In my post pile today I received a very nice, glossy brochure from Engage Assurance based in Yorkshire.
Guaranteed 50 Plus Life Cover
Engage’s life cover seems to have some really good ‘reasons to buy’:
- No underwriting required
- Guaranteed acceptance
- Pre-existing health conditions included
- Up to £40,000 of life cover
- Available to all UK residents aged 50 – 80 years old (young?)
- £250 contribution to funeral service costs
The first salient point is when is life cover not really life cover? The answer: when you die from natural causes within 2 years.
Using Engage as an example, if a policyholder dies from natural causes, you wouldn’t receive the sum you’ve insured yourself for. In actual fact, you might only receive up to 150% of the premiums you’ve paid. So, based on a premium of £25 per month, you (or rather, your estate) might only get £25 x number of months x 1.50
Whereas, if you die from accidental causes, you’ll be fine. In fact, you could receive 3x the sum assured! After 2 years, the sum you’ve insured yourself for is then payable on a successful claim, whether death is from natural or accidental causes. You can find out more details from Engage’s own documentation.
This type of plan is potentially useful for people who are unable to obtain ‘normal’ life insurance, perhaps due to a poor medical history. There are a number of other providers of this type of cover, including the Post Office, Axa, L&G and LV.
None of the information contained within this website, or the form in which it is presented is intended to be, or should be, taken as a recommendation, either implied or expressed, to make any particular financial decision.
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