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Over 50s frequently asked questions.

Am I eligible for an Over 50s Life Insurance Plan?

If you are aged between 50 and 80 and a UK resident, and you reside in the UK for at least 183 days per year, you're guaranteed to be accepted for the Over 50s Life Insurance Plans.

Do I need a medical when I apply?

When you apply for our Over 50s Life Insurance Plans we won't ask you to have any medical assessments.

How many plans can I take out?

You can take out as many policies as you like as long as the total initial monthly premiums you pay do not exceed £50. This includes any existing Legal & General Over 50s plans you may have. However, you can only take out one Funeral Plan.

Can my partner take out cover as well?

Your partner can also apply for a plan providing they are aged 50 to 80 and a UK resident and reside in the UK for at least 183 days per calendar year. However, as the plans are set up individually, they cannot be held in joint names.

Can I change my mind?

After we have received your application, you have 30 days to change your mind. A Cancellation Notice will be sent once the plan has started confirming your right to cancel. If you decide to cancel your plan we will return any premiums paid. You can cancel your plan after the 30 day period by writing to us. However, as the plan has no cash-in value at any time you will not get any money back.

If you change your mind about the Funeral Benefit Option in the future you can remove it at any time without any additional cost. Once the charge has been removed your Over 50s Life Insurance Plan will continue as normal (without the Funeral Benefit Option). The extra 10% towards your funeral costs will no longer apply. If you decide that you don't want the Funeral Benefit Option please contact us and we will inform Dignity that the charge is to be removed.

What happens if I die within two years of the policy start date?

If you die within the first two years of your plan we will not pay the benefit but we will return all the premiums paid. If you do not place your plan benefits in Trust, then these premiums will be paid to your estate and may be subject to Inheritance Tax.

However, if you die within the first two years of the plan, as a result of an accident, then the full benefit will be paid. Exclusions and limitations will apply, please refer to the section titled 'What exactly does accidental death mean?' in the Policy Summary.

For the Funeral Benefit Option, if you die within the the first two years of your plan all the premiums will be returned and the Funeral Benefit Option will be automatically removed from your plan.

Will my premiums ever go up?

This depends on the type of Over 50s plan you choose.

With The Fixed Plan, premiums are guaranteed never to go up, and so this plan is ideal if you want the reassurance of a fixed premium.

The Funeral Plan and The Increasing Plan are both reviewed in line with inflation, which is measured by the Retail Prices Index (RPI). We’ll review your premiums and benefit each year and inform you in writing about any changes to your policy.

The premiums are reviewed and will increase by 1.5% for every 1% increase in your benefit. If RPI ever rises to over 10%, the maximum increase in benefit will be 10% and the maximum increase in premium will be 15%. The premium increases will continue until you reach the age of 90 or decline the annual review. Although you stop paying premiums on your 90th birthday, your cover continues to be reviewed for the rest of your life. You can choose not to accept the annual review. In this instance, your premium and benefit will remain fixed at the value at that time and will provide a contribution towards the cost of a funeral.

For the Funeral Plan, if cremation funeral prices rise beyond inflation in the future, then Dignity guarantees to cover the increased costs as long as you accept the annual review.

Why does the premium increase by more than the benefit on the Funeral Plan and the Increasing Plan?

As life insurance costs more as you get older, the rate of increase in premium is higher than that of the benefit.

What is the ‘annual review’?

If you have either a Funeral Plan or Increasing Plan then your plan will be subject to an ‘annual review’.This means that each year we’ll review your premiums and benefit to ensure they keep up with the cost of living.

You can choose to decline this review when we write to you each year. If you choose to decline the opportunity to increase the benefit and premium, you will not be able to restart the review of your plan. This means that inflation may reduce the benefit of your plan. The review will take place three months before the anniversary of your plan. Your plan and benefit will remain fixed at the value at that time.

The Fixed Plan is not subject to the ‘annual review’ process as the premium and benefit are fixed from the start of the plan.

Does the Funeral Plan cover the cost of a traditional burial?

The plan is designed to cover the costs of a traditional cremation funeral. However, we understand that everyone is different and if you prefer to have a burial then the plan will provide a contribution towards your burial funeral costs. Read more about The Funeral Plan and what's included.

How can I have a plan that covers the cost of my funeral and provides me with a lump sum to leave behind or use for other costs?

As long as the initial monthly premiums added together do not exceed £50 and this includes any existing Legal & General Over 50s plans you may have, then along with the Funeral Plan you can take out our Fixed Plan and Increasing Plans. These additional plans can then be used as a nest egg for your family or used to cover other costs.

Alternatively you can take out our Funeral Benefit Option which is designed to help pay towards your funeral costs. With the Funeral Benefit Option the cash sum from your Fixed or Increasing Plan is paid directly to an agreed Dignity Funeral Director rather than to your estate.

How will the benefit provided by the Funeral Plan keep up with increases in funeral costs?

The Funeral Plan is reviewed in line with inflation, which is measured by the Retail Prices Index (RPI). We will review your premiums and benefit each year and inform you in writing about any changes to your policy. If cremation funeral prices rise beyond inflation in the future, then Dignity guarantees to cover the increased costs as long as you accept this review. Your premiums will increase by 1.5% for every 1% increase in your benefit.

You can choose not to accept this review. In this instance, your premium and benefit will remain fixed at the value at that time and will provide a contribution towards the cost of a funeral. Learn more about what's included in The Funeral Plan.

Under the Funeral Plan and Funeral Benefit Option, who organises my funeral?

We use a company called Dignity to help organise your cremation funeral. Dignity is the UK's largest funeral plan provider, who since their launch in 1985 has planned the funeral arrangements for more than 365,000 people in the UK. They’re also the founding members of the Funeral Planning Authority, the official body that oversees the operation of companies offering funeral plans.

How will my loved ones find the nearest Dignity Funeral Director?

When the time comes, your executor just needs to make one phone call to Dignity, and they will appoint an approved Dignity Funeral Director. They own over 550 funeral directors nationwide. To contact Dignity, please call 0800 151 3789, they are available 24 hours a day. Calls may be recorded and monitored.

Can I have special requests for my funeral if I take out the Funeral Plan?

Yes, you can have special requests for your funeral, such as a choice of hymns, music or readings. When arranging these special requests, if there are additional requirements not covered by the Funeral Plan you may need to consider taking out one of our other Over 50s plans, so your family don't have to bear the costs.

Do I have to use Dignity to organise my funeral if I take out a Funeral Plan?

No. If you decide at any time that you no longer want your funeral to be provided by Dignity through their network of funeral directors, you can write to let us know. The Funeral Plan will no longer pay the benefit to Dignity to provide a funeral and the plan value will be paid out to your estate when you die and be taken into account for Inheritance Tax purposes, unless you have placed your policy into Trust. If you decide to remove the legal charge from Dignity, you'll need to consider alternative funeral arrangements.

What needs to be done when making a claim?

When the time comes, a claim can be made in writing or over the telephone for the Fixed and Increasing plans. If you have a Funeral Plan your representative simply needs to make a call to Dignity, our chosen funeral plan provider, to set your plans in motion. Read more about our claims process.

Can I cash in my plan?

As the plan has no cash in value, you will get nothing back if you decide to cash in the plan after the first thirty days of applying.

What is the Funeral Benefit Option?

Our Funeral Benefit Option is designed to help pay towards your funeral costs. With this option, the cash sum from your Over 50s Life Insurance Plan is paid directly to an agreed Dignity Funeral Director, rather than to your estate. When the time comes, your family simply make one phone call to Dignity to set the plan in motion saving them the worry of finding a funeral director. Also, the Funeral Benefit Option will provide an extra 10% on top of the cash sum amount when your plan is used to pay for your funeral costs with a Dignity Funeral Director.

How does the Funeral Plan differ to the Funeral Benefit Option?

The Funeral Plan guarantees to provide the funeral services covered by the plan, providing all premiums and benefit increases are accepted at each annual review.

The Funeral Benefit Option does not guarantee any funeral services, its a process for 'charging' the proceeds from your Over 50s Fixed or Increasing Life Insurance Plan to Dignity, so that the cash sum can be used towards the cost of the funeral.

Under the Funeral Benefit Option, how is the 10% cash sum calculated and what is the maximum amount of cover I can receive?

By charging your plan to Dignity you will receive an extra 10% for every £100 of your cash sum that is used towards funeral costs, with a Dignity Funeral Director. You will receive an additional £10 towards your funeral costs (up to maximum of £1000) and at no extra cost to you.

Under the Funeral Plan or the Funeral Benefit Option, what does the term 'Charge' mean?

'Charge' is the legal term used to describe the process that allows your cash sum to be paid to Dignity to be used towards your funeral costs.

With the Funeral Benefit Option, what happens if the cost of a funeral is greater than the cash sum from the plan?

If the cost of the funeral is greater than the cash sum from your plan, then your estate or next of kin will need to pay the difference. If however the cash sum is greater than the cost of the funeral, than the difference will be paid to your estate by Legal & General and may be subject to Inheritance Tax.

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The Fixed Plan

Gives you the certainty of fixed monthly premiums, allowing you to budget with confidence.

The Increasing Plan

If rising costs are a concern, our Increasing Plan aims to offer a benefit that keeps up with inflation.

The Funeral Plan

Our Funeral Plan aims to ensure that the costs of a traditional cremation funeral are covered.

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