The Sun Life Direct Over 50 Life Insurance Review – Guaranteed Over 50 Plan
May 16, 2014
The third of my Over 50 Life Insurance Reviews is about a company I am certain you will either have heard of or at least seen the adverts. Think Michael Parkinson; Gloria Hunniford; free parker pen. Yes you’ve got it; step forward Axa Wealth’s Sun Life Direct. (updated 16/08/16)
Who are Sun Life Direct?
Sun Life Direct is part of the AXA Wealth business, providing life assurance policies for over 200 years. They were the first company to offer no medical life insurance in 1900, going on to introduce the first Over 50s life insurance plan in 1979.
It therefore will probably come as no surprise to you that they are the leading provider of over 50s life cover with over 850,000 Guaranteed Over 50 Plan policyholders.
How does the Sun Life Direct Guaranteed Over 50 Plan work?
The Sun Life Direct Guaranteed Over 50 Plan is a whole of life insurance plan that pays a fixed cash sum to your family when you die. This life cover plan has a wider age range than other plans, guaranteeing to accept you as long as you are between the ages of 50 and 85 and live in the UK, regardless of the state of your health.
If you die within the first 2 years you are not covered for the full cash sum however all premiums paid would be fully refunded plus half as much again. Having said that you are immediately covered if you die as a result of an accident or within 3 months as a result of your injuries.
Your first month’s cover is free of charge and Sun Life Direct offer a free gift to welcome you as a customer.
NEW: Premium Cap Option
Recently introduced you can now choose not to pay your premiums until your 90th birthday; if you prefer you can select an earlier date and in exchange for paying a higher monthly premium you will retain all the benefits.
Is there a Funeral Benefit Option?
The Sun Life Direct Funeral Benefit option is in association with Dignity who will contribute an additional £300 towards the cost of a funeral when you agree for your cash sum to be paid directly to them. When the time comes, the cash sum along with the £300 will help pay the funeral costs with one of their nominated independent funeral directors.
What are the Payment options?
Sun Life Direct offers the lowest starting premium in the market place at just £3.90 a month, increasing to £74 or a maximum cash sum of £25,000 with premiums payable for life.
What do I need to consider?
As with all Over 50 life insurance plans, there are some important points you need to consider before signing on the dotted line:
If you were to die during the first two years, you would not be covered for the full cash sum however your premiums would be refunded plus half as much again.
As the cash sum is fixed and will never change, inflation will reduce 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.
You need to continue paying your monthly premiums for life. If you stop paying for any reason or cancel your plan, your life cover would cease and no money would be refunded.
The cash lump sum is usually paid to the insured person’s estate and therefore maybe subject to inheritance tax.
What makes the Sun Life Direct Over 50 life insurance plan different?
If you are looking for a guaranteed over 50 plan, here are some of the main reasons why it may be worthwhile considering Sun Life Direct over 50 life insurance:
• The Sun Life Direct Guaranteed Over 50 Plan is the UK’s leading Over 50 Life Insurance Plan
• They offer the lowest starting premium of only £3.90 a month
• UK residents from 50 up to the age of 85 are guaranteed to be accepted
• Your first month’s premium is free
• You are covered immediately if you die as a result of an accident
So what now?
As always, in addition to looking at the features, benefits and conditions of the plan, it’s also extremely important to compare over 50 life insurance quotes to ensure you are happy with the cash sum paid out. Visit the Sun Life website for a free quote and more information on their plan; alternatively click here to compare over 50s life cover with a number of leading providers.