Over 50s Insurance
Reaching the age of 50 is a significant milestone in life, a milestone that some people dread and others relish. Becoming older and wiser comes with its pluses and minuses, but ensuring you have life insurance is particularly important when you hit the big five zero. Insurance providers have recognised that hitting 50 deserves its own policy – known as over 50s life insurance.
You’re probably thinking, ‘another type of life insurance?’ and yes, there are lots of different life insurance policies on the market, but that’s because no two people are the same, we are all individuals and we have different requirements – there is no one-size-fits-all policy when it comes to life insurance.
What is Over 50s Life Insurance?
When you hit 50, it’s likely your priorities will have changed. If you have children it’s likely they are older and are starting to flee the nest to lead their own lives. Therefore, the life insurance you require will probably be different to those that are turning 30 with young children and a new mortgage.
Over 50s life insurance is usually taken out between the ages of 50 and 80 and much like general life insurance cover, you will pay monthly instalments and in the event of your death, your family will receive a lump sum payout. The lump sum can be used at your family’s discretion, perhaps it will be put towards funeral costs, or it may be used to keep on top of the household bills.
What Are The Benefits of Over 50s Life Insurance?
From what you’ve read so far, over 50s life insurance may not seem any different to standard life insurance cover but there are some distinct differences that make this policy stand out.
Guaranteed acceptance – with over 50s life insurance, you can have piece of mind that you will be accepted, regardless of your current health and lifestyle as unlike some life insurance policies, you do not have to undergo a health questionnaire.
Guaranteed payout – the payout you receive if the worst was to happen is guaranteed so long as you have paid into the policy for a certain period of time (usually around two years).
Fixed premiums – when you take out over 50s life insurance you do not have to worry about increasing or varying monthly premiums. Usually, the premiums are fixed so you know exactly what you will be paying each month.
How Much Does Over 50s Life Insurance Cost?
Like most forms of insurance, your personal cost will depend on the type of cover you go for. With over 50s life insurance, the amount you pay in each month determines the amount your family will receive via the lump sum payment. So the more you pay in initially, the better your family will come off.
It’s important to note that if you miss any payments, your policy ends immediately and you will no longer be covered. It’s also likely that you will not get any of the money back that you paid in before your policy ended, so it’s important to keep on top of your payments. It’s also really important that you can afford the financial commitment before you sign on the dotted line as if you fail to keep the payments up, you will essentially be throwing money down the drain.
As mentioned previously, insurers will expect you to have paid into the policy for a minimum of two years until your family can receive the full lump sum payments. This means that if you die during the first few years of the policy, your family may only receive a sum equivalent to what you have paid up to that point.
Is Over 50s Life Insurance For You?
Deciding whether over 50s life insurance fits your needs is something that is down to you, but if you are over the age of 50 and are struggling to get accepted for traditional life cover or, you are keen for your lump sum payment to be guaranteed, then it may be a good route to go down.