Normal life insurance premiums increase drastically with time. So, if you are looking to opt for life insurance later in life then Over 50s Life Insurance is an excellent alternative. Normally after the 50-years mark, the remaining lifespan can be unpredictable. Therefore it is advisable to opt for life insurance in order to not leave your family in a financial crunch after your death. If you are the only breadwinner of your family then it becomes doubly important to insure your life.
Over 50s Life Insurance has several benefits that are not found in a traditional life insurance plans. For instance, the monthly premiums are fixed and are not liable to increase. In many cases, these premiums can start from as low as 5 pounds! And unlike other insurances, no health related or medical questions are asked when opting for Over 50s life insurance. In short, your acceptance is guaranteed if you fall in the age bracket of 50-80 years.
Payouts are usually given out in lump sum and include inflation adjustment. Many insurance providers also follow a staged process:
- If the policyholder dies within the first year of insurance from an accident, the insured sum is paid.
- If another cause contributes towards the death of the policyholder in the first year then a payout equal to the premium paid will be issued.
- If the cause of death is accident, after the first year, double the amount insured is paid.
- Similarly, other cause of deaths after the first year yield the insured amount as payout.
Normally, Over 50s Life Insurance provides an option to cover funeral expenses as well. This is beneficial since the cost of a funeral is increasing quite rapidly in the United Kingdom. Funerals that involve burial and cremation are expected to cost GBP 8500 and 6500 in 2043, respectively. This can be quite a burden for your loved ones. So, it is advisable to opt for funeral expense coverage.
It is also a good idea to opt for the maximum pay out, which can normally be GBP 25,000. This is so because the effects of inflation erode the value of this sum. Furthermore, you might end up paying more in premiums than the insured amount if you live long enough.
A thing of note when opting for Over 50s Life Insurance is your ability to cope with the financial burden. You may retire down the line and find it difficult to pay monthly premiums. As a result your policy would expire. In short, it has no cash-in value so giving up on premiums would render it worthless.
Also, you wouldn’t want taxation to eat into the payout of your insurance. Therefore it is advisable to write your policy in trust to avoid the lofty inheritance tax.
In conclusion, Over 50s Life Insurance is an effective insurance plan for older people looking for life insurance. It can aid your loved ones in taking care of your funeral. It would also give you an option to leave a little gift behind for the people you care.