Companies

< Back

Norwich Union

Guaranteed Lifelong Protection Plan

When you die, your loved ones may have a hard time paying off your remaining debt, or the cost of your funeral may be more than they can handle financially. A Guaranteed Lifelong Protection Plan from Norwich Union will help ease the financial pressure on your family. If you die during your policy term, Norwich Union will pay out a cash sum to your survivors. This money can help cover your funeral expenses and your remaining debts, or it can be used as an inheritance for your children and grandchildren.

Applying for the plan is easy. Norwich Union will not ask any questions about your health; whether you are healthy or ill, you are eligible for cover. You must, however, be between the ages of 50 and 80 to qualify. Monthly premiums start at just £10 a month and go up to £50 a month. Norwich Union guarantees that your monthly premiums will never increase.

If you are between the ages of 50 and 64 when you start your plan, you will pay your monthly premiums for 20 years. If you start between the ages of 65 to 75, you will pay a monthly premium until your 85th birthday. And if you purchase the plan in your late 70s, you will pay a monthly premium for 10 years. This plan, however, has no cash-in value; therefore, the cash sum paid out in the event of your death may be less than the total amount of the premiums you paid out over the policy term.

You are entitled to the full amount of the insured sum after you have held your policy for 12 months. If you happen to die within the first 12 months of your policy term, your loved ones will receive a refund of the money you had already paid into the plan. If you die from an accident during the first 12 months of your plan, Norwich Union will pay your survivors the total sum insured. And if you die from an accident any time after the first 12 months of your plan, Norwich Union will double the amount of your lump sum payment.

Guaranteed Whole of Life

Norwich Union’s Guaranteed Whole of Life plan also pays out a cash sum when you die. But unlike other plans, there is no fixed term; you are fully covered for life. This type of plan is ideal if you think your estate will be subject to an inheritance tax. At present, the inheritance tax affects estates worth more than £312,000; any estate valued over this amount is subject to a 40 percent tax charge. With this plan, Norwich Union will pay out a tax-free cash payment to your loved ones in the event of your death, ensuring your family’s financial freedom. You can also put your plan into trust; this separates the plan’s cash payout from the rest of your estate, further protecting it from taxes.

With the Guaranteed Whole of Life plan, you choose the amount of money you leave to your loved ones. To cover the cost of inflation, you can add the Yearly Increase option to your plan; this increases your level of cover by 5 percent a year. Your premiums will also increase by 5 percent a year. Norwich Union also offers an Extra Cover feature. This option allows you to increase the total amount of your cover, even after the start date of your plan.

You should consider purchasing this feature if you expect your financial situation to change in the future. If you come into an inheritance or a small fortune of some kind, your inheritance tax liability may increase. With the Extra Cover feature, you can increase your level of cover anytime your financial situation changes, to ensure that you always have an adequate amount of cover. To qualify for this option, Norwich Union must approve of your medical details.

The amount of your premium depends upon your age, occupation and medical history. Your premium will increase if you take out a joint plan with your partner. The amount of cover you choose also affects your premiums; with a high level of cover, you will be paying a high premium. Monthly premiums start at just £5 a month. You can also pay for your policy by annual premiums, or you can make one single payment when you first take out the plan.

< Back