Why Choose Over 50s Life Insurance?
If you’re over 50 and concerned you can’t get covered for life insurance, then you’ve come to the right place. The money paid as a cash lump sum, can be used for anything such as funeral costs, to pay off outstanding debts or to leave a gift to your loved ones.
Can I get over 50s life insurance?
The main advantage of over 50s cover is that acceptance is guaranteed. If you’re aged between 50-85 then many of the big insurers will offer over 50s plans. You won’t need to answer any health questions or have a medical, so if you have pre-existing medical conditions or ill health you’re still guaranteed to be accepted.
How much is it likely to cost?
You will pay in regular monthly instalments and the insurer will pay out a cash sum when you die. Life insurance for over 50s usually comes with fixed premiums. You can choose a premium that suits your budget or desired payout amount, and this means the price will stay the same. You can choose from a range of premiums – varying from a minimum of £1,000 to £25,000 maximum. Cover can start from just £4 a month. You must keep up with the monthly payments or the cover will cease, and there will be no pay-out to your family, upon you’re passing.
How long can cover last?
Over 50s is unique in that it pays out when you pass away. There is no term, it essentially covers you for the inevitable – whenever that may be. However, cover may not be immediate, with some providers there is a waiting period of 1-2 years before the full cover amount will be paid out. If you die during this time, some providers will pay the total of the premiums you have already paid into the policy but no more than this. If you die as the result of an accident, the full cover amount is usually paid out. When getting a plan in place make sure you know the terms!
What is increasing benefit?
The insurer may ask if you want cover with increasing life insurance. This is where the amount of any pay-out and your premiums are reviewed each year, in line with inflation. This means that the payout will be worth the same amount in say 20 years time. The insurer will ask you if you would like to take this option, and they will write to you every year. Ask your insurer or life insurance broker for guidance on this if you’re unsure.
What does ‘policy in trust’ mean?
Your beneficiaries could be liable for inheritance tax on the proceeds of your life insurance policy, at 40%. By writing your policy ‘in trust’, the payout will remain outside of your estate and the beneficiaries will receive the full amount, tax free, as you planned.
Find the best cover
The way to find the best cover is to compare quotes. An easy way to do this is to use a broker that can search many insurance providers for you. This way, you don’t have to make multiple calls and juggle various quotes yourself. Also, a specialist will be able to answer questions and explain any terms you might be unsure of.
The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of So Smart Protect or So Smart Financial Services.