“Scottish Friendly” is a mutual investment and life insurance company that is headquartered in Glasgow, Scotland. “Scottish Friendly” was founded in 1862 and has over 150 years of experience. The group manages over £8 million in assets and has over 400 000 members. Since the company has no shareholders all profits of the company is distributed back to the shareholders. When the person starts putting money into “Scottish Friendly” investment plan or buys an insurance cover, he immediately becomes the member of the society and as a result can benefit from all the profits that the company earns. At the moment the company has three divisions that provide different services: asset management division, a trustee company and division of life insurance. “Scottish Friendly” offers two types of services: over 50s plan and term assurance plan.
Term insurance provided by “Scottish Friendly” includes two covers: life and critical illness. The person has to pay regular monthly payments each month in order to purchase term insurance contract. As a result, if the insured person dies or is diagnosed with terminal illness with life expectancy of less than 12 months, his family or other dependents will be given a lump sum of money. However, the terminal illness has to be diagnosed prior to the 18 last months of the policy. The maximum level of cover offered by “Scottish Friendly” is £200,000. In order to apply for this life insurance product, the individual has to be aged between 18 and 69 and be a resident of United Kingdom. The person can choose the amount of cover and the length of the contract. When the contract is underwritten the premiums are fixed for all term of the contract.
Before signing the contract the person has to provide the company with all useful information that will help the underwriters to set the appropriate price of the premiums. The company also requires all medical records and other information of the potential client. “Scottish Friendly” also requires people to give them all the details about any changes in personal health, family history, occupation, participation in any hazardous hobbies, travel and residence before the terms of the contract are agreed. The policy has no cash-in value and at the end of the contract the policy simply ends if the individual does not make a claim.
This life insurance plan was designed by “Scottish Friendly” for older people that do not have life insurance cover. The plan accepts people that are aged from 50 to 75 and are residents of United Kingdom. This is a simple way to leave the family with a lump cash sum after the death. The lump cash sum will be paid out after two years’ payments have been made. If the individual dies sooner, his dependents will receive only the payments that have been made. However, if the death was caused by other than natural causes, the dependents will be given a lump cash sum. In order to investigate whether the death was accidental or caused by natural health issues, the insurance company can contact the doctor and ask for his opinion. Accidental death is defined as an unexpected or unforeseen event that occurred during the time of the insurance contract. The person has to pay the premiums up to the age of 85. After that the insurance contract remains in force even if the person does not pay the premiums.
The lowest possible amount of monthly premiums is £8 and the maximum amount of monthly premiums is £50. The company guarantees that the premiums will never go up and that the cover will never decrease. The policy has no cash value at any time and if the person stops paying the premiums, the cover will simply be canceled.
The cover of over 50s life insurance plan can be used to cover the living expenses. The payout is simply nominated to “Golden Charter” that is a leading independent funeral plan provider. In this situation, after the death of the person “Golden Charter” takes care of all funeral expenses and even adds £200 more to the funeral expenses of the person.
The cover of over 50s life insurance offered by “Scottish Friendly” depends on the 4 factors: the amount of cover chosen, the sex of the person, the smoking status of the individual and the age. The total maximum cover of this life insurance product is £25000. If a person decides that he needs more cover, he can purchase additional amount of cover. However, the total amount cannot exceed the total maximum amount. The contract can only be written on a single life basis.