Taking out a life insurance policy can be confusing, especially when you’re unsure which is the best for you. A lot of people are unsure on how much it should cost them. Is the cheapest cover the best? Is the most expensive cover the best? What is the difference between a ‘normal’ life insurance policy and an Over 50s life insurance policy? Everyone’s circumstances are different, so the best option for one person may be completely different for you. Our handy infographic should give you an overview of exactly where to start when taking out an Over 50s life insurance policy. Over 50s life insurance covers you from the age of 50 until you pass away, provided that you pay your monthly premium. When you pass away, your insurer will pay an agreed tax-free cash lump sum to your specified beneficiary or beneficiaries. A life insurance policy in general provides reassurance and peace of mind. You know that your loved ones will receive money when you are gone, and any outstanding debts will be taken care of for them. It’s impossible to give an estimate of premium cost without taking personal circumstances into account during the underwriting process. Everyone’s situation is different and it is important to make sure we have accurate details of your lifestyle and living arrangements. The premium cost for an Over 50s plan will be based on the age you are when you take out the policy. It is also based on how much you will be paid out at the end of the policy. If you’re deciding on what type of life insurance policy, the cost can be something a lot of people are concerned about. It is worth noting that Over 50s life insurance cover tends to be cheaper than a regular policy. The Insurance Surgery are Over 50s life insurance experts. We know which insurers to approach to find the best cover for you at the most competitive premiums. Your circumstances play a big part in it, but we know where to find the best over 50s life insurance for you.
What is covered in an Over 50s plan?
Your insurance needs can change as you become older, so an Over 50s plan could be perfect for you. It provides a lump sum to your family when you pass away. This can then cover your funeral costs, pay off your mortgage and support your spouse or children. There are many reasons why people take out an over 50s plan. It could be to help their family pay off any debts they may have, so they don’t have any financial struggles. It could be to help towards their children’s education and see them through university. University can be incredibly expensive to attend with both tuition fees and maintenance costs. Some people prefer to pay the fees for their children so that they do not have to start their working life in debt. If you are Over 50 and still have payments left on your mortgage, it can help pay that off too. Your family can then live in your home without having to worry about paying the remainder of the mortgage off. As you reach a certain age, you may take out some form of life insurance so that funeral costs are paid for. Funerals can be incredibly expensive, and a lot of people would rather the money be there to cover the cost. They often do not want their family to have to worry about paying it. The average cost of a basic funeral in 2021 has now risen to £4,184. Basic funeral costs include the fees for the cremation or burial, doctor, funeral director, and minister or celebrant. It usually includes the cost of the medical certificate needed when someone dies, but this has been temporarily suspended due to COVID-19. The total “cost of dying” these days is even higher when you include optional extras like a wake or a gathering. It is currently at an all-time high of £9,263. That is 0.8% up since the previous year, and a rise of 39% in the last decade. Over 50’s plans are suitable for people who don’t have much savings or investments to pass on to their family. However, they can afford the monthly premium. It’s also a good type of cover for people in poor health or with a medical condition. Unlike other forms of life insurance, you do not need to provide any medical evidence when applying for an Over 50s insurance plan. This means that there will be no delay with your application. You will not need a medical examination or a doctor’s report which can often take time. Cover can usually be secured relatively quickly and no medical questions will be asked.
How Does Over 50’s Life Insurance Work?
1) Your Application There are a few things that you need to take into consideration when taking out an Over 50s life insurance plan. For starters, it all depends on your age. You normally have to be aged 50 or over. Some insurers will cover you from 49 years old. Most insurers will not cover you if you are aged 80 or over, but this varies from insurer to insurer. The older you are when you take out the policy, the higher your monthly payments will be. Taking out an Over 50s life insurance plan earlier rather than later is advised as your monthly premium will be lower. The older you are when you take out the policy, the less cover is available to you. You can take out over 50’s life insurance without having a medical examination or without answering any questions regarding your health or lifestyle. An Over 50s plan tends to have guaranteed acceptance. For other types of life insurance, you may have to answer questions relating to your health or complete a medical exam. You may also have a reduced cover amount available to you if you are a smoker. 2) You pay a fixed monthly premium The monthly premium can vary from provider to provider. However the majority of Over 50s life insurance policies have a fixed rate premium. This means that the monthly premium you pay remains the same until you die (or until your 90th birthday with some providers). If you want to choose how much to leave your loved ones, we can help find you a policy that can do this. You can also look at the options of how much it will cost each month. Alternatively, you could work out what monthly premium you would be comfortable paying and see how much the pay out would be against that. The larger the pay out, the more your monthly premium will be. 3) A Guaranteed Tax-Free Lump Sum Over 50’s life insurance will pay out a tax-free lump sum when you pass away. It is paid irrespective of how long you live for and you choose the amount when you take out the cover. It is worth noting that the amount of cover you can claim will be significantly lower than what you’d get with a regular life insurance plan. The pay out amount is fixed so you know exactly how much the beneficiary (or beneficiaries) will receive when you pass. This in turn can reduce any financial pressures they may have and help them grieve rather than worry about funeral planning and debts.
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An over 50’s plan isn’t suitable for everyone. It depends on your personal circumstances, lifestyle and financial situation. However, our expert team can help you find the policy that is perfect for you. If an Over 50’s plan isn’t right for you, Term Life Insurance or Whole of Life insurance are good alternatives.
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