Why you might need a Specialist over 50 Life Insurance Product

If you aged 50 or over, then there could be any number of reasons why you may wish to consider an over 50s life insurance product.
So you can see if this type of specialist cover is relevant to your circumstances, here is a brief overview of what the product is typically designed to do.

What does it cover?
These plans provide people aged 50 and above with life insurance that typically pays out upon their death.
The difference with these plans compared to traditional life insurance policies is that there are no health questions asked and so your acceptance is guaranteed regardless of your health.
The sum insured (ie. the amount that your loved ones will receive upon your death) is often lower than with the more traditional life insurance cover as a result of “no health questions asked”, so if you are in good health it’s always worth exploring whether you could get more cover with a traditional plan.
Over 50s policies are often called funeral insurance, as many people use these policies to cover the costs associated with their passing and so take any financial burden away from those they leave behind. The average cost of a funeral in the UK is around £3,500, so costs will vary depending on where you live.
Of course, you may just wish to leave your loved ones a gift when you die – so the cash amount can be used for that. Or, may be to tie up any loose ends, such as paying off any bills.
How else are over 50 plans different to traditional life insurance?
With these funeral  / over 50s insurance plans, you can benefit from:

• No need to answer a medical questionnaire or answer questions about your health;
• Guaranteed acceptance even if you have been refused life cover elsewhere and would like to at least have your funeral costs covered when you die;
• Affordable monthly premiums from around £10 a month);
• Joining up at any age between 50 and 80 years old;
• The peace of mind of knowing that you are making things easier for your loved ones, financially, when you die.

What else should you consider?
Over 50s life insurance policies are a way of getting a fixed sum insured upon your death. When considering this cover, note that:

• Most policies have to be in force for a minimum of 2 years before they will pay out (though this could be just 12 months with some providers). If you die within that period, then your family will typically get the premiums refunded;
• You have to pay in to the plan until you are aged 90 (or until your death with some insurers). After this time, you will not have to pay in any more and the cover will remain in place;
• If you stop paying the premiums before this time, you will not get any money back, and the cover will lapse;
• Following on from the above point, depending on your age and how many years you are paying in to the plan, you could actually pay in more than your loved ones will receive upon your death.

Over 50 life insurance plans can be a way to make sure that your family are not left with bills after your death. Alternatively, if funeral costs are a worry, then you may wish to consider over 50s insurance that offer a funeral benefit option.  To find out more, you may wish to carry out an over 50s life insurance comparison.
While terms and features vary depending on the cover provider, with this option, you can agree for the monies to be paid directly to a specified funeral director, rather than your estate. Typically, an additional amount of £250 or with some plans a percentage of your cash sum assured usually 10%, may be made towards your funeral directors costs
In summary, there are a number of options available for as you enter your sixth decade and beyond. Finding out more may be your next step.