Over 50s Life insurance nc products How do they compare?

Transcription

1 Over s Life insurance nc products How do they compare? Written & published by redtag Ltd ebruary 2015 Whitepaper - Over s Life Insurance Report.indd 1 19/02/ :23

2 Contents 01. Introduction 02. Who we reviewed 03. So what s happening? 07. The detail redtag Limited All rights reserved. Information in this report is the latest available at the time of research, October vember Unless permission is agreed in writing in advance by redtag Limited, this document may not be referenced, repurposed or sold. Whitepaper - Over s Life Insurance Report.indd 2 19/02/ :23

3 Introduction As part of their Whole of Life Insurance report, Mintel recently highlighted the fact that the majority of Over s have no life cover. In fact 51% are without any protection*. Apart from reasons of apathy, that plagues the life insurance industry, and the impact of the economic slowdown hitting this consumer group harder than others squeezing the life out of their household finances, it is also partly due to a slowdown from the supply side - withdrawal of banks and some building societies from offering cover to this sector, and a reduction in advertising spend of 25%*. However it is predicted that this market will return to growth over the coming years, mainly driven by an increasing need of an aging population, the increasing costs of funerals leading to this demographic wanting and needing to make provision to help their dependants and more new entrants entering the fray. With over 20 providers of whole of life Over s life insurance in the market, there is fierce competition. So how do their offerings differ? Is everyone following the herd, or are there specific features that create competitive advantage? This report presents a breakdown of 20 providers offering fixed premium Over s life insurance. Through provider website research, we ve looked at everything from eligibility, and funeral benefit option, through to which free gift is on offer. *Source: Mintel, Whole of Life, UK, July Whitepaper - Over s Life Insurance Report.indd 3 19/02/ :23

4 Who we reviewed 02 Whitepaper - Over s Life Insurance Report.indd 4 19/02/ :23

5 So what s happening? The following is a quick snapshot of how providers product offerings differ - keep on reading to see the full report detail. Dignity, provide a uneral Benefit Option incentive to the likes of LV= and SunLife Direct. Instead of the commonly provided 2 towards your funeral costs, Dignity will pay 10% more towards the funeral or, reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. Sun Life Direct, the market leader, are the only provider to offer cover from 4 per month % of providers offer a 1 year moratorium period 03 Whitepaper - Over s Life Insurance Report.indd 5 19/02/ :23

6 Royal London allow customers to reduce their monthly premium during their policy term providing they still pay the minimum 5 premium. All providers offer single life cover, however British Seniors also offer a family policy to cover your partner and financially dependent children. Royal London are the only provider to protect a payout if a customer can no longer afford to pay their premiums. As long as a customer s policy has been going for at least half the premium payment term, Royal London will pay out at least half of the cash sum on death. 04 Whitepaper - Over s Life Insurance Report.indd 6 19/02/ :23

7 M&S vouchers are still the most popular incentive to give with % of providers offering them. The value can differ with L&G and SunLife Direct providing the highest value at, and the average being around 45. There are now 3 supermarkets offering Over s Life Insurance The ASDA product, provided by LV= is the only provider to offer the option of capped premiums. This means, as soon as the premiums you have paid in are the same value as your cover, you no longer have to pay any more premiums but your cover will continue for life Whitepaper - Over s Life Insurance Report.indd 7 19/02/ :23

8 % of uneral Benefit Option services are provided by Dignity. The minimum application age for all providers is, with the majority of providers having a cut-off application age of 80. However, SunLife Direct have an extended application age of up to 85. Increasingly providers are offering value added bereavement and counselling services. Engage have the most rounded product offering with: Legal advice provided by Co-operative Legal Services. Care advice from Grace Consulting Engage Health Support Service (provided by RED ARC) help with terminal illness. 06 Whitepaper - Over s Life Insurance Report.indd 8 19/02/ :23

9 About the product A general overview of the top level key product features Product Product Name Acceptance Criteria lexibility to add new cover Increasing cover (as an option or automatic) Protected Payout or Joint cover AA Legal & General Over s Life insurance Guaranteed for to 80 and reside in the UK for at least 183 days a year t in existing plan but option to take out an additional plan ixed or increasing Life (automatic) Insurance or Insured uneral Plan (increasing) options - If you stop paying premiums before the end of your policy, your cover will end 30 days after your missed premium and you won t get anything back. This is not a savings or investment product and has no cash value until a valid claim is made Asda inancial Services Limited (capped payout option) LV= Asda Over s Life Cover Guaranteed for to 80 yr old (permanent) UK residents t in existing plan but option to take out an additional plan - There s no cash-in value with this plan. So if you cancel your plan you won t get back any of your premiums and any beneficiaries won t get a cash lump sum when you die Asda inancial Services Limited LV= Asda Over s Life Cover Guaranteed for to 80 t in existing plan but option to take out an additional plan - There s no cash-in value with this plan. So if you cancel your plan you won t get back any of your premiums and any beneficiaries won t get a cash lump sum when you die Aviva Aviva Guaranteed Lifelong Protection Guaranteed for to 80 t in existing plan but option to take out an additional plan - The plan has no cash in value at any time. If you stop paying the premiums when due, you won t get any benefits for the amount you ve already paid British Seniors Insurance Agency Scottish riendly Life Assurance Society Limited Guaranteed Over s Life Insurance Guaranteed for to 79 yr old (inclusive) UK residents t in existing plan but option to take out an additional plan Automatic with age based - the policy has no cash-in value at any time. If two consecutive premium payments are missed when due, your policy will end with no value and cover under this policy will no longer be provided or joint (including amily option for dependant children under 21) Club Together (trading name of Paymaster) Legal & General Over s Life Insurance Plans Guaranteed for to 80 for at least 183 days a year t in existing plan but option to take out an additional plan Yes - Increasing or fixed option - If you stop paying your premiums at any time, your cover will end 30 days after the first missed premium, and they won t give you any money back. This is not a savings or investment product, and has no cash-in value unless a valid claim is made Engage Mutual Assurance Engage Mutual Assurance (Homeowners riendly Society Limited, HSL) Over s Life Insurance Guaranteed for to 80 Yes. You can increase your level of cover by taking out additional plans. You can pay up to in total premiums (subject to a total level of cover of 40,000) on plans taken out after 1 January Plans taken out before this date do not count towards these limits - If you stop paying your premiums for any reason, your policy and all cover will cease, and you will not get any money back oresters riendly Society oresters riendly Society + Life Cover (With Profits) Guaranteed for to 80 t in existing plan but option to take out an additional plan If you stop paying your premiums within the first two years, your life cover will stop and you won t get any of your money back Great Deal LV= Great Deal Over s Life Insurance Guaranteed for to t in existing plan but option to take out an additional plan - If you cancel your plan after 30 days of it starting, you won't get anything back. Your plan has no cashin value at any time Legal & General Legal & General Over s Life Insurance Plans Guaranteed for to 80 and reside in the UK for at least 183 days a year t in existing plan but option to take out an additional plan Yes - ixed plan or increasing - If you stop paying your premiums at any time, your cover will end 30 days after the first missed premium, and they won t give you any money back. This is not a savings or investment product, and has no cash-in value unless a valid claim is made LV= LV= Plus Plan Guaranteed for to 80 yr old (permanent) UK residents t in existing plan but option to take out an additional plan - If you cancel your plan after 30 days of it starting, your cover will end and you won t get anything back. Your plan has no cash-in value at any time 07 Whitepaper - Over s Life Insurance Report.indd 9 19/02/ :23

10 About the product A general overview about the top level key product features Product Product Name Acceptance Criteria lexibility to add new cover Increasing cover (as an option or automatic) Protected Payout or Joint cover Post Office Money Aviva Life & Pensions UK Ltd Over s Life Cover Guaranteed for to 80 - The plan has no cash-in value at any time. If you stop paying regular premiums before end of the premium term, your plan and cover will end 30 days after the date the last premium was due and you won t get anything back RIAS Ageas Protect Limited Over s Life Plan Guaranteed for to Yes - Automatic with increasing option - The plan only pays out a cash amount upon your death, so you cannot cash it in at any time. If you stop paying your premiums, your cover will stop and you will not get any money back Royal London Royal London Over s Life Cover Guaranteed for to t in existing plan but option to take out an additional plan from 1 per month Yes - Even if you find you have to stop paying premiums, provided your policy has been going for at least half the premium payment term, they will pay out at least half of the cash sum on death SAGA The Prudential Assurance Company Ltd t/a PruProtect Saga Guaranteed Life Insurance Guaranteed for to 80 t in existing plan but option to take out an additional plan - This policy does not have a cash-in value. This means that if you cancel your policy or stop paying your premiums before your policy anniversary on or after your 90th birthday, you will get nothing back and no guaranteed cash lump sum will be payable on your death Sainsbury s Bank Legal & General Over s Life Insurance Plans Guaranteed for to 80 and reside in the UK for at least 183 days a year t in existing plan but option to take out an additional plan Yes - Automatic with increasing option - This is not a savings or investment product and has no cash in value unless a valid claim is made. If you stop paying premiums before the end of your policy, your cover will end 30 days after your missed premium and you won t get anything back Shepherds riendly The Shepherds riendly Society Ltd Shepherds Over s Life Plan Guaranteed for to t in existing plan but option to take out an additional plan - 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 Standard Life Direct LV= Plus Plan Guaranteed for to 80 yr old (permanent) UK residents t in existing plan but option to take out an additional plan - ixed premiums will never increase - If you cancel your plan after 30 days of it starting, your cover will end and you won t get anything back. Your plan has no cash in value at any time SunLife AXA Wealth Ltd t/a SunLife Guaranteed Over Plan Guaranteed for to 85 t in existing plan but option to take out an additional plan - fixed premiums will never increase - The plan has no cash in value at any time. If you stop paying your premiums when due for any reason, your plan would end and you would not get any money back Tesco Bank Aviva Life & Pensions UK Ltd Over s Life Assurance Guaranteed for to 80 t in existing plan but option to take out an additional plan - If you don t pay your premiums during the premium term, your policy and your cover will end 30 days after your last payment was due and you won t get any money back Zurich Zurich Assurance Limited Zurich Simple Over s Life Insurance Guaranteed for to 80 (you live in the UK for at least 6 months of the year) t in existing plan but option to take out an additional plan - If you don t make a payment when it is due, the plan will continue to provide the life insurance cash sum for 30 days. 08 Whitepaper - Over s Life Insurance Report.indd 10 19/02/ :23

11 Paying for cover A summary of plan payment terms for each provider Minimum Premium per month Maximum Premium per month Maximum Cover Maximum Payment Term lexibility to reduce premiums? Option to stop paying premiums at crossover? AA (Legal & General) across all plans t specified Premiums cease at 90th birthday Can revert flexible plan to fixed plan (remains at that fixed value at the time of reverting) Asda inancial Services Limited (capped payment option) across all plans 10,000 single plan, 25,000 across all plans with LV= Term varies dependent on sum assured chosen Yes Asda inancial Services Limited across all plans 10,000 single plan, 25,000 across all plans with LV= 30 years Aviva , or across all plans t specified Premiums cease at 90th birthday or after 30 years, whichever comes first British Seniors Insurance Agency (Scothish riendly) n/a n/a Maximum sum assured 15,000 for -54 yrs, 10,000 for -79 yrs. Minimum is 2,000. Premiums cease at 90th birthday (eldest life insured) Yes - Can opt out of a premium increase in any year, returning to increase later Club Together (trading name of Paymaster) (Legal & General) ,000 Premiums cease at 90th birthday Can revert flexible plan to fixed plan (remains at that fixed value at the time of reverting) Engage Mutual Assurance ,901 Premiums cease at 90th birthday oresters riendly Society ,286 Premiums cease at 90th birthday Great Deal , or across all plans 25,000 Plan anniversary after 90th birthday Legal & General Approx 20,000 - based on age Premiums cease at 90th birthday Can revert flexible plan to fixed plan (remains at that fixed value at the time of reverting) LV= online, by phone 25,000 Plan anniversary after 90th birthday Post Office Money (Aviva) , or across all plans Up to 21,082 Stop paying at 90th birthday or after 30 years, whichever comes first 09 Whitepaper - Over s Life Insurance Report.indd 11 19/02/ :23

12 Paying for cover A summary of plan payment terms for each provider Minimum Premium per month Maximum Premium per month Maximum Cover Maximum Payment Term lexibility to reduce premiums? Option to stop paying premiums at crossover? RIAS (Ageas) 5.00 ( if 71yrs or over).00 t specified Premiums cease at 90th birthday Can revert flexible plan to fixed plan permanently after refusing increase for 3 consecutive years. Royal London ,000 Premiums cease at 90th birthday or after 30 years, whichever comes first Yes - Must continue to pay min 5 pm SAGA (PruProtect) across all plans t specified Stop paying at 90th birthday Sainsbury s Bank (Legal & General) across all plans t specified Premiums cease at 90th birthday Can revert flexible plan to fixed plan (remains at that fixed value at the time of reverting) Shepherds riendly across all plans t specified Premiums cease at 90th birthday Standard Life Direct 7.00 online, 100 in Policy Summary 25,000 Plan anniversary after 90th birthday SunLife or across all plans 25,000 or life Tesco Bank (Aviva) across all plans t provided Premiums cease at 90th birthday or after 30 years, whichever comes first. Zurich ,000 Age 90 or after 30 years (whichever occurs first) 10 Whitepaper - Over s Life Insurance Report.indd 12 19/02/ :23

13 Moratorium comparison Comparing moratorium terms for each plan Moratorium Period Death benefit during moratorium Accidental death benefit during moratorium Accidental death benefit after moratorium AA (Legal & General) Asda inancial Services Limited (capped payment option) 1 year Return premiums paid ull benefit, minimum 1000 ull sum assured 1 year Return premiums paid ull sum assured ull sum assured Asda inancial Services Limited 1 year Return premiums paid ull sum assured ull sum assured Aviva 1 year Return premiums paid ull sum assured 2 x sum assured British Seniors Insurance Agency (Scothish riendly) Club Together (trading name of Paymaster) (Legal & General) 1 year ne ull sum assured 3 x sum assured 1 year Return premiums paid ull sum assured ull sum assured Engage Mutual Assurance 2 years 1% of premiums paid 3 x sum assured subject to max amount Level of cover chosen less any serious illness benefit already paid oresters riendly Society 2 years Return any premiums paid plus bonuses to date ull sum assured plus bonuses to date ull sum assured Great Deal 2 years Return premiums paid ull sum assured ull sum assured Legal & General 1 year Return premiums paid ull sum assured ull sum assured LV= 1 year Return premiums paid ull sum assured ull sum assured Post Office Money (Aviva) RIAS (Ageas) 1 year Return premiums paid ull sum assured 2 x sum assured 2 years 1.5 x premiums paid 3 x sum assured ull sum assured Royal London 1 year 1.5 x premiums already paid ull sum assured ull sum assured SAGA (PruProtect) Sainsbury s Bank (Legal & General) 1 year Return premiums paid ull sum assured ull sum assured 1 year Return premiums paid ull sum assured ull sum assured Shepherds riendly 2 years 1.5 x premiums paid ull sum assured ull sum assured Standard Life Direct 1 year Return premiums paid ull sum assured ull sum assured SunLife 2 years 1.5 x premiums paid ull sum assured ull sum assured Tesco Bank (Aviva) 1 year Return premiums paid ull sum assured 2 x sum assured Zurich 1 year Return premiums paid ull sum assured ull sum assured 11 Whitepaper - Over s Life Insurance Report.indd 13 19/02/ :23

14 Additional offerings Who offers additional extras to the core products, and what are they? BO Option BO BO Amount Terminal Illness included? Bereavement Counselling offered? Other value added services? Conversion incentive (by digital channel) AA (Legal & General) Yes Dignity AA Legal Helpline Up to M&S vouchers as a thank you gift. Valid until 31 December M&S vouchers if cover for the same monthly premium or lower with another provider is found. Asda inancial Services Limited (capped payment option) Asda inancial Services Limited Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) 30 Asda gift card following receipt of 3rd monthly premium 30 Asda gift card following receipt of 3rd monthly premium Aviva M&S vouchers welcome gift following receipt of 4th monthly premium British Seniors Insurance Agency (Scothish riendly) Accidental Serious Injury option (blindness/deafness/ loss of 2 limbs) - pays 3 x benefit amount up to 45,000, for ages -69 at start date and are a UK resident, up to age 74 ree Legal Will Kit and 40 M&S Gift Card if policy taken out before 30 vember Club Together (trading name of Paymaster) (Legal & General) Yes Dignity 2.00 M&S vouchers welcome gift for members Engage Mutual Assurance Yes The Co-operative uneralcare 2.00 Claim 100% of the sum assured early if you become terminally ill (after 2 years). This will close the policy so there will be no payout on death Yes - through Co-operative Legal Services Claim 20% of your total sum assured if you become seriously ill (after 2 years). This will reduce the payment on terminal illness on death. Legal advice provided by Co-operative Legal Services. Care advice from Grace Consulting. Engage Health Support Service (provided by RED ARC) help with terminal illness 30 M&S vouchers, a DAB digital radio or cashback scheme of three months premiums back after 6 months premiums paid. oresters riendly Society Discounted Will writing, GP consultation service, personal nurse adviser, social and community events, financial grants for education and healthcare 30 M&S vouchers welcome gift Great Deal Legal & General Yes Dignity 2.00 Yes Dignity 2.00 M&S vouchers welcome gift - apply by end of LV= Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) Welcome gift of 30 M&S Gift Card, Red Letter Experience Days or 30 Argos/Homebase Gift Card 12 Whitepaper - Over s Life Insurance Report.indd 14 19/02/ :23

15 Additional offerings Who offers additional extras to the core products, and what are they? BO Option BO BO Amount Terminal Illness included? Bereavement Counselling offered? Other value added services? Conversion incentive (by digital channel) LV= Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) Welcome gift of 30 M&S Gift Card, Red Letter Experience Days or 30 Argos/Homebase Gift Card Post Office Money (Aviva) Yes The Co-operative funeralcare 2.00 Reliance Mutual RIAS (Agea) Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) Access to Best Doctors medical advice M&S vouchers following 3rd monthly payment Royal London Yes Dignity SAGA (PruProtect) Yes Golden Charter 2.00 Yes Access to a personal nurse adviser 40 M&S vouchers following receipt of 3rd monthly payment. Sainsbury s Bank to spend instore - 12 x 5 coupons, one to spend each month for a year Shepherds riendly Yes Golden Charter 2.00 Love2Shop gift card up to 30 Standard Life Direct Yes Dignity Dignity would pay 10% more towards the funeral or reduce your funeral cost by 10% depending on whether the sum assured is more or less than the cost of the funeral. The difference will be paid to your estate (max 1000) SunLife Yes Golden Charter % cash sum increase for applicants before 30/11/14. irst month premium free. Welcome gift of choice of pocket camcorder, 20 LED TV with reeview, 7 tablet, Amazon voucher, Argos gift card or Marks & Spencer vouchers Tesco Bank (Aviva) Yes The Co-operative uneralcare 2.00 ree 40 Tesco Gift Card for Clubcard customers Zurich Yes 13 Whitepaper - Over s Life Insurance Report.indd 15 19/02/ :23

16 How much cover costs The detail for all the quotes conducted, based on fixed criteria Age Attained ixed () or Increasing (I) Sum Assured 10 Sum Assured 20 Sum Assured 30 AA (Legal & General) Smoker? Need to know but doesn t impact rate & I & I & I & I & I & I 3, , , , , , , , , , ,8.00 2, , , , , , , Asda inancial Services Limited Smoker rates 2, ,8.00 1, , ,4.00 3, ,8.00 2, , , , , , , , , n-smoker rates 3, ,3.00 2, , , , ,6.00 4, ,6.00 2,8.00 1, , , , , , Aviva 3, , , , , , , , , ,1.00 1, , , , , , , British Seniors Insurance Agency (Scothish riendly) ixed, single ixed, single ixed, single ixed, single ixed, single ixed, single , , , , , Club Together (trading name of Paymaster) (Legal & General) Smoker? Need to know but doesn t impact rate & I & I & I & I & I & I 3, , , , , , , , , , , , , , , , , , Whitepaper - Over s Life Insurance Report.indd 16 19/02/ :23

17 How much cover costs The detail for all the quotes conducted, based on fixed criteria Age Attained ixed () or Increasing (I) Sum Assured 10 Sum Assured 20 Sum Assured 30 Engage Mutual Assurance Smoker rates 2, , , , , , , , ,1.00 1, , , , , , , n-smoker rates 4, , , ,0.00 1, ,6.00 7, , , , , , , , , , , oresters riendly Society 2, , , , , , , ,8.00 2, , , , , , , , Great Deal 3, , , , , * max age 8, , ,0.00 3, , * max age 12, , , ,3.00 4, * max age Legal & General Smoker? Need to know but doesn t impact rate & I & I & I & I & I & I 3, , , , , , , , , , ,8.00 2, , , , , , , LV= 3, , , , , , ,6.00 4, , ,6.00 1, , , , , , , * Only available up to age Whitepaper - Over s Life Insurance Report.indd 17 19/02/ :23

18 How much cover costs The detail for all the quotes conducted, based on fixed criteria Age Attained ixed () or Increasing (I) Sum Assured 10 Sum Assured 20 Sum Assured 30 Post Office Money (Aviva) 3, , , ,0.00 1, , , ,6.00 3, , , , , , , , , RIAS (Ageas) & I & I & I & I & I & I 3,5.00 2, , , , (aged 74) 7, , , ,8.00 2, , (aged 74) 12, , , , , , (aged 74) Royal London 3, , , , , , , , ,4.00 3, , , , , , ,7.00 4, , SAGA (PruProtect) Smoker rates 1, , , , , ,3.00 1, , , , ,6.00 2, , , n-smoker rates 3, , , , , , , , , ,6.00 1, , , , , , , Sainsbury s Bank (Legal & General) Smoker? Need to know but doesn t impact rate & I & I & I & I & I & I 3, , , , , , , , , , ,8.00 2, , , , , , , Whitepaper - Over s Life Insurance Report.indd 18 19/02/ :23

19 How much cover costs The detail for all the quotes conducted, based on fixed criteria Age Attained ixed () or Increasing (I) Sum Assured 10 Sum Assured 20 Sum Assured 30 Shepherds riendly Smoker rates 2, ,8.00 1, , , , , , , , ,7.00 3, , n-smoker rates 3, , , ,6.00 1, , , , , , , , , , , , , Standard Life Direct 3, , , , , , ,6.00 4, , ,6.00 1, , , , , , , SunLife (includes additional 10% special offer) 3, , , , , , ,0.00 4, ,6.00 2, , ,9.00 8,7.00 6,7.00 5, , , Tesco Bank (Aviva) 3, , , , , , ,7.00 4, , ,2.00 1, , , , , , , Zurich 3,0.00 3, , ,0.00 1, , ,3.00 4,9.00 3,8.00 2, , ,3.00 9, , ,0.00 4,5.00 3, Capped Payment Option ASDA are the only provider to offer a capped payment option this means a customer can choose to cap premiums at a certain amount each month paying an agreed sum assured. Once the sum assured is reached, the customer no longer needs to pay monthly premiums. Asda inancial Services Limited (capped payment option) Smoker rates , , , , , , , , , n-smoker rates , , , , , , , ,8.00 4, , , , Whitepaper - Over s Life Insurance Report.indd 19 19/02/ :23

20 If you d like to tap into our Over s knowledge, Paul Handford phandford@redtagdm.co.uk or give him a call on Elliott House, Elliott Road, Cirencester. GL7 1YS T +44 (0) visit us follow 05 Whitepaper - Over s Life Insurance Report.indd 20 19/02/ :23