly concerned by the low numbers of people that have cover in the event of their death, with companies such as LV= recently citing that more people have pet insurance than life insurance.

Their study, which was carried out as part of the “Look After What You Love Index”, highlighted that 4% of people questioned did not have life insurance, which is out of sync with the thoughts of most people who wish to ensure their families are well protected during the credit crunch.

Now Direct Line is offering their hand in easing the problem, by offering £15,000 of free accidental death cover for a single year, providing they seek a quote over the phone.

Whilst life insurance is something someone might not want to think about, they urge people to take steps to give them peace of mind should anything go wrong.

Direct Line offers two forms of life insurance – Fixed Term Life Cover and Mortgage Life Cover, both of which feature a £30,000 sum assured for those that die under the age of 40, dropping to a minimum sum assurance of £20,000 over the age of 40.

“There really is no time like the present for people to be considering their options when it comes to life insurance,” says Paul Cowman of Direct Line, “To some, life insurance seems like an unnecessary expense. But if you have people who depend on you and your income, you need it.”

He also points out that any financial plan should include life insurance, with it making up an important part of the family’s financial future. It means that if something was to happen then at the very least there will be no money issues to worry about.

During the economic crisis it is not uncommon for people to cut back on certain expenses, including insurance, so time will tell if more people start taking out life insurance policies.

Sources: Easier.com and MyFinances.co.uk

The Friendly Society Reveals Aspects of its Survey

LV=, the group also known as Liverpool Victoria Friendly Society Limited that seeks to help people with their financial situations, has revealed aspects of its recent study and concludes that life insurance should be encouraged more than it is already.

Their study, which was tasked with discovering where people’s priorities lie during the credit crunch, found that in general, three times more people had pet insurance than other forms of insurance such as income protection or critical illness protection, whilst 4% of the UK public did not have life cover.

The “Look After What You Love Index”, as LV= calls it, is a scheme to track people’s life priorities and how their financial transactions match up to these priorities. They point out that in a lot of cases, people’s actions do not match set priorities and the group is concerned that fewer than one in twenty people do not have insurance to replace lost income. This is despite the top 4 priorities for the nation’s public including family health at 1, quality time with friends and family at 2, personal health at 3 and maintaining current level of income at 4.

Speaking about the results Mike Rogers, LV= group’s chief executive commented in regards to the figures in comparison to those with Pet Insurance, “Three times as many people have pet insurance as have income protection cover, and only one in ten have critical illness insurance. Ideally people should protect all of the important things in their lives, but our study shows their actions don’t match their words.

“This may be due to lack of awareness or a mistaken belief that protecting income and health is very costly. Whatever the reason, now is the time for people to review what financial protection they have in place to cover their key life priorities and take action to bridge any gaps.”

Three times as many people having pet insurance than life covers is particularly concerning for the group and to put this into perspective, a Sainsbury’s Finance survey earlier in the year found that only 26% of pet owners have pet insurance.

Rogers also adds, “insuring the breadwinners in the family for loss of income will make only a modest impact on most people’s finances, yet can provide vital assistance if the worst should happen.”

Sources: LV= Press Release & MyFinances.co.uk June/July 2009