Age Concern has teamed up with BF&M to provide a life insurance policy for seniors to spare their loved ones financial strain when they die.

The Peace of Mind policy, which will be available through Age Concern from July 4, does not require any medical examinations.

Covering persons aged from 50 to 80 years old, it provides up to $25,000 that can be used for funeral costs, final expenses or simply a gift to loved ones.

It is believed to be the first product of its kind in Bermuda, since it guarantees acceptance.

According to Claudette Fleming, executive director of Age Concern, many families experience problems dealing with the costly aftermath of the death of a loved one.

"We see a lot of fighting going in families at this stage over assets and I'm sure funeral homes can attest to the fact that, as a result, they can be left out of pocket," she said. "With this policy, that expense is provided for for service providers and family members."

Premiums will vary according to gender and the value of the policy. However, Brian Popp, vice president of customer relations and sales at BF&M, said for a $10,000 policy for a 64-year-old woman the average monthly payment would be around $100 per month.

Policy holders can choose to make payments for a fixed term of either three or five years, with full benefits available after the first two years.

BF&M president and chief executive officer John Wight said: "We are pleased that we are able to partner with Age Concern to help them link our senior population to resources that meet their needs.

"BF&M hopes this product will empower the mature segment of our population with the ability to proactively protect their loved ones while enjoying what should be the best time in their life."