Reliance Mutual Insurance Society has entered the over 50s life assurance market with a direct to consumer offering.
A guaranteed cash lump sum is paid if the customer dies two or more years after starting the cover, or the premiums are refunded in full if the customer dies before then.
The mutual will guarantee acceptance if the customer is a UK resident aged between 50 and 74. There are no medical questionnaires.
Premiums begin from £10 a month and cover of up to £20,000 is available.
For example, a 74 year old looking to pay £10 a month in premiums will receive £1,089 cover. The full £20,000 would cost this customer £157.59 a month.
A 50 year old customer looking to pay £10 a month would receive £4,172 in cover, while £20,000 of cover would cost this customer £42 a month.
Premiums are payable until age 90 but cover continues until the customer dies. However, if premiums are stopped before their 90th birthday the cover will stop and the customer will get nothing back.
The product is only available online and over the telephone.
Head of member recruitment Clive Allison says: “Our Over 50s plan is very straightforward, it will pay a cash sum when you die. We have designed the website to provide a no fuss journey and it includes an easy to use cover calculator which uses a person’s age and has a simple quote slider to highlight the monthly cost for different levels of cover.
“There are no ‘free’ promotional gifts on application, which always have to be paid for somewhere, as we prefer to give the maximum value within the product itself. The monies paid can be used for any purpose and there will be many different reasons why people start a plan like this. It could be to provide a valuable nest egg for someone special, pay off unpaid bills, or go towards paying the funeral expenses.”