Over 50 life insurance

A key benefit of an over 50s plan is no medical information is required to secure cover.

The guaranteed acceptance for 50-85-year-olds means those suffering with their health can still obtain life cover. Even if they have been declined elsewhere.

The lack of medical information required also makes the over 50 application quick and simple.

Whether or not an over 50s plan is cost-effective is likely to depend largely on your age and health.

Generally speaking, over 50 life insurance is more expensive than other policy types with a comparable sum assured.

This is because insurers calculate the cost of your premiums based on the likelihood of a claim.

Due to the lack of medical information, it is impossible for insurers to assess this risk accurately. As a result, the risk is offset by hiked premiums.

This may benefit you if you are older or in poor health, as declaring your well being could increase traditional life insurance premiums to such an extent it becomes unaffordable.

In contrast, those at the opposite end of the scale may be paying inflated over 50s premiums when they could be benefiting from their good health and younger age.

However, those in the first instance need not worry as over 50s cover is available from as little as 20p-a-day.

Whilst acceptance for an over 50s plan is guaranteed, insurers mitigate their risk by implementing a waiting period

This is a set period of time at the beginning of the policy where, if you die of natural causes, a pay out is not issued.

The waiting (or qualifying) period varies between insurers but is usually 12 or 24 months.

If you were to die within this period due to natural occurrences, any premiums paid will be refunded.

In some instances, life insurers will also offer a token pay out, (e.g. 50% of premiums paid).

During this waiting period, most policies do exercise full accidental death protection.

This means, if you were to die from an accident or unforeseen circumstances, a full pay out will be made.

Over 50 life insurance is commonly taken out as a means of paying for your funeral.

Choosing between over 50 life insurance or a funeral plan will depend on what you are looking to cover.

An over 50s pay out can be used for whatever your beneficiaries see fit; your funeral, future living costs, a nest egg etc.

Whereas a funeral plan can only be used to cover the cost of your funeral.

It covers the funeral director costs and, in some instances, third-party fees, (such as minister fees, cremation fees etc.)

The key benefit of a funeral plan is that it allows you to lock in your funeral director costs at today’s rate, avoiding further cost rises.

Whilst an over 50 plan pay out can be used towards your funeral, whether it provides sufficient funds to cover all costs depends on how much cover you have.

On the other hand, some funeral plans only cover funeral director costs and not third-party fees.

This means that whilst your funeral directors fees have been secured at today's costs, your family are required to cover the rest.

In this instance, an over 50s plan may be more beneficial if the sum assured is sufficient to cover all expenses.

At Reassured, we offer funeral plans which cover all third-party fees, meaning that if you are only looking to cover funeral costs, this option is likely to be more beneficial.

Like an over 50s plan, whole of life insurance is a form of life assurance.

This means that cover lasts for life and your loved ones are guaranteed a pay out.

The key difference between whole of life and over 50s, however, is the medical information required at the point of application.

Unlike an over 50s plan, whole of life insurance takes into account all of your medical information.

Therefore, those in poorer health could end up paying significantly higher premiums if they were to take out a whole of life policy.

Whereas, younger and healthier applicants are likely to benefit from lower premiums as risk can be accurately assessed.

Another thing to consider when choosing between these two policy types is the amount of cover you are looking to obtain.

Generally speaking, the sum assured available with an over 50s plan is significantly lower than that of a whole of life policy.

Therefore, if you are looking for a significant amount of cover, an over 50s plan may not be suitable.

With both policy types, it is possible to pay more into your policy than the sum assured, depending on how long you live.

However, some over 50s plans come with an age at which you cease making premium payments, (although your cover continues for life).

This is often the policy anniversary after your 90th birthday or 30 years after the start of the policy.

Many insurers offer a free gift as an incentive to take out cover.

Often this takes the form of a £50 or £75 Amazon/M&S voucher.

However, the value of a free gift versus the premiums paid over the term of the policy is insignificant.

Whilst a free gift is nice in the short-term, the most important thing long-term is to secure the right policy, at the best price.

Like traditional life insurance, it is possible to have multiple over 50 life insurance policies.

The sum assured for over 50s plans tends to be much smaller than term-based or whole of life policies.

As a result, you may require multiple policies to ensure you have enough coverage to meet your needs.

Insurers tend to have an upper limit which they will cover you for, whether this is from one or multiple policies.

Therefore, if you are looking to exceed this amount, you may have to take out policies with different insurers.

As previously mentioned, over 50s plans tend to be more expensive than standard cover.

So, when considering taking out more than one policy, establish whether this is a cost-effective option.

Many over 50s plans now come with the chance to select a funeral benefit option.

It is very common for the proceeds from over 50 life insurance to be used to fund your funeral.

Therefore, you can choose for the policy pay out to go directly to a funeral director.

The particular funeral director is usually specified by the insurer with whom you arrange your plan.

The funeral director will then work with your loved ones to plan your ceremony.

If you choose this option, it is important to read the terms and conditions associated with your particular plan.

Usually, if the sum assured is not sufficient to cover the cost of your funeral, the balance will be requested from your loved ones, whilst any excess is gifted back to them.

This option is also likely to result in some form of a discount from the funeral director, such as 10% off or a gifted bonus.

If it is purely your funeral you are looking to cover, you may find it more beneficial to take out a prepaid funeral plan.

Writing your life insurance in trust does not have to be complicated.

It simply involves filling in an application form, provided to you by the insurer.

Alternatively, at Reassured, we offer a dedicated free trust writing advice service, where our trained staff can guide you through the process.

We offer step-by-step guidance, ensuring your form is filled in accurately and fulfilling your wishes.

When the day comes, accepting the loss of a loved one is never easy.

At Reassured we do everything possible to offer our utmost support to your loved ones at this time.

Over 50s plans are renowned for a fast pay out, alleviating the financial stress on your family at an already difficult time.

A simple call to Reassured and we will guide your loved ones through the claims process.

Ensuring they have all the information they need to claim on your policy.