Once you’ve made the decision to take out an Over 50 Life Insurance policy or a Seniors Term Life Insurance policy with British Seniors, you can have some peace of mind knowing that the benefit amount can help towards funeral costs and other debts after you're gone.
Life is uncertain so having a plan in place could make all the difference to our loved ones. When you’ve taken steps to put protection in place, you can feel confident that you’ve done them and yourself proud.
The British Seniors promise
Our protection products are straightforward and transparent. You decide what your budget is, and we’ll help you to choose cover that suits your needs and lifestyle. Once you’re happy with your chosen protection and premium amount, you can get covered in minutes.
We guarantee that your monthly premiums won’t change unless you decide to opt for the Increasing Benefit Option. The Increasing Benefit Option is a way to help your life insurance keep up with the effects of inflation. This option is available with all of our policies. We also guarantee that when the time comes to make a claim, we’ll respond with a fast and personal service.
Why should I worry about inflation?
There are some things in life that we have no control over - inflation is one of these. As time moves on, your lump sum benefit will stay at the figure you arranged, but the relative value of that benefit might not keep up with inflation.
In other words, you might decide to take out a policy tomorrow with a £10,000 benefit, knowing that it would be enough to help cover funeral expenses and other outstanding bills now. But you don’t know if £10,000 will be enough in 10 or 15 years’ time.
With this in mind, you might want to take steps to help protect your benefit amount from the effects of inflation. After all, every penny counts when it comes to helping protect your loved ones from funeral expenses and other debts when you die.
British SeniorsOver 50 Life Insurance
Inflation in action
You don’t have to be an economist to know that inflation has made the biggest waves in the housing market. In fact, you just have to open a paper or walk past an estate agent to witness the steady rise of property prices.
In London in 2005, the average UK home cost £235,329. By 2020, the average cost was over £500,000. That’s great news if you’re a homeowner, but a sobering reality if the house you’re trying to buy today costs much more than it did just over 15 years ago. Same bricks, same address, totally different financial commitment.
Funeral costs affected by inflation
People often take out life insurance to help cover funeral costs so that the financial burden doesn’t fall on their family alone. The average cost of a funeral has been on the rise from 2016 to 2021, and looks like it may continue to rise.
In 2016, you could have expected to pay around £6,226 for a burial depending on the choices you made, but today those same choices could easily set you back as much as £9,619. Of course, funeral costs can vary greatly depending on what you include and the supplier you choose. You may want to include flowers, which typically cost up to £523. If you opt for catering, it could add on up to £746. Meanwhile, the venue itself could cost as much as £780.
With inflation, it’s likely that these costs will continue to rise in the future. With this in mind, it’s easy to see how today’s lump sum benefit may struggle to keep pace with inflation. The good news is, there is a solution...
What is Increasing Benefit Option?
One of the ways that could help you to anticipate and stay ahead of inflation is by choosing to go for the Increasing Benefit Option (IBO) with your policy. How it works is different depending on which policy you choose:
Over 50 Life Insurance – when you choose the IBO with this policy, your benefit amount will increase automatically by 3% of your initial benefit amount each year. Your premiums will also increase automatically by a fixed amount of 4.5% of your initial premium amount each year.
Seniors Term Life Insurance - when you choose the IBO with this policy, your benefit amount will increase by a maximum of 10% annually in line with Retail Price Index. Your monthly premium increases 1.4X your benefit increase rate until your term is complete. These are compound increases.
The Increasing Benefit Option could be right for you if you want to help protect your long-term insurance cover from losing value over time due to inflation.
How do I get covered?
If you’re ready to get covered, simply decide which type of life insurance you’d like, and you can get a quote online in minutes. You can also call our UK-based team of specialists who can help you to explore your options, get you a quote and get you covered. You can get in touch for free on 0800 803 0052.