Guaranteed Over 50 Plan - Commonly Asked Questions

Why should I consider a Guaranteed Over 50 Plan?

Guaranteed Over 50 Plan is an easy way to leave a fixed cash sum for your family after you’ve gone, either as a gift or to help towards funeral expenses.

How does it work?

The Guaranteed Over 50 Plan is a whole of life policy - you choose a fixed monthly premium at the start and provided you keep paying them when they’re due and your Plan has been in place for at least two years, a fixed cash sum will be paid to your estate when you die.

What if I haven’t had my Plan for 2 years when I die?

If you die within the first 2 years of taking out your Plan, we’ll pay back all the premiums paid, plus half as much again.

Do I need to have a medical?

No. There are no health questions to answer, and no medical whatsoever. Provided you're aged 50 – 85 you’re guaranteed to be accepted.

How much will it cost me?

That depends on how much cover you’d like or how much you'd like to pay each month. You can choose from a range of premiums anywhere between £6 and £74 per month (subject to a maximum life cover of £20,000). When choosing your level of cover, please bear in mind that because the cash sum is fixed, over time, inflation will reduce its value.

As this is a whole of life plan, you need to choose a monthly premium you are confident you’ll always be able to afford because if you were to stop paying your premiums, your plan would be cancelled and you wouldn’t get anything back.

To help get your plan underway, your first premium is free.

Why does cover vary for men and women?

Because on average women live longer than men, we offer women up to 25% more cover than a man of their age would receive for the same monthly premium. The actual percentage of extra cover depends on your age.

Will my premiums and cover ever change?

No. Your premiums and level of cover are guaranteed, so will never change regardless of how long you live or your state of health. Depending on how long you live, the total premiums paid may be more than the fixed cash sum.

How are claims dealt with?

When the time comes for your loved ones to let us know that they’ll be making a claim, they can call us on 08457 322 223 or write to us at AXA Sun Life plc, PO Box 1810, Bristol BS99 5SN. We can then help by stopping the collection of premiums for the policy until the claim has been processed.  To process the claim, AXA Sun Life will need:

• the name and date of birth of the policyholder;
• the original death certificate; and
• evidence of the beneficiary’s entitlement to the policy proceeds.

We may also need:

• a copy of the Policy Schedule and Endorsements;
• and a copy of the policyholder's Will if there is one.

If these documents are not available, the person making the claim should contact our policy helpline on 08457 322 223.

Does the Plan have a cash-in value?

No. The Plan has no cash-in value so if you cancel your Plan or stop paying your premiums, your life cover will end and you won’t get anything back. You need to be totally comfortable that you can keep up your premiums when you take out the Plan.

When does the Plan pay out?

Once you’ve been paying into the Plan for 2 years, and as long as you keep paying your premiums for life, we will pay the full fixed cash sum on your death.

If you die within the first two years, we’ll pay out one and a half times the premiums paid in.

At any time after your Plan has started, if you were to die in a travel accident, or within 3 months of an accident as a result of your injuries, we will pay three times the fixed cash sum.

What about tax?

The fund we invest your premiums in is subject to investment income and capital gains tax which is deducted from the fund by AXA Sun Life plc. Any money paid out from your Plan will currently not be subject to capital gains tax or income tax. Tax legislation may change in the future.

The amount paid out on your death will normally form part of your estate, so may be subject to inheritance tax, unless you write your Plan subject to an appropriate trust. Tax information is based on our understanding of current law and HM Revenue & Customs practice. How taxation could affect you will depend upon your individual circumstances.

Can I cancel the Plan?

You have 30 days from the day you receive your policy documents during which you can cancel your Plan and have any premiums paid refunded in full.

After that, you can cancel your Plan at any time by notifying us in writing. Remember, if you do cancel, your life cover will end and you wouldn’t get anything back. As long as you continue to pay your monthly premiums, your Plan cannot be cancelled by us for any reason.

What else does the Plan give me?

You will have 24 hour access to Careline, a professional health information helpline, 365 days a year. This confidential telephone service offers care and counselling, guidance about men's and women's health and healthy living, and is staffed by highly experienced healthcare professionals and counsellors.

We may review this service from time to time and reserve the right to withdraw it without any advance warning.

Full details of Careline will be sent to you with your policy documents.

Who are AXA Sun Life plc?

AXA Sun Life plc are one of the UK’s leading providers of life cover and the Guaranteed Over 50 Plan is the most popular Plan of its type*. Our extensive experience spanning over 25 years has enabled us to develop a range of life cover solutions to meet the differing needs of our customers.

We’re proud that, today, over 655,000** people enjoy the peace of mind that our Plans can offer.

* Whole of life plans sold directly to the public. Source ABI statistic, Jan - June 2008.
** As at 16th July 2008.