Over 50s life insurance is fairly straight forward, but there are some intricacies that should be explained before you commit to a policy.
If you are aged between 50 and 80 in the UK, you are generally eligible for over 50s cover. In the event of death, your beneficiaries will receive a lump sum to help with funeral costs and any other administrative fees that may occur.
Over 50s cover is fairly similar to:
- Whole of Life Cover – as it does cover you for the rest of your life and, therefore, guarantees a pay out for your beneficiaries. The main difference is the required age bracket and the relative ease in terms of medical questions at the application stage
Not to be confused with:
- Term Insurance – as the cover does not end and there is no chance that you could never receive a pay-out from the insurer
- Critical Illness Insurance – as the pay-out is only offered after the loss of the insured
- Income Protection – as the amount that is paid out is dependent on how much is paid in and for how long, in an accumulative manner, and not on how much you earn
- Mortgage Life Insurance – as the money will go straight to your beneficiaries not the lender
- Mortgage Payment Protection Insurance – again the money is only paid out after death and is paid to your family or beneficiaries, not lenders.
- Most over 50s plans are comparatively cheap and, therefore, accessible to most applicants
- There are not usually any health questions asked when you take out over 50s life insurance and if you are within the required age bracket you are usually guaranteed to be granted a policy
- You can rest assured your family or loved ones will be looked after financially after your loss. The money you have accumulated throughout your plan will be given straight to them
Remember, many different companies will offer different prices and there may be slight differences in policy from insurer to insurer. If you are still confused about anything to do with over 50s life insurance, please get in touch – our specially trained advisors are happy to help.