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
- Fixed premiums that don't go up, unlike some other providers^
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.
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.
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.
Can I use any funeral director and still receive the Funeral Benefit Option?
No. To receive the Dignity additional £300 contribution, you must use a Dignity Funeral Director. Dignity have over 770 Funeral Directors in the UK, many of whom have served their communities for generations. Each year on average, Dignity conducted over 73,500 funerals across the country
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, your loved ones will not receive the additional £300 contribution from Dignity. The money that would have gone to Dignity will go to your estate instead, which may then 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 (without the additional £300 contribution from Dignity).
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 if your loved ones arrange your funeral with a Dignity Funeral Director, Dignity would still be happy to offer the extra £300 contribution, but your Next of Kin would need to pay for your funeral at that time.
Can I increase 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?
If your Funeral Benefit Option is an additional £300 contribution, you can charge multiple Asda Over 50s Life Cover plans to Dignity but you will only receive one £300 contribution on the first plan that you charge to Dignity. If your Funeral Benefit Option is a fixed contribution of up to 10%, you cannot charge any further Asda Over 50s Life Cover plans to Dignity as this Funeral Benefit Option is no longer available. However, if you would like to take out another Asda Over 50s Life Cover plan, the cash sum paid when you die can still be used to help towards the cost of your funeral. Your family could use this to pay any outstanding balance directly to the Dignity Funeral Director. Please note, if you have an Over 50s plan with more than one company within the LV= Group brands, you will only be able to charge one of your plans to Dignity. These brands include; Asda, Readers Digest, RAC, Standard Life and Great Deal. If you’re not sure if a plan is eligible for Funeral Benefit please call us on 0800 202 8104 and we’ll be happy to help.