Standard life insurance policies can quickly get very expensive once you’re over the age of 50. Monthly premiums will increase significantly the older you get and there are likely to be specific conditions that you need to meet in order to get the cover you need.
Dedicated life insurance policies for over-50s can help here. By the time you've hit 50, what you require from a life insurance policy will (generally) be different to what you needed a decade or more ago. If you no longer have children who are dependent on you and you aren’t paying off any debts, then it is unlikely that you will be looking for the same thing. Over-50s life insurance offers you options that are tailored specifically for your age bracket.
What is different about over-50s life insurance?
Your insurer should only have to confirm that you are between 50 and 80 years old. Other than that, securing your life insurance should be easy. The biggest advantage of over-50s life insurance is that it is guaranteed. You shouldn’t have to provide any medical history or have any medical checks to be accepted by the provider. There won’t be any uncomfortable questions so the application process should be hassle-free.
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.
Evaluate your financial situation. Work out how much you are able to spend per month and then compare life insurance
policies to figure out which one will suit you the best.
Cover for life
Unlike a term life insurance, over-50s policies will last until you die so the payout is guaranteed. It is unlikely you will receive the full payout if you have been paying premiums for less than 1-2 years but after this point, you can expect the full payout.
If you die in this deferred period, usually around 1-2 years after the start of your policy, the amount you receive as a payout will vary. It will usually depend on how much you have already paid in premiums. If you are worried that this will not be enough then check the details of the deferred period for different insurance providers and compare them to see which one offers the best payout option.
Are there any limitations on over-50s insurance?
For the most part, over-50s policies come with the same caveats as any other life insurance policy. Missing monthly payments can invalidate your policy, and your payout may not increase with inflation, for example.
Where over-50s policies do differ is, typically, in the final size of the payout. You usually won't get as much paid out as you would with a more standard policy, partly because of the higher risk that the insurer is taking on. However, you 'llknow exactly how much you are getting when you set your policy up.