LV Over 50 Life Insurance Review – The LV 50 Plus Plan


Apr 25, 2014
LV Over 50 Life Insurance Review – The LV 50 Plus Plan

Having written a series of reviews for prepaid funeral plans, I thought I should turn my attention to Over 50 life insurance to complete the options available to you when it comes to choosing what has commonly become known as funeral insurance.

A popular form of whole of life insurance for the over 50s, these plans are widely available with numerous options to choose from, so deciding on the right plan that suits your own personal needs can prove challenging.

To help wade through the barrage of information, my series of over 50 life insurance reviews aims to shine a light on the leading providers; pointing out the things you should be aware of before making any decisions.

In my first review I take a closer look at LV; a major provider of insurance, investment and retirement products.  

Who are LV?

LV began life in 1843 as the Liverpool Independent Legal and Victoria Burial Society; its purpose being to provide people with a way to save for their funeral costs so they wouldn’t burden their families. (It’s interesting don’t you think that people embraced the need to put plans in place back in the 19th century when so many are reluctant to even think about what will happen when they are no longer around today!).

 

As a mutual, LV is owned by its 1.1 million members and has over 5 million customers. Anyone who has either a life insurance, protection, investment or retirement policy with LV automatically becomes a member and are therefore entitled to a range of member benefits.

How does the LV 50 Plus Plan work?
LV over 50 life insurance is a simple whole of life insurance plan that pays out a fixed amount of money when you die. Quite simply you pay an agreed amount on a monthly basis and the plan guarantees to pay out a cash lump sum on death.

Both the monthly premium and the cash sum are fixed and will never change so you will always know where you stand.

As long as you are between the ages of 50 to 80 and live in the UK, you are guaranteed to be accepted regardless of any health issues and will be covered for the full cash sum after the first 12 months.

Are there any additional benefits?
LV offer a free funeral benefit option that can increase your life cover by a further 10% in return for you agreeing for the cash sum to be paid directly to Dignity. Your cash sum will then be used to help towards the cost of the funeral with one of their locally nominated Funeral Directors.  

They also offer a £30 Gift Voucher as a thank you for taking out a plan.

What are the Payment options?
Monthly premiums start from £7 a month and can be increased in increments of £1, up to the maximum level of £50. These monthly premiums are payable either until you die or your 90th birthday.

What do you need to consider?
There are a number of things you need to consider when weighing up whether an over 50 life insurance plan is right for you. These tend to be similar whichever company you decide to go with but here are the ones relevant to the LV 50 Plus Plan:

If you die within the first 12 months you will not be covered for the full cash sum but your premiums paid would be refunded.

If you stop paying your monthly premiums (before your 90th birthday) your cover will cease and no money will be paid out.

The cash sum is usually paid to the estate and therefore may be subject to inheritance tax.

As the cash sum is fixed, inflation will affect its value over time.

There is a chance you could pay more in premiums than the cash sum paid out – it all depends on how long you live.

What makes the LV over 50 life insurance plan different?
As mentioned, when you buy a whole of life insurance plan with LV you become a member which automatically means you are entitled to additional member benefits. This includes discount on LV car insurance, pet, home and travel insurance and access to their 24 hour member care line.   

Additional plus points are as follows:
•    The initial qualifying period before being covered for the full cash sum is just 12 months
•    Premiums stop when you are 90 but cover continues for life

So what now?
The information provided in this review is just part of the jigsaw – it’s also important to compare the LV over 50 life insurance plan to be certain you are completely happy with your choice so don’t forget to see how it compares on price too.


Ashley Shepherd is an Over 50s Personal Finance Expert

ashley shepherd

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