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Over 50s Life Cover

Peace of mind for you and protection for your family, ensuring that even though you’re no longer there in person, you’re still providing a helping hand

Over 50s Life Cover

Frequently Asked Questions

Here we answer some of the most commonly asked questions about our Over 50s Life Cover, which is designed to leave your loved ones a guaranteed lump sum payout when you die. If you can't find the answer to your question, please contact us.

About the 50+ Life Cover Policy

What is the 50+ Life Cover policy?

The policy is a with profits Whole of Life insurance policy - which means your cover lasts for as long as you pay the premiums - with a minimum pay out guaranteed when you die.

Who can have a 50+ Life Cover policy?

As long as you are aged between 50 and 80 and are a UK resident, you are eligible to take advantage of the benefits of the 50+ Life Cover insurance policy. If you already have a policy of this type with us, you can take out a second policy, however you cannot exceed a maximum premium of £100 per person.

Do I need to provide medical documents when I take out the 50 Plus Life Cover Policy?

No, you do not need to provide any medical documents when applying for our Over 50s Life Cover Policy. There won't be a medical examination and you won't have to answer any health-related questions. Even if you've had health problems in the past, you will be accepted for cover if you are aged 50-80 years old.

Because you don't need a medical to take out our 50+ Life Cover policy, if you die within the first two years of the policy, the cash sum paid out will be limited to returning the premiums you have paid. The exception to this is in the case of accidental death, when the full lump sum will be paid.

Is joint cover available with 50+ Life Cover Policy?

Although you can't take out a joint cover 50+ Life Cover Policy, your partner can take one out as well, so you could both benefit from providing a cash lump sum to your loved ones after your death.

Can I use this as a savings plan?

The 50+ Life Cover policy is designed to provide life assurance cover so it is not suitable as a savings plan.

However the following Foresters Friendly plans can all be used as a savings plan:

Tax Exempt Savings Plan

Guaranteed Savings Plan

Stocks & Shares NISA

Does everyone pay the same monthly premiums?

The monthly premiums you pay depend upon your age at the start of the policy and the amount of cover you require.

When does my over 50s life insurance cover start?

Your cover will begin automatically once your application is processed, no matter which month your initial payment is taken.

A Policy Schedule will be provided with your Policy Pack which will confirm the commencement date of your Policy.

Can I choose who my beneficiary is?

Yes, you will have the option to nominate a beneficiary(ies) when you apply. Your nominated beneficiary(ies) can claim up to £5,000 from the policy proceeds without having to wait for your estate to be sorted. Any excess would become part of your remaining estate and have to wait for probate.

Are there any policy restrictions which would result in non payment of the cash sum?

Yes, in the first two years of cover the policy will only pay out the cash sum if you die as a result of an accident. There are restrictions on the payment of this accidental death benefit.

It will not pay out where death is caused directly or indirectly by:

    • Intentional self inflicted injury.
    • The taking of drugs, alcohol or poisonous substances including the inhalation of gases or fumes.
    • Active participation in any criminal act.
    • Active participation in any riot, civil commotion, insurrection or war (whether war has been declared or not) or any incident thereto.
    • Engaging in any form of racing (including time trials).
    • Participation in any form of aviation other than as a passenger on a regular fare paying airline.
    • Any accident incurred while the life assured is resident outside the United Kingdom.
    • Illness or disease of any kind.

If death results from any of the above in the first two years you will receive a refund of the premiums paid plus any bonuses to date.

Are there any charges?

There are costs in running the fund which include the costs of buying and selling assets. We deduct charges before we declare bonuses meaning that there are no additional charges for you to pay. For more information about charges, see the 50 Life Cover Key Features Document.

Can I cancel my over 50s life insurance policy?

Once you have taken out an Over 50s Life Cover policy with us, you have 30 days in which to change your mind.

If you choose to change your mind within this 30 day cancellation period a full refund of all monies paid will be made. You can do this by completing and returning the cancellation form to Foresters Friendly Society, Foresters House, 29-33 Shirley Road, Southampton, SO15 3EW.

I'm not sure if the 50+ Life Cover policy is right for me. What should I do?

If you're unsure as to the suitability of this product you should seek advice from a Financial Adviser. You may have to pay for this advice.

Payments into the policy

How much will my premiums and level of cover be?

Monthly premiums range from £10 to £100 and your level of cover will depend on your age and the monthly premium you choose to pay. Use our Quick Quote to see what cover you can get depending on your age and the premium paid.

Will my Over 50s Life Cover premiums change over time?

Premiums are fixed and cannot be increased or decreased, so once you've chosen your premium, that is the amount you have to continue to pay each month for the rest of your life or until you reach the age of 90. At 90 you automatically stop paying premiums - but your life cover continues. If you want to increase your total life cover, then you simply need to take out an additional policy.

How do I pay?

Payments are by Direct Debit - which is why we'll ask you to provide your bank details when you apply.

If I take out an Over 50s Life Cover Policy how long will I pay into it?

When you take out a policy and choose a monthly premium, you will pay that premium for the rest of your life or until you reach the age of 90. At which point you automatically stop paying premiums, but your life cover continues.

Why do I stop paying premiums at 90 years old?

You stop paying premiums at age 90 to reduce the possibility of over-paying into the policy. When your premiums cease at age 90, your guaranteed lump sum and any bonuses added will remain in place and will continue to be paid out on your death. Your entitlement to future bonuses will continue beyond age 90 even though you have stopped paying premiums to aim to increase the final cash sum paid to your dependents.

The addition of bonuses is not guaranteed and will depend on the performance of our with profits Order Insurance Fund and how we decide to distribute any profit. For more detailed information on how we manage the fund see the 50 Life Cover Key Features Document.

What happens if I stop paying my premiums before I reach 90?

If you stop paying premiums before you reach 90 your life cover will cease immediately. During the first two years your policy will have no cash-in value. After this time you can cash-in your policy, but the amount you receive back may not be as much as you have paid in.

Returns on the plan

Where is the money invested?

Any money paid into the 50+ Life Cover policy is invested in Foresters Friendly Society's with profits Order Insurance Fund. By spreading the money paid into the fund across a number of different types of investments you benefit from the exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash.

A further advantage of this approach is that if the return from any one particular asset type is poor, the bonus rate may be protected from the full impact of this fall as the other assets forming part of the overall fund may perform better.

How does the money in a With Profits Fund grow?

Premiums paid into the 50+ Life Cover insurance policy are invested in our with profits Order Insurance Fund, which provides your policy with the potential for growth by way of bonuses. Foresters aim to add bonuses to your guaranteed lump sum annually - with the possible addition of a final bonus being paid after you die. Once bonuses are added they cannot be taken away and will increase the pay out your dependents will receive. The addition of bonuses is not guaranteed and will depend on the performance of the Order Insurance Fund and how Foresters Friendly Society decides to distribute any profit. For more detailed information about how we manage the fund see the 50 Life Cover Key Features Document.

Is the payout guaranteed?

Yes. We guarantee to payout on the policy following your death. This is subject to you having paid all of your monthly premiums for the whole time you have had the plan. We guarantee to make a cash pay-out of at least the guaranteed lump sum upon death after the policy has been going for two years (or in the case of accidental death during the first two years) as long as you continue to pay your premiums.

Will the payout be liable to tax?

The death benefit is paid out free of income tax at the basic rate and capital gains tax - but may be liable to inheritance tax unless the policy is written in trust.

How can my family or beneficiary make a claim on my 50+ Life Cover Policy?

Your family, or beneficiary, will need to contact our Claims team on 0800 101 8312 and we will confirm what details are needed to process a claim for them.

What happens if I surrender my 50+ Life Cover Policy?

If your circumstances change, meaning you can no longer afford your premium, as long as you've paid it every month for two years, we will provide a surrender value for the policy that will mean you get something back, however this is likely to be less than you have paid in.

Please be aware that if you stop paying your premiums within the first two years, your life cover will stop and you won't get any of your money back. If you stop paying at any time after two years, but before you die, it is likely that you will get back less than you've paid in.

About Foresters Friendly Society

Who is Foresters Friendly Society?

Foresters Friendly are a mutual society, founded in 1834 by ordinary people with a common purpose - to support each other through financial and other difficulties.

We've been looking after our members, and their finances, for over 180 years, offering care and protection through relevant affordable financial products.

Since 1834 our aim has been to be open, approachable, honest and fair, treating all our members as individuals.

We always put the interests of our members first.

How safe is my money?

You'll be pleased to hear that our funds have grown steadily over the years and our financial position remains strong. (Source: Reports & Accounts 2015). However, note that past performance is not a guide to the future.

However, if in the unlikely event that Foresters Friendly Society were to be declared insolvent, you would be able to make a claim under the Financial Services Compensation Scheme.

About Friendly Societies

What is a Friendly Society?

Friendly Societies have been around for hundreds of years. They were founded on the idea of mutuality - that if a group of people contributed to a mutual fund, an individual within the group could benefit in a time of need. The principles still apply - friendly societies are owned by, and operate in the interests of, their members. Unlike public limited companies, they use revenues to the benefit of their members rather than distributing profits to their shareholders.

How do Mutuals perform, compared to PLCs?

With no shareholders to answer to, mutual societies can ensure their profits are only used for their members’ benefits by sharing this amongst members, or re-investing to provide potentially better returns, better value or higher levels of service.

Over the last 10 years, the average mutual with-profits policy produced 29% more than an equivalent from a PLC insurer – that’s around £11,400 more after 25 years for a £50 per month policy.

(Source: Association of Financial Mutuals:  AFM Key facts about mutual insurers and friendly societies November 2014)

What is a Mutual?

UK financial organisations are either authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) and can be regulated by one or both regulators, and are either mutuals or public limited companies (PLCs). Unlike a PLC, a mutual organisation has no external shareholders to pay in the form of dividends and does not seek to make large profits or capital growth.

Mutual organisations are owned and run for the benefit of their members and their profits are usually re-invested for the benefit of members, although some may be used for internal finance to ensure the mutual is sustainable, safe and secure.

Today, UK mutuals account for over £116 billion in revenue every year and 1 in 3 people in the UK are a member of at least one mutual. (Source: The Mid-Term Mutuals Manifesto 2013 and the Mutual 2013 Yearbook)

Membership and Extras

I read somewhere about benefits - but I imagine I pay for those somewhere?

When you take out one of our policies or plans, you automatically become a member of Foresters. As a mutual, we don't have to answer to external shareholders. Instead, we use all our profits to benefit our members. All Foresters customers can take advantage of Foresters Extras, a range of benefits we offer at no additional cost.

Do I get any additional benefits as a Foresters customer?

All our customers benefit from Foresters Extras, a range of benefits we offer at no additional cost.

Help and support

Where can I get help?

For help and support, please contact Foresters Friendly Society.

50+ Life Cover - Foresters Extras >>

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