What Is Your Cover For?
Anything your loved ones want - that’s the joy of it, it can be your gift to your family once you have gone.
One of the main benefits of Over 50s life insurance is that the sum it pays out doesn’t have to be ringfenced for one specific purpose. But it might be a good idea to have in mind what the beneficiaries of your policy might use the money for before you sign on the dotted line, however, so that you aren’t doubling up.
By that we mean it’s worth re-visiting any other policies you might have in place, for example, to make sure your loved ones avoid using your Over 50s policy for any similar reasons in the long run. It might be that you already have funeral cover in place and are looking to use your Over 50s cover to help your family pay off outstanding debts once you have passed on, or your way of ensuring other members of the family get a helping hand in life where your own children have been provided for in your will.
Whatever your reasons, it’s a good idea to make sure your loved ones are up to speed on all of the protection policies you have in place and what they are for, so that the money you leave is divided up in the way you want, as well as in the most effective way, once you are gone.
What’s in The Small Print?
Not all over-50s life insurance policies are the same, and some are more flexible than others. Over-50s plans often require you to keep up with premiums until you die, or until you turn 90 - but not always.
Some providers will still agree to pay out a nominal sum if you’ve made at least half of the premium payments agreed, for example, while others are known to offer a cash-in option after a certain number of years too. And, while the pay-out your family will receive is normally determined at the outset, some policies do also include an option for that pay-out to increase as a protection against inflation too.
Comparison is Key
Premiums and pay outs can vary significantly from provider to provider, so always double-check the Over 50s insurance option you commit to is right for you and your individual circumstances.
Many providers offer policyholders the option to reduce their premiums after they have held their policy for a certain number of years but you also need to remember that if you stop paying your premiums before your 90th birthday, or at any time before the policy ends, it's likely your policy will be cancelled and you won’t get any of the money you have paid in back.
This means you have to consider carefully whether you will be able to sustain those payments into your twilight years before putting an Over 50s plan in place.
ActiveQuote can help you compare the Over 50s Life Cover options available to you, or find out more about switching your existing policy. Call our GOF helpline on 0800 088 2151 and speak to an ActiveQuote adviser today.