Over 50's Guaranteed Lifelong Protection Plan

You'll want to understand all the facts about Over 50's guaranteed Lifelong Protection Plan before you take out your plan. So, we've put together some easy-to-follow, frequently asked questions and answers:

What is life insurance?

It's a straightforward and affordable way of helping to make sure that your loved ones are financially secure in the event of your death. A life insurance plan pays out a cash lump sum when the person(s) insured dies.

The lump sum can be used to help provide financial support to your loved ones, or to make life easier for them by helping to cover costs like funeral expenses or inheritance tax.

There are different types of life insurance, so it's important to pick the right type for you.

What is a Guaranteed Lifelong Protection Plan?

It's a life insurance plan that pays out a guaranteed cash sum to your loved ones when you die. The plan is specifically designed to guarantee life cover to anyone aged between 50 and 80 at the start of the plan.

It could be the right sort of life insurance to choose if you want to leave a specific amount of money for your loved ones.

The plan has no cash-in value at any time and it won't pay out if the premiums aren't paid for the agreed premium term. Depending on how long the plan runs, the amount paid out on your death may be less than the total amount you've paid in premiums. Inflation will reduce the value of the cash sum.

The premium term will depend on your age at the start of the plan:

• Age 50 to 64, you'll pay for 20 years
• Age 65 to 75, you'll pay until the plan anniversary after your 85th birthday
• Age 76 to 80, you'll pay for 10 years.

Who can apply?

You can apply for an Over 50's Guaranteed Lifelong Protection Plan if you're a UK resident aged between 50 and 80 at the start of the plan and have not exceeded our premium limits.

A UK resident is defined as someone who's permanently resident in the United Kingdom of Great Britain and Northern Ireland (excluding the Channel Islands and the Isle of Man). Only one person can be covered by the plan.

How much cover can you get?

You can choose the amount of cover (PDF xxKB) you want and your age will determine the premium we charge you. Alternatively, you can decide how much you want to pay and your age will relate to how much cover we will offer you. Your age will determine the maximum amount of cover available to you and the maximum premium permitted is £50 per month.

• If you die after you've been paying your premiums for 12 months, we'll pay out the full sum insured, or if you die as a result of an accident, we'll pay out double the sum insured.

• If you die within the first 12 months, we will make a payment that is equal to the premiums paid. However, if you die within the first 12 months as a result of an accident, we'll pay out the sum insured.

Can I have more than one plan?

Yes, but for plans issued on or after 25 January 2010 the number of plans you can have is restricted to a total monthly premium of £100 per life insured. Any plans issued before 25 January 2010 are not taken into account when applying this limit.

How can you pay?

You can pay your premiums by monthly direct debit.

Will your premiums change?

No. With a Guaranteed Lifelong Protection Plan, once you've chosen your monthly premium at the start of the plan, we guarantee it will stay the same for the duration of the premium term.

Can you make changes during the plan?

No, the Guaranteed Lifelong Protection Plan is designed to offer a fixed amount of life cover and you can't make any alterations to the plan once it's started.

What if you stop paying?

If you stop paying your monthly premiums before the end of the premium term, your plan and cover will end 30 days after the date the last premium was due. You won't get back any premiums you've paid.

Can you cash in your plan?

No, this plan has no cash-in value at any time.

How should your loved ones make a claim?

At Aviva, we aim to make the whole claims process as smooth as possible. When you die, your loved ones or representatives should call or write to us as soon as possible and we'll let them know what we need to sort out the claim.

Can you choose who gets the money?

Yes. By putting your plan under trust, any life cover pay-out could go to the people you choose, quicker and with less fuss. Under current tax rules, it could also help protect the pay-out from inheritance tax. Alternatively, you can specify who receives the proceeds from your policy in your will, but this could become liable to inheritance tax, and might not be paid as quickly as if it was under trust.

The tax treatment will depend on your personal circumstances and you should bear in mind that the law relating to tax may change in the future.

Are pay-outs taxed?

Pay-outs for life claims are usually free of income tax and capital gains tax, but in some circumstances inheritance tax may be payable. You can normally help avoid this by putting your plan in trust.

The tax treatment will depend on your personal circumstances and you should bear in mind that the law relating to tax may change in the future.

How do you apply?

When you're ready to apply, just call one of our advisers and they'll send you an application pack in the post. Or, you can find out more about how to apply directly. We can only advise on our own products.

Call us on 0800 404 6427* to request an application pack.

We can only advise on our own products.

Lines are open Monday to Friday 8am - 9pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

WC05089 01/2012