Over 50's Life Insurance
Unlike regular life insurance, an over 50’s life insurance plan is slightly different. The main way it differs is due to the fact that there are no medical questions or evidence needed for the application. It is a guaranteed acceptance policy, and anyone who is over 50 can take out a policy.
Unfortunately, the amount of cover available to you with an over 50’s plan is significantly less than a regular life insurance policy; and the older you are the less cover is available to you. You may also have a reduced cover amount available to you if you are a smoker. Furthering this, premiums for an over 50’s plan can be expensive in comparison to the level of cover available to you; this is due to your age and the fact that the policy is guaranteed to pay out. Another reason that there is a limited amount of cover available is due to the fact that over 50’s plans are designed to act as funeral cover; therefore if you needed more cover for another reason e.g. mortgage you may want to consider taking out a regular life insurance policy.
If you have a pre-existing medical condition and are aged 50 or over, it is highly likely that your premiums would be more expensive than standard rates, and it is even possible that your application would be declined depending on the severity of your condition, and therefore, an over 50’s plan would be a better option for you.
An over 50’s plan is also suitable if you’re are aged 50 or over and do not wish to discuss your personal health. Due to the fact that over 50’s plans do not require any medical evidence, and therefore your privacy would be respected.
If you are over 50, this does not mean that you can only get an over 50’s plan, there are also other life insurance products available.
There are two main types of life insurance that you could take out if an over 50’s plan isn’t suitable for you; term life insurance or whole of life insurance.
Term life insurance
Term life insurance is where your policy covers you for a certain term, or length of time i.e. 20 years. If you were to pass away within this term, then your policy would pay out. This type of cover is not always guaranteed to pay out as it is impossible to guess when you will pass away, so if you live beyond the term of the policy it would not pay out, however it is cheaper than a whole of life policy. Furthering this, there are two types of term insurance available; level and decreasing cover. Level cover is where the amount of cover you take out at the beginning of your policy is how much would pay out if you were to pass away within the term. However, with decreasing life insurance the amount of cover that would pay out if you were to pass away within the term decreases each year, this may seem like a downside however this type of cover is suitable for mortgage cover and is also cheaper than level life insurance.
Whole of life insurance
This type of life insurance isn’t restricted to a certain term, this covers you for your whole life until you pass away, therefore it is guaranteed to pay out. This is a more secure form of cover however due to the fact that it is guaranteed to pay out this means that it is more expensive than term life insurance, especially if you are older or require a large amount of cover.
Both forms of life insurance have their pros and cons, therefore it is important to pick the cover that is best for you, your family and your budget.
It is also important to take into consideration any pre-existing medical conditions you have, as depending on your condition, you could be subject to higher premiums. Moreover, if your condition is severe there is also a chance of your application being declined.
Critical Illness Cover
Another form of life insurance that may be suitable for you is critical illness cover. This is a policy that pays out a lump sum if you are diagnosed with a critical illness. The definition of a critical illness varies with each provider so it’s important to check what you are covered for. Critical illness cover will potentially exclude certain conditions from your cover depending on any pre-existing medical conditions that you have. It is important to remember that the older you are, the more difficult it is to get a critical illness policy and you should also expect to pay higher premiums. Furthering this, once you reach a certain age (differs with each provider) then critical illness cover is unavailable to you.
There are also other lesser known life insurance products available to you, each with their own benefits. It is important to choose the right insurance product for your personal circumstances as well as your budget. It is also important to bear in mind that as you get older, the cover available to you may reduce, or your premiums will rise, however our expert advisors will always help you to get the best cover for you.
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