Information and Benefits of Legal and General’s Over 50 Fixed Plan and Over 50 Increasing Plan:
The Legal and General Group is one of the United Kingdom’s leading financial services companies. Established in 1836, the organization has over 7 million customers in the UK utilizing services such as life assurance, pension, general insurance plans and investments as well as being responsible for investing over £400 billion worldwide on behalf of their investors.
Legal and General also offers a comprehensive Over 50 life insurance plan and provides two options from which policy seekers can choose:
Increasing Plan Over 50 Life Insurance from Legal and General
The Increasing Plan features guaranteed acceptance life insurance for individuals’ ages 50 to 80 years old who are permanent residents of the United Kingdom. Better yet, this plan can be purchased without Legal and General requiring a medical exam or health assessment which may come as a big relief for older policy seekers.
Premiums for this plan start as low as £8 a month depending on your age and features chosen. Finally, Legal and General offers a Funeral Benefit option that can contribute an additional £250 toward burial expenses and help further reduce the burden on loved ones.
The Increasing Plan offered by Legal and General is a great way to guarantee a cash sum payout for beneficiaries and help protect that money from inflation. The cash sum offered through this plan as well as premiums are reviewed each year in line with changes in the Retail Prices Index, or RPI.
This change is then multiplied by 1.5 and compared against the current cash sum amount and premium payments. Although this helps to ensure the proper amount of funds are available for beneficiaries, it may cause premium payments to increase overtime.
If the policyholder should pass away from natural causes within one year of purchasing the policy, Legal and General will refund the amount paid in premiums – this is a unique benefit from Legal and General as many insurance providers require two years of coverage.
If the policyholder were to pass away in an accident or after the policy’s first year, regardless of cause, the full cash sum would be paid out to beneficiaries. Another great benefit of Legal and General’s Decreasing Plan option is that premiums payments cease on the policyholder’s 90th birthday and coverage will continue until the end of their life.
Fixed Plan Over 50 Life Insurance Explained
The Fixed Plan offered by Legal and General works very similarly to the Increasing Plan. Acceptance is guaranteed for residents of the United Kingdom between the ages of 50 and 80, no medical exam or health assessment is required, plans begin as low as £8 a month, and a Funeral Benefit Option is available to help contribute to expensive funeral costs.
But, instead of the premium payments and cash sum payouts being reviewed annually and increased, payments are set when the policy is purchased and are guaranteed to never increase.
The Fixed Plan is a more affordable option than the Increasing Plan for those on a financial budget and since premium payments are fixed, it is easier to work into monthly expenses. It is important, however, to consider the amount of coverage desired and cash sum payout amount that may be needed – Fixed Plan payouts are often affected by inflation which can decrease the sum’s value.
Also, make sure to understand that although the payments will be the same throughout, a policy holder could end up paying more in premiums over the course of the policy than the actual payout offers when the policy is redeemed.
Just as with the Increasing Plan premium, payments will be returned should the policyholder pass away from natural causes within the first year. Should the policy holder pass away from an accident or after the first full year of the policy for any reason, the entire cash sum amount will be paid to beneficiaries to be used for any outstanding debts and even toward funeral costs.
Also, premium payments will still stop on the policy holder’s 90th birthday and coverage will continue until the end of their life.
Overview of Differences Between The Increasing Plan and Fixed Plan…
The coverage that is provided by Legal and General through their Over 50 Life Insurance plan is the same regardless of which plan option you choose. The main difference between these plan options is how premium payments and the cash sum value are handled.
The Increasing Plan option allows policy holders to guarantee the amount of money that will be available to their families whereas the value of a cash sum linked to a Fixed Plan may decrease over time based on inflation. Increasing Plan premiums may fluctuate throughout the term of the policy and Fixed Plan premiums remain the same.
Legal and General has a long history of providing comprehensive life insurance coverage for residents of the United Kingdom. Its Over 50 Life Insurance specifically caters to those UK residents between 50 and 80 and offers a wide range of benefits to fit their financial and insurance needs.
When choosing between the Increasing Plan and Fixed Plan, make sure to take a hard look at the coverage you desire as well as how much you can afford in monthly premium payments. Making the right choice when it comes to life insurance is a great way to gain peace of mind about your loved one’s financial future.