Shepherds Friendly Over 50 Life Insurance Review – The Over 50s Life Plan

Jun 3, 2014
shepherds friendly over 50 life insurance

The final review of the series looking at over 50 life insurance plans focuses on the Over 50s Life Plan from Shepherds Friendly. As I mentioned at the start of this journey, if you do have any other companies you would like me to review, please let me know and I will add them to the list.

Who are Shepherds Friendly?
The Shepherds Friendly Society has more than 185 years experience under its belt, starting life as a sickness and benefits society based in Yorkshire. As a mutual society, the company has over 66,000 members throughout the country, offers a range of financial solutions and has call centres based solely in the UK.    


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How does the Shepherds Friendly Over 50s Life Plan work?
The Shepherds Friendly Over 50s Life Plan is a whole of life insurance policy designed to pay out a cash sum when you die. You are guaranteed to be accepted for cover as long as you are between the ages of 50 and 75 (slightly lower age range than with other providers) and live in the UK.

You are covered for the full cash sum after a waiting period of 2 years, unless death is as a result of an accident; in which case you would be covered immediately. If you were to die during this initial 2 year period, 150% of the premiums paid would be refunded.

It is worth pointing out that Shepherds Friendly offer different rates for smokers; good news for those non smokers amongst you who will receive preferential rates.
Is there a Funeral Benefit Option?
The Shepherds Friendly funeral benefit option is in association with Golden Charter. By agreeing to have your cash sum paid directly to Golden Charter when you die, they will contribute an extra £250 of life cover to go towards the funeral costs.

When the time comes, a Golden Charter nominated funeral director will carry out the funeral service using the cash sum to help with funeral costs. Any additional costs will need to be paid for by the family or if there is any money left over, this will be paid to the estate.

What are the Payment options?
Monthly premiums for the Shepherds Friendly Over 50 life insurance plan range from £10 to £50 increasing in increments of £1. Premiums are payable either until you die or until your are 90 years old.

What do I need to consider?
As with all Over 50s life insurance plans, there are certain things that you need to be aware of before agreeing to go ahead with the cover. These are as follows:

If you stop paying your monthly premiums when they are due, or decide to cancel the plan, your life cover would end and no money would be paid out.
You are not covered for the full cash sum for the first 2 years. If you were to die during this time, 150% of the premiums paid would be refunded.
Depending on how long you live and therefore how long you are paying into the plan, there is a chance that your premiums could exceed the cash sum paid out when you die.
As the cash sum usually forms part of your estate, it may be subject to inheritance tax.  
As the cash sum is fixed, inflation will reduce its value over time.

What makes the Shepherds Friendly Over 50 life insurance plan different?
Shepherds Friendly re-launched their over 50 life insurance plan back in October 2013, boosting the cash sums available to customers. Therefore if you are looking for an over 50s plan, it may be worth comparing over 50 life insurance quotes with Shepherds Friendly to see if you can get more ‘bang for your buck’.

Don’t forget Shepherds Friendly also offer favourable rates for non smokers too so this may increase your cash sum further.

So what now?
Now you have read the final over 50s life insurance review, it makes sense to compare quotes to see which company offers the best financial deal.

Don’t forget if you are looking for over 50s life insurance and in good health, it may be worth comparing prices for a regular whole of life insurance plan too. The application process is longer and does take into account your health and lifestyle but the cash sums paid out can be at least 40% higher. You can compare both options by clicking here.

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Ashley Shepherd is an Over 50s Personal Finance Expert

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