Over 50's Life Plan

Its aims

To provide:

• a fixed cash sum on your death.

Your commitment

• To pay a regular monthly premium to age 90.

Risks

• If your circumstances change and you stop paying the premiums under this plan, your life cover will end immediately.
• The plan has no cash in value at any time so if you cancel it after the first 30 days you will get nothing back.
• Your life cover under this plan does not start until after the second anniversary of the plan start date, unless your death is accidental in which case your life cover begins from the start date on your plan document.
• Over time, although the amount we pay out on death is fixed, this amount is likely to reduce in value because of the effects of inflation.
• If you live long enough the total premiums you have paid may be greater than the amount payable on death.

Questions and answers

What is the Over 50’s Life Plan?

The plan is a ‘whole of life assurance’. ‘Whole of life’ plans do not have a defined term and provide an amount of money on death.

Who can have this plan?

The plan can be taken out by anybody between the ages of 50 and 75.

If you have used tobacco products or nicotine replacement therapy within the last 3 years, you will need to tick that you are a smoker on the application form. 

Under the plan we guarantee to accept your application without medical underwriting.

How much can I pay?

You choose how much you want to pay into your Over 50’s Life Plan subject to a minimum contribution of £10 a month and a maximum of £50 a month.

If you want to increase the amount payable on your death or you wish to pay more, you can always take out another plan as long as you are between 50 and 75 and the total premium under all your policies does not exceed the maximum of £50 a month.

The rate tables are available on request.

Premiums are payable monthly by direct debit.

What are the benefits of the Over 50’s Life Plan?

Your acceptance is guaranteed and the premium you pay is guaranteed never to rise.

This plan includes a funeral benefit option provided by Golden Charter which can be selected at outset. Golden Charter will contribute an extra £250 towards the cost of your funeral.

What happens when I die?

Contact should be made with us by phone on 0161 428 1212 and our Claims Department will explain the next steps.

We can also be contacted by: email: info@ shepherdsfriendly.co.uk , or letter: Shepherds House, Stockport Road, Cheadle, Cheshire, SK8 2AA.

In processing a claim when you die, we may request medical reports to establish the cause of death.

If these reports confirm that you did not properly disclose your status as a smoker at the time of your application, the amount we pay out will be reduced to that of the associated smoker rate applicable at the time of your application.

If you have chosen the funeral benefit option, Golden Charter will receive your sum assured on death to provide your funeral. The contribution of £250 will either be added to your sum assured or discounted from the total funeral cost.

Are there any restrictions on the benefits payable?

If the plan has been in force for less than 2 years and you die of natural causes we will pay out one and a half times the total premiums paid to date.

If the plan has been in force for less than 2 years and your death is caused by an accident then we will pay the amount of life cover that is stated in your plan.

If you have chosen the funeral option within the Over 50’s plan and you die within the first two years, the full cash sum will not be payable.

Instead we would pay Golden Charter one and a half times the premiums paid – the cash sum would be used towards your funeral and you would still be entitled to the £250 contribution.

What happens if the sum assured is different to the cost of my funeral?

If you have selected the funeral benefit option and your funeral is less than the sum assured provided on death, your estate will receive the difference. However if your funeral is more than the cover selected the estate will need to settle the difference with the funeral provider.

Once I have applied what if I change my mind?

Once we have received and processed your application we will send you the plan documents. Included with these will be a “right to cancel” notice. If you are not happy that you have done the right thing then just return this notice to us within 30 days and we will then refund any premiums paid.

What happens if I stop paying my premiums after the 30-day cancellation period?

Please note that if you do stop paying the premiums before age 90, cover will cease and a lump sum will not be payable on your death. This plan has no encashment value and therefore you will not receive any money back if you stop paying the premiums.

What will I get back if I have to surrender my plan? ?

It is not a savings plan and does not provide a cash early exit value at any time.

What about tax?

Based on our current understanding of HM Revenue and Customs guidelines, any money paid to your estate will be free of capital gains or income tax. Please note however that if your plan is not written in trust, it will form part of your estate and may be subject to inheritance tax.

To ensure the full value of the money we pay out under this plan is used in accordance with your wishes, you may wish to seek legal advice and possibly make a Will.

Where can I find out more?

Before your plan starts we will send you the full terms and conditions. These explain how the plan works. If you would like to see these terms and conditions before you apply, please contact us: Phone: 0161 428 1212
Fax: 0161 428 3666
e-mail: info@shepherdsfriendly.co.uk
Web: www.shepherds.co.uk