The whole of life policy guarantees acceptance for UK residents aged 50 to 80 without a medical, regardless of any pre-existing medical conditions.
The amount of cover is determined by clients’ gender, age and smoking status. Engage Mutual’s rate tables show the amount of cover available within five premium bands that range from £10 to £75 a month. Premiums are guaranteed and payment of them will stop at the age of 90, but the cover continues. The plan will pay out a tax-free lump sum on death.
The maximum level of cover is now £40,000, which is available to 50-year old female non-smokers paying premiums of £75 a month. A funeral funding option providing £250 towards the client’s funeral from The Co-operative Funeralcare has been added along with the option for free long term care advice.
Cover is restricted to 150 per cent of premiums paid if death occurs in eth first two years but if death in this period is the result of an accident, Engage Mutual pays out three times the sum assured subject to a £48,000 maximum. The maximum before the revamp was £32,000.
Defaqto insight analyst for life and protection Ben Heffer says: “The plan also has the edge on its competitors with the highest available sum assured of £40,000 and premiums up to £75 payable to age 90. In common with only a few providers, it offers a funeral plan option and a care helpline. The premium to sum assured ratio represents good value for money for people aged 50 and 60 but represents poorer value for money for people aged 70.
“The plan is one of a very few offered via IFAs in a direct to consumer dominated market, but with the high sum assured, IFAs may well find this plan to be an option for their clients who do not want to submit to underwriting.”