Asda Over 50s Life Cover FAQs
Frequently asked questions
What is Asda Over 50s Life Cover?
Asda Over 50s Life Cover is a simple, easy to arrange life cover plan that pays out a guaranteed cash lump sum when you die. There are two options to choose from, capped and uncapped.
The uncapped option starts from £5 a month (starting premium depends on your age). It helps you make sure something’s in place to make things a little easier for your family at what could be a difficult time. Depending upon how long you live, you may end up paying more than is paid out when you pass away. Premiums are payable for a maximum of 30 years– GUARANTEED.
With the capped option, premiums start at £15 a month (depending on your age). This option means you’ll stop paying once the total you’ve paid reaches your chosen amount of cover. So if you chose cover of £4,000, you’d stop paying premiums as soon as you’ve paid up to that amount. It means no matter what age you reach, you’ll never pay in more than will be paid out when you die– GUARANTEED.
The minimum amount of cover you can have is £650, and the maximum is £10,000. So depending on your age you may find that you are asked to pay more than the minimum premium of £5 for the minimum amount of cover of £650
What are the main features?
As well as a guaranteed cash lump sum, Asda Over 50s Life Cover provides the following:
- The option to never pay in more than is paid out - with our capped premium option
- Guaranteed acceptance and no medical
- Available to UK Residents aged 50 to 80.
- Uncapped cover starts from £5 a month, and our capped payment option from £15 a month
Starting premiums depend on your age
Who can apply for Asda Over 50s Life Cover?
If you're a UK resident aged between 50 and 80, you're guaranteed to be accepted. Plus, if your spouse or partner is also a UK resident aged between 50 and 80, they're also guaranteed to be accepted. However you can't have a joint plan - so each of you will need to apply for your own plan.
When does cover start?
If you apply online you can get instant cover. Alternatively, you can arrange instant cover over the phone, just call 0800 202 8104^ to speak to one of our friendly colleagues.
^For Textphone, please dial 18001 first. Lines open from 8am to 8pm Mon-Fri, 8am to 4pm Sat.
How long am I covered for?
Asda Over 50s Life Cover is a whole of life plan. This means that providing you keep up-to-date with your premiums, you're covered for the rest of your life. However, if you stop paying your premiums early you won't get anything back and you won't receive a cash lump sum when you die.
Plus, if you have chosen to cap your premiums you’ll never pay in more than the amount paid out by the plan. This is because as soon as the total of the premiums you've paid reaches your chosen amount of cover your monthly premiums stop, but you'll still be covered for the rest of your life.
If you choose not to cap your premiums – depending on how long you live you could end up paying more in premiums than is paid out when you die.
How much does Asda Over 50s Life Cover cost?
With Asda Over 50s Life Cover you can choose a level of cover to suit you, so you can pay in anything from £5 up to £50 a month (up to £100 a month if you apply over the phone). Or you can choose to cap your payments so that you stop paying once the amount you’ve paid reaches your chosen cash lump sum. This means it's guaranteed that you’ll never pay a penny more than you get out. This type of cover starts from £15 a month and goes up to £50 a month (up to £100 if you apply over the phone).
What about inflation?
Because the amount of cover is fixed when your plan starts and doesn't change. It’s important to remember that inflation in the future will reduce the buying power of the cash lump sum you choose. You should bear this in mind when choosing your amount of cover.
Do I need a medical?
No. If you're a UK resident aged between 50 and 80, you're guaranteed to be accepted. You won’t need to visit your doctor for a medical, you won’t be asked any personal questions and there's no need for a doctor’s report when you apply either.
How do I apply?
Applying for Asda Over 50s Life Cover is easy. You can apply now. Just make sure you have read the Important Information, then fill out the online application form and as soon as your application is accepted, you'll be covered instantly. Or you can call 0800 202 8104^ and speak to one of our friendly colleagues.
^For Textphone, please dial 18001 first. Lines open from 8am to 8pm Mon-Fri, 8am to 4pm Sat.
Where can I find more information about this life cover?
For an explanation of the insurance service provided to you, please read the Important information documents.
Can I apply for a joint life plan?
No, the plan is designed to cover the life of the plan holder only. If you and your partner both want cover, you must each take out a plan.
How do I pay for this cover?
You'll need to pay for your Asda Over 50s Life Cover each month by Direct Debit. It's the simplest and safest way to make monthly payments from your bank or building society.
Does the plan have a cash-in value?
No. The plan has no cash-in value and it only pays out on death.
What happens if I stop paying my premiums?
If you have chosen not to cap your premiums you are required to pay them for a maximum of 30 years, or until you die if that is sooner.
If you have chosen to cap your premiums you need to pay them until they equal to the amount of cover you have.
If you stop paying your premiums before either of these, your plan will end, and you won't get anything back. This means you'll no longer be covered, and the plan won't pay anything out if you die.
This plan is not a savings plan and has no cash-in value at any time.
Are the benefits tax-free?
The final lump sum is tax-free, and will be paid to your estate. However your estate may be subject to Inheritance Tax.
Who provides this insurance?
Asda Over 50s Life Cover is provided by LV=. LV= were founded in 1843 and have a long history of providing financial security for their members and customers.
What if I change my mind after I’ve taken out Asda Over 50s Life Cover?
You have the right to cancel your plan at any time. If you cancel within 30 days of it starting you'll receive a full refund of the premiums you've paid. If you cancel at any other time, you get nothing back. This plan isn't a savings plan and has no cash-in value at any time.
What should I consider before applying?
Before applying for Asda Over 50s Life Cover, you should make sure you have read all the information available to you on our website. We have provided this information so that you can make a decision about whether this plan is right for you. When deciding if this plan is suitable for you, you should consider not only the benefits of the plan, but also the risk factors, such as affordability or your personal circumstances. More information can be found on our Important Information page. Please note the information on this website should not be considered as advice. It's up to you to decide if this plan is right for you.
What does the term 'charge' mean?
’Charge’ is the term used to describe the process which allows your cash lump sum to be paid to Dignity and used towards your funeral costs.
What is the maximum amount of Funeral Benefit I can receive?
The maximum funeral benefit receivable is £1,000. If you chose the Funeral Benefit option, your cash lump sum will go towards funeral costs. The way the extra 10% is worked out depends on your amount of cover, and the eventual cost of your funeral. For example, if your cash lump sum is £5,000 and your funeral cost is only £3,000, the extra 10% would be calculated on the cost of the funeral (£3,000). Dignity would only charge you £2,700 (£3,000 - 10% = £2,700) and it would be taken from your Asda Over 50s Life Cover plan. The remaining £2,300 would be paid to your estate.
If your cover is less than the cost of your funeral - the extra 10% is calculated on your amount of cover. For example if your funeral cost £3000, but your cover was £2,500 - then Dignity would add 10% extra to your cover (£2,500 = 10% = £2750) - and the remainder £250, would need to be paid by your estate. For more information please read our brochure.
Can I use any funeral director and still receive the Funeral Benefit option?
No. To receive the Funeral Benefit (the extra possible 10%) on your cash lump sum you have to use a Dignity Funeral Director. There are over 680 Dignity Funeral Directors throughout Britain and Northern Ireland. Dignity is one of the UK's leading funeral planning organisations and each year they conduct around 63,500 funerals.
How much does the Funeral Benefit cost?
At Asda we’re always trying to bring you the best value for money and that's why choosing the Funeral Benefit option won't cost you a penny extra.
Should I tell my loved ones I have taken out this Funeral Benefit?
Yes. It is important to let your loved ones know about your intentions. If your funeral is arranged with an alternative funeral provider, the money that would have been paid to Dignity would be paid to your estate. However, the extra possible 10% would not be received and the cash lump sum paid out by your plan may be subject to inheritance tax.
What if I decide the Funeral Benefit isn't right for me?
You can change your mind at anytime by simply contacting Dignity. Your charge would be released and your Asda Over 50s Life Cover plan would continue as normal (excluding the extra possible 10%).
What happens to the Funeral Benefit option if I die within the first 12 months?
Although you’re able to ‘charge’ your Asda Over 50s Life Cover plan today, you may not be entitled to your Funeral Benefit until you have held your plan for 12 months. If you were to die within 12 months of your plan starting, we may only pay out what you’ve paid in, without interest. In this instance Dignity would release the ‘charge’, and the proceeds of your plan would be paid to your estate and not to Dignity. However Dignity would still be happy to arrange your funeral and apply the equivalent 10% discount, but your next of kin would need to pay for your funeral at the time.
Can I increased or decrease my monthly payments during the life of my plans at any time?
You can't increase your payments - but if you want more cover you can take out an additional plan. You can do this as long as your total monthly payments are less than £100 and your combined amounts of cover total less than £25,000. This includes all your ASDA plans - as well as any other similar guaranteed life cover plans that you have with LV=. Monthly payments can't normally be decreased, but if you are having difficulties in making payments please call us.
Can I ‘charge’ more than one plan to Dignity?
Yes, if you have more than one Asda Over 50s Life Cover plan you can charge them all to Dignity and the 10% will be added to the combined cash lump sum total of the plans. But no matter how many plans you charge to Dignity the maximum amount of Funeral Benefit you can receive is capped at £1,000. If you buy more than one ASDA Over 50s Life Cover plan your Funeral Benefit of 10% will apply to all of your plans.
However if you buy an LV= 50 Plus plan from LV= or from another brand you only get the funeral benefit on the first plan that you bought. These brands include Readers Digest, RAC, & Standard Life. If you’re not sure if this plan will be eligible for Funeral Benefit call us on 0800 202 8106 and we’ll be happy to help.