Over 50 plans provide cover for a specified sum assured, (pay out amount). Acceptance is guaranteed and no medical information is required for UK applicants aged 50-85.
An over 50s plan lasts for the rest of your life, assuming you pay your premiums, making it a form of life assurance.
This means that a pay out is guaranteed when you pass away, rather than if you pass away.
The cost of your premiums aren't calculated using any medical information, just your age and smoking status.
At the age of 70, it's likely your premiums will be more expensive, so it's important to consider your budget and whether you can afford the ongoing payments, especially once retired.
With a number of over 50 plans, once you reach aged 90 or 30 years after the start of the policy, premiums cease but cover remains in place.
Therefore, it's important to consider the cost of your premiums and the time until you reach 90, as it's possible you could pay more into the plan than the sum assured.
An over 50s plan waiting period
Over 50 plans employ a waiting period at the beginning of the policy, which lasts 12 or 24 months.
This is sometimes referred to by insurers as the qualifying period.
This means, if you pass away due to natural causes during this initial period, a pay out won't be made, (although the premiums paid will be returned).
However, death caused as a result of an accident is still eligible for a claim.
Key benefit: You're guaranteed acceptance if aged 50-85 and there are no health questions or medical exam.