In addition to providing Simple, Fair and affordable Life and Critical Illness insurance and protection for those individuals with pre-existing medical conditions Assura Protect could be a better fit Over 50’s protection option for many.
While maintaining the (very) important guaranteed acceptance feature and the benefit of not requiring any medical or GP reports Assura Protect can provide the best of both worlds … simplicity with meaningful levels of coverage.
Below is Assura Insights’ – “Fit for Purpose” – An Over view of Over 50’s Life Cover which reviews:
- changes in socio-economic trends,
- gaps in current protection models,
- and different coverage / cost options available
and how Assura Protect Term Life could be a “better fit” alternative to the more widely sold Whole of Life over 50’s protection products.
Plain text version
Fit for Purpose. A comprehensive alternative to traditional Over 50’s Life Cover.
With lapse rates now close to 1 out of every 3 Over 50’s whole of life policies sold – the data suggests that many Over 50’s policies are missing the mark and not providing the designed long term protection for policy holders.
A Simple, Fair and Affordable term life policy from Assura Protect could be a better protection option for many.
Since the 1980’s average lifetime personal financial risk levels have been both elevated and extended by the following;
- Extended child dependency
- Prolonged employment / delayed retirement.
- Increases in second+ careers.
- Later stage divorce
- Increase in second home purchases
But even with simplicity Over 50’s Policies do have key risks
- Potential for total premiums paid to exceed benefits payment.
- Low cover / sum assured amounts to premium. £30 a month premium for a 50-year-old man provides on average a death benefit of £10,500 if premiums continued to be paid.
- Restricted initial cover. Full cover is often eligible until after 12 – 24 months after purchase.
- Cover not available prior to age 50.
So, the question remains … Do Over 50’s whole of life policies provide the long-term benefits for policy holders?
The data is unsupportive…
- Close to 30% of all Over 50’s policies lapse prior to any benefit being paid – 60% of those occur within the first 24 months after initial purchase.
- The average holding period of an over 50’s plan is approximately 8 years.
- According LIMRA Whole of Life Policies have a long-term average lapse rate of 4% per year which means after year 18 only 49.9% of policies are still in force.
But the real question is why? Assura believes there are three primary reasons for this …
- Long Term Affordability. Many industry experts point to the fact that people on fixed incomes, later in life, can no longer afford the whole of life premiums especially when policies cannot be restructured to account for changes in financial circumstances.
- Inadequate Cover. For example: Will the average Over 50’s policy death benefit of under £6,000 be sufficient to cover outstanding liabilities and/or materially provide for a family who has lost a primary income earner? For most UK households – probably not.
- Value for money. The combination of the Over 50’s product risks and limitations plus the expense of monthly premium payments once personal financial risk has abated might not offer policyholder(s) the initial proposed value for money.
The Assura Protect Alternative
Use Assura Protect Term Life “vertical” cover as a more cost effective and comprehensive alternative to traditional Over 50’s Life Cover whole of life “horizontal” cover.
About Assura Protect & Contact
Since 2007 Assura has been providing life solutions to UK families and businesses. The firm has progressively grown into a specialist player providing insurance cover to thousands of clients annually.
86 Gloucester Place
London, United Kingdom
+44 207 224 0524
FCA Reference Number: 678817
Please consult www.assuraprotect.com for full terms and conditions.
All information and data contained has been obtained from both publicly and privately available sources deemed to be reliable and used for informational purposes only. Information was checked and verified as to its accuracy at time of publication but might change over time.
Assura Protect is a registered trademark of CJTD Investments Limited, an appointed representative of HWIFS Ltd. which is authorized and regulated by the FCA.
|Cover||Assura Protect Life||Leading Over 50’s Plan|
|Life Cover for 50 Yr old male /Non-smoker paying £30 a month||£ 50,000||£ 11,700|
|Full cover / benefits start||Day 1||After 2 years|
|Guaranteed Acceptance with
No Medical Exam
|Critical Illness Cover (CIC) Available||Yes – Up to £25,000 with
optional CIC Policy.
|Yes – £2,934 or 20% of life
|CIC Cover||Core 8 – Cancer, Heart Attack, Bacterial Meningitis, Multiple Sclerosis, Stroke, Organ transplant, Coronary By-pass.||Comprehensive|
|Pre-existing Conditions Covered?||Yes – Once policy holder is symptom and treatment free for a period of 2 years.||Yes|
|Child Cover Available||Yes||No|
|Policy Type||Term Life||Whole of Life|
|Guaranteed Acceptance Period||Ages 18 to 61 and renewable to age 69||Ages 50 to 80