This insurance policy are popular with older people. Although often marketed as over 50s plans, the average age of buyers tends to be around 65. With the recent outbreak of the corona virus were Families has to bury their loved ones very fast people should now start thinking of taking this cover as it will not be possible to raise cash for burial as it has happened before.
They usually offer low sums assured and premiums together with simplified underwriting. There is normally a moratorium period, typically 1 or 3 months from commencement, when normal death claims are not paid but Accidental death claims are paid.
In some cases, insurers may pay in this period if the life assured died in an accident. Although such policies may not offer great value, their simplicity and guaranteed acceptance can appeal to people who want cover just to pay for their funeral. Many have premiums limited to a particular age.
