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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

Product Performance

How will the level of cover in the 50+ Life Cover policy increase?

Unlike most over 50s life insurance plans, our 50+ Life Cover policy provides your cover with the potential to increase. We do this by investing your monthly premiums in our with profits Order Insurance Fund which provides your policy with the potential for growth by way of bonuses.

What are bonuses?

Your monthly premiums are invested in our with profits Order Insurance Fund along with the other Order Insurance Fund policyholders (excluding those with ethical investments). By spreading the money paid into the fund across a number of different types of investments you also benefit from exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash. Dependent on the performance of this fund, Foresters Friendly Society aim to add annual bonuses to increase the guaranteed lump sum your dependents will receive.

When your dependents make a claim following your death, we also aim to add a final bonus to the value of the policy. This is done to ensure that the policy's payout reflects a fair share of the Order Insurance Fund.

Please note: The addition of any bonuses is not guaranteed, however once a bonus has been added to the 50+ Life Cover policy it cannot be taken away and will become part of the guaranteed value.

How do bonuses work?

We aim to pay bonuses in two ways:

1. Annually:

Annual bonuses are declared:

On the guaranteed maturity amount of the policy

The guaranteed lump sum is the level of cover you chose when you took out the policy. We aim to declare a bonus on this amount annually and these bonuses will then increase the policy's guaranteed lump sum for future year's bonus declarations.

On any previous bonuses declared on the policy

After the policy has been in place for a year, in addition to any annual bonuses you receive on the policy's guaranteed lump sum, an additional bonus may be paid on any previous bonuses that have been declared.

For example, if your policy has had a total of £70 in bonuses declared previously, this amount may receive a bonus too which all adds to the lump sum your dependents will receive.

2. Final bonus:

When you pass away and your dependents claim on the policy, we also aim to add a final bonus to the total value of the policy.

Potential 50+ Life Cover policy payouts

The table below demonstrates the guaranteed payout and the potential payouts of a 50+ Life Cover Policy on the policyholder’s death.50+Life cover policy table

  • The 50+ Life Cover policy is not a savings or funeral plan - there is no guarantee that the amount received would cover the costs of a funeral.
  • The potential payouts are shown after charges, are only examples and are not guaranteed - what will be paid depends on how the investments grow and on the tax treatment of the investment.
  • The yearly growth rates are our reasonable estimate of what the investment returns could be and are subject to the maximum rates specified by the Financial Conduct Authority.
  • If premiums are stopped within the first two years, the life cover will stop and you won’t get back any of your money. After two years you are likely to get back less than you’ve paid in.
  • If you die during the first two years of the policy, payouts are limited to the return of premiums - other than in the case of accidental death when your dependants will receive the full lump sum.
  • You should be aware that inflation will reduce what can be bought in the future with the cash sum.

Past performance

The following annual bonus rates have been declared for the 50+ Life Cover policy:

Year Annual Bonus Rates
2015 1.5% of the guaranteed lump sum and 1.5% of previous bonuses
2014 2% of the guaranteed lump sum and 2% of previous bonuses
2013 2% of the guaranteed lump sum and 2% of previous bonuses
2012 2% of the guaranteed lump sum and 2% of previous bonuses
2011 2% of the guaranteed lump sum and 2% of previous bonuses
2010 2% of the guaranteed lump sum and 2% of previous bonuses
2009 2% of the guaranteed lump sum and 2% of previous bonuses
2008 2% of the guaranteed lump sum and 2% of previous bonuses


Please note
: The addition of any bonuses is not guaranteed. Bonuses will depend on the future performance of the Order Insurance Fund and how we decide to distribute any profit. To find out more about the addition of bonuses and how we manage our fund please read our Principles and Practices of Financial Management (PPFM).

Please remember that inflation will reduce the spending power of the lump sum payout in the future.

We may vary the design of a product to best meet the needs of our policyholders which may affect the timing and size of future bonuses. Therefore the above table is provided for information purposes only and should not be considered an indication of likely future performance.

For more details about the 50+ Life Cover policy, please read the Over 50 Life Cover Key Features Document.


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