You're only as old as you feel, life begins at 60 and age is just a number! While it's clear that our later years are often some of the busiest and happiest of our lives, it pays to be mindful of the future. You will more than likely have seen adverts for over 50s life insurance plans everywhere on television. In this guide we'll break down the type of cover these plans offer, what to look out for in potential plans, and whether you could qualify for this type of cover.
What is over 50s life insurance?
Over 50s life insurance is a type of life insurance policy designed to be taken out later in life, usually by those in the 50-80 age bracket. The pay out from these policies comes in a lump sum when you pass away, and can therefore be used to cover various financial commitments or funeral expenses, or as a form of trust or inheritance.
Some people choose to take out over 50s life insurance to cover any outstanding debts they may have, so as to not burden their relatives.
Cover for life
Over-50s life insurance policies offer whole-of-life cover, which means that, subject to a qualification period, you'll be covered from the start of the policy until you die. This is different to term life insurance, which will only pay out if you die within a set period.
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Guaranteed acceptance for over 50s
Over 50s life insurance is popular in the UK. One of the main reasons for this popularity is the fact that (subject to a qualification period) you are guaranteed to be accepted for cover, which isn’t the case with some standard life insurance policies.
This kind of guarantee can be a tonic to those who are of uncertain health, or with a history of family medical issues.
Over 50s life cover qualification period
Over-50s life cover is subject to a qualification period or moratorium. This means that for a certain period after you take out the policy (usually 1-2 years), your dependents would not receive the full pay-out if you died. During the qualification period, any pay-out that does get made would be proportionate to the amount you’ve already paid into the policy. If you pass away after the qualification period, the full amount would be paid out.
How much does over 50s life insurance cost?
Policies range in cost, depending on various factors including:
- Your medical history
- The size of the pay-out you want
- Your age
- Your lifestyle
To find out how much you’d pay given your own circumstances, use our free comparison tool.
Fixed monthly payments are common
The monthly premium you pay each month will be fixed throughout your policy. It is important for you to be able to plan for the future for you and your family and budgeting is an essential part of this. Having a set amount to pay each month can make it easier to keep up with payments and keep account of all your spending.
What will my policy cover?
Over 50s life insurance policies are often advertised as a way to cover funeral costs. With funeral costs rising year on year from a not insignificant base line, a pay-out to help cover them can make a huge difference.
Equally, the lump sum pay-out can be used as a broader kind of inheritance, providing extra financial help to your loved ones or dependents when you pass away. Ultimately, how the money is used is up to the beneficiaries of the policy, but it’s a good idea to think about what you’d want it to be used for when assessing how much cover you want to take out.