Over 50s Life Cover is an insurance policy that provides protection for those aged 50 or over. It is one of our most popular insurance products within Ballymena and the surrounding area.
It is a whole of life policy which means that it pays out a cash lump sum in the event of the policy holder’s death, provided the individual concerned has held the policy for two years or more – so there’s no investment risk and, as the policyholder, you always know what your family will get.
Who is Over 50s Life Cover for?
Most insurers offer Over 50s Life Cover to customers aged between 50 and 80 years old without the need for a medical report. This makes it good for anyone in this age bracket who want to leave a cash sum to their loved ones but don’t wish to provide details of their health – or for those who may have had trouble buying a policy before due to their medical history.
Provided you pay the premium agreed with your insurer for as long as the period specified, the named beneficiary will receive the money they are due in the event of your death. Take a look at our specific Mortgage Connect page to find out more detail on this >
What Is It Used For?
Money passed on through an Over 50s Life Insurance Cover policy is available to be used in various different ways. For example, the policyholder may choose to keep a certain amount of cash to help their loved ones meet the cost of their funeral or to pay off outstanding credit card bills or other debts.
Cash benefits provided to your loved ones in the event you pass away through terminal illness or an accident are also often greater than the original sum assured by the policy, provided it has been in place for two years or more.
Does My Premium Change At All?
Many providers offer policyholders the option to reduce their premiums after they have held their policy for a certain number of years. This will affect the final amount your loved ones will receive via when the times comes to claim, however. As a local financial advisor based in Ballymena we can help you navigate these various premiums and guide you towards the most suitable policy based on your exact circumstances.
It’s also worth bearing in mind that, due to inflation, the value of the cash sum paid out may be reduced depending on how long premiums are paid for. This means the total premiums paid may be greater than any benefit paid out by an Over Fifties Life Insurance policy in the long run.
It’s also vital to remember that if you stop paying your premiums before your 90th birthday or at any time before the policy ends, it’s likely your policy will be cancelled and you won’t get any of the money you have paid in back.
What are the problems with the plans I see on TV?
Some of the TV advertised Over-50s’ plans are insurance schemes, so once the money is paid in, you can’t get it back. Furthermore, miss just one payment and it’s usually game over – there’s no payout and you won’t get any cash back.
A few years ago, Watchdog made a TV programme where 84-year-old Mary Vickers had two SunLife policies with a combined total payout of £2,740 – but she had already paid in £3,700 and needed to keep on contributing £22 per month for life, as cancelling means you lose everything already put in so no payout is due. Money Saving Expert have a great article on some of the issues with the larger insurance providers here > .
Now if you miss a payment, you’ve usually up to six months to pay back all the missed premiums and the policy will start. Yet if you die after you miss a payment, then nothing is paid out. So if you’ve got one – or you’re thinking about getting one – best practice is set up a direct debit payment to make sure this doesn’t happen. Martin Lewis talks through some of these key points in the video below;
What Else Do I Need To Know Before I Buy?
Because Over 50s Life Cover is a later life policy, different insurers have different specifications when it comes to what they will and won’t pay out in the event of your death.
The majority of policies come with exclusions and limitations regarding the time frame in which your death might occur after taking out a policy, most of which are relevant to the first two years of a premium being paid. The manner in which you die can also have a bearing on the amount an insurer agrees to pay out – if you are diagnosed with a terminal illness, for example, or die through an accident. At Mortgage Connect, Ballymena we can help you navigate through these limitations and ensure you have a policy that suits you and your circumstances exactly.
If you are choosing an Over 50s Life Insurance policy to help cover the cost of your funeral, some providers may also stipulate these are covered subject to certain contributions being made by your loved ones via the appointed funeral director. Contact the premier Mortgage and Financial brokers in Ballymena today to help you through these different areas.