At Scottish Friendly, we understand the importance of making sure your loved ones are taken care of financially should the worst happen. If you’re concerned about how you’ll protect your family financially after you die, it may be worthwhile looking into some sort of life cover policy. Taking out life insurance could help towards funeral costs or providing money towards children’s education or university fees, housing or any other financial burdens. It may also deliver valuable peace of mind that your loved ones will have some financial comfort after you’re gone.

If you’re looking at life cover products, you may have heard of Over 50s policies: life assurance designed specifically for the Over 50s. Scottish Friendly’s Over 50s life cover delivers a simple, affordable plan, which pays your family a fixed lump sum in the event of your death. Our policy aims to bring you reassurance for the future, while letting you enjoy the present.

As the population grows older, Over 50s life insurance is becoming more and more popular and it’s important to understand the finer details of your plan to make sure you get the most out of it:

Over 50s life cover: at a glance

• When you die, your family will receive a fixed cash lump sum which can be used for funeral expenses or other costs.

• After two years, a fixed guaranteed cash lump sum is payable on death, provided you keep up your premiums.
• Premiums are guaranteed not to rise. The payments you make over the duration of the policy will never change – you’ll know exactly how much you’ll owe every month.
• Premiums cease at age 85 but your life cover still continues.
• To apply you need to be a UK resident aged between 50 and 75.

• Guaranteed acceptance no matter what your state of health is. One of the benefits of opting for an Over 50s policy is that everyone over 50 years of age is eligible. No medical examinations are necessary and no medical questions will be asked – as long as you’re under 75, you’re guaranteed acceptance.

• At age 85, your premiums cease, but you’ll continue to be fully protected by the plan until you die.
• Scottish Friendly also offers the option of using your plan to contribute towards funeral expenses.

Over 50s life cover: what you need to consider

• Your lump sum is fixed so inflation will reduce what can be bought with this.
• The plan will only pay out the lump sum after two years’ payments have been made. If you die before then, only a return of premiums will be paid.
• If you stop paying into the plan before 85, your life cover will stop. No cash in value will be paid.
• As the lump sum is paid to your estate, there could be an inheritance tax charge (if your estate is large enough).
• Tax treatment depends on your individual circumstances and tax law may change in the future.

• Depending on how long you live, it’s possible you could pay more into the policy than is eventually paid out – and, since the lump sum payment is fixed, inflation will reduce its value over time.

• If you die from natural causes within the first 2 years of your plan, your premiums will be refunded. If you die from an accident, within that term, your policy will pay out in full.

Over 50s life plans involve a variety of premiums. The value of your lump sum depends on how much you pay monthly and your premiums will vary depending on other factors, including gender and smoker status.

Take the time to look into the life cover plan you’re considering, not all plans are suitable for everyone and it’s important to make the right choice for you and your family. This way you don’t have to worry about the future – and instead spend time enjoying the present.

Jill Mackay, Scottish Friendly

Scottish Friendly has provided no advice in relation to these plans. If you are in any doubt as to whether a plan is suitable for you, you should contact a financial advisor for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk Advisers may charge for providing such advice and should confirm any cost beforehand.