Over 50 Life Insurance Information and Tips
Over 50 life insurance is intended for individuals aged fifty and older who want to safeguard their family in the event of their death. Unsettled mortgages and loans, income from work or funeral expenditures are all types of liabilities or financial loss that can result in hardship for dependants should the main income earner die.
Life insurance could be more costly for the over 50s and some constraints on the period of coverage may apply but this should be offset against the prospect of leaving dependants to repay debts in the event of the main income earner’s death. Otherwise life insurance for over 50s is the same as normal cover.
A number of insurance providers have over 50 insurance policies without the need for a medical examination but you can expect to pay larger premiums as a result.
Life insurance is divided into two main policy types, term insurance and whole of life insurance.
Term life insurance is a cheap option in most cases and will pay out if the policy holder dies before an agreed period of time has expired. If the policy holder survives the agreed time period, known as the term, then the policy expires and no payment is made.
Whole of life insurance, also known as investment life insurance, covers you for your entire life provided you keep paying the insurance premiums. Typically the premiums are invested in the financial markets with the aim of achieving growth over time. Therefore the longer you live the larger the payout on your death although you will also have paid more in premiums.
Premiums for both types of policy are paid either monthly or annually and the premium can be fixed for the duration of the policy or can be reviewed should your circumstances or requirements change.
You can also purchase life insurance to cover outstanding mortgages or loans should you die before they are repaid. This is similar to term life insurance except the amount of cover reduces over the duration of the term to match the outstanding amount of the mortgage or loan that is insured. If you survive the term no pay out is made.
How To Buy Over 50 Life Insurance
When comparing or buying life insurance you should shop around to find the best premium and should also ensure the policy covers your requirements. There are many types of policy available and you need to make sure you fully understand what each policy covers, what administrative charges apply, how risky an investment policy might be, how much flexibility exists in the premium schedule and the return you can expect.
Over 50s insurance cover or specialised policies for those with pre-existing medical conditions are two cases where you may need to hunt around extensively before finding the right deal.
In all but the most straightforward cases it is best to seek advice from an independent financial advisor before purchasing a life insurance policy. Make sure the advisor you choose is regulated by the Financial Services Authority (FSA). FSA regulated insurance advisors are compelled by law to provide you with easy to understand documentation so you are fully aware of the terms of the policy and any exclusions before you buy.
For simple term insurance is usually okay to use a comparison service to find the cheapest premium. Because the term and premium is fixed and the condition of pay out is your death it becomes a simple case of cheapest is best. But if your requirements or circumstances are more complicated it is better to speak to an impartial expert.
To find a life insurance comparison web site or an insurance advisor online you can use Google to search for words such as “life insurance compare” or “over 50 life insurance”.
This article is for informational purposes only. You should seek advice from a qualified and authorised insurance advisor before purchasing any financial product or service.
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