Naturally when we reach a certain point in life we are likely to become more concerned about what will happen to our loved ones when we are gone.
Unfortunately, when we reach the later years in life there is an increase in the likelihood of developing health issues and our life expectancy is further reduced. It’s for these reasons that that life insurance can become a costly expenditure. The older you get, the more likely you are to make a claim on your life insurance policy. In order to offset the increased risk the monthly premiums invariably increase also.
Specialist life insurance for the over 50s.
Over 50 life insurance is available to accommodate those who have left it until later in life to ensure their family are adequately protected in their absence.
Life insurance for over 50’s accommodates the issues surrounding taking out a life insurance policy later in life. As with a standard life insurance policy a lump sum will be paid out on your death. There are, however, conditions in place with an over 50’s life insurance policy to counteract the increased risk. All of which vary depending on the provider you use.
- The sum you can be insured for may have a maximum threshold considerably lower than a standard life insurance policy – usually a maximum of £20,000.
- Your policy may not pay out if a claim is made within the first 12 or 24 months.
- You may not receive your maximum amount of cover if a claim is made until 3 years after you first took out your policy.
- You don’t always have to be medically underwritten.
Reduced underwriting.
The removed need for medical underwriting is the main selling point of an over 50’s life insurance policy. What can increase the cost of a standard life insurance policy could be your health. By removing the associated costs of ill health, your life insurance could be more competitive.
If however, you are over 50 and in good health with a clean medical history, taking an over 50’s life insurance policy may not necessarily be the best option. Removing the medical underwriting element of the over 50’s policy increases the cost of all policies universally, regardless of the state of your health.
The importance of financial advice.
It’s often worth speaking to an independent financial adviser, not only because they can search the market looking for the most competitive offering, but they can also take into account the terms of the policy and how it suits your individual circumstances. Remember, an over 50’s life insurance policy is not suitable for everyone.
Call 0800 389 2193 to speak to an independent financial adviser about your individual life insurance needs or request a call back.
