One Family life insurance review 2021
A relative’s death can have a devastating effect on a family, however life
insurance can provide a small degree of financial relief in a difficult time.
One Family Life offers an insurance product aimed at the over 50’s. Let’s see
what kind of financial protection it can provide for you.
Contents
Who Are They?
One Family is a specialist Over 50’s Life Insurance agency, focused on the needs
of the over 50’s. They have over two millions customers with industry
recognition for their products and services. One Family is also owned by their
customers, and as such focuses on reinvesting their profits to the benefit of
customers, not shareholders.
What types of life insurance does One Family Life offer?
One Family Life offers a fixed level life insurance policy with set premiums and
a fixed payout from the beginning of your policy to the end:
Level Term Cover
- One Family Life’s life insurance product is a level term whole of life
cover. This means the payout is fixed from the beginning to the end of the
policy. That being the case, a £10,000 lump-sum purchased at the start of the
policy will be what beneficiaries can claim at the end. This also means there
are no maximum claimant ages, and you will have coverage for the entirety of
your life.
One Family Life Insurance Product Offering
| Name | Age Range at Application | Cover Range | Terms | Pays Out | Joint Cover |
| Over 50’s Life Cover | 50 – 80 | £480 – £19,382 dependent on smoker status and age | Whole Life Cover | If you die or get a terminal illness (terms and conditions apply) | No, but you can make sure each of you is covered by each taking out an Over 50s life cover policy. |
Life Insurance Features
We compare plans from the leading life insurance providers
- Pays out on death, with cash lump sum payable where death occurs after the
policy has been in force for at least two years - Terminal illness benefit: 100% of the life cover payout, less any serious
illness benefit already paid, may be claimed if you are diagnosed with a
terminal illness, have less than 12 months to live and long as the policy has
been in force for at least two years - Serious illness benefit: 20% of the life cover where serious illness has
been diagnosed after the policy has been in force for two years (this
benefit can only be used once). - One policy type available: Over 50’s Life Cover
- Guaranteed premiums: your monthly premiums are fixed over time for security
and peace of mind so that you won’t have any surprise increases. - guaranteed acceptance without a medical, provided you are a UK resident aged
between 50-80
Additional Benefits
- One Family Life Insurance offers an additional funding amount for your
funeral, provided by Golden Charter. This benefit includes a £300 contribution
from their appointed funeral director towards the cost of your funeral. This is
automatically included with your policy - accidental death benefit: if, within the first two years, you die as a
result of an accident, the policy will pay a cash lump sum to your estate triple
of the sum assured, subject to a maximum payout of £48,000 - non-accidental death benefit: If you die within the first two years other
than by accident, your estate will receive 150% of the premiums paid - Free cover after the age of 90: from the policy anniversary following your
90th birthday, premiums are no longer payable and your cover continues for life
Coverage Summary
Minimum Coverage Limits
- £480
Maximum Coverage Limits
- £19,382
Entry Ages
- Minimum age 50, maximum age 80
- Maximum Term: whole-of-life coverage
Why Might One Family Not Payout?
- In the first twenty-four months, full payout will only be paid in the event
of accidental death (if death is the result of an accident, then the benefit
payout will be three times your originally purchased benefit). If you die within
the first two years other than by accident, your estate will receive 150% of the
premiums paid. - Failure to provide accurate policyholder details given at time of
application, such a date of birth - Missing scheduled premium payments: if you stop paying your premiums for any
reason before your 90th birthday, your policy will be cancelled, and you will
not get any money back.
Defaqto Rating 2020
Five stars (out of five): this product provides one of the highest quality
offerings in the market.
Advantages
- As long as you are a UK resident aged 50-80 you have a guaranteed acceptance
- No need to have a medical on application, or an extensive personal history
on your health and lifestyle required - Whole life cover: some other insurance policies will only cover up until a
certain again, for example to 80 years old. One Family looks to cover its
policyholders for the entirety of their lives - At 90 years old, whilst you no longer have to pay any monthly premiums, your
cover will continue for the rest of your life - One Family offers a Serious Illness benefit which does not come as standard
with every Life Insurance policy. This means that in the event of diagnosis of a
serious illness (as per policy wording), you will receive 20% of your full
payout amount. - Fully covered by the Financial Services Compensation Scheme, which, in the
event One Family is unable to fulfil policy obligations out of insolvency or
credit default, will pay customers compensation so that they do not lose any
money
Disadvantages
- Fixed premium cover means that the value of your policy payout will reduce
over time with inflation. This could result in the value of your payout being
less than the values of your premiums paid in - Maximum limits of £19,000 which for some is not enough to keep their family
financially secure in the event of their death - If Serious Illness Benefit is paid out, this will reduce the value of your
Life cover by the amount of Serious Illness Benefit paid - Age restrictions with minimum age being 50 years old
- Cash lump sum will be payable to your estate, and so could be subject to
inheritance tax