Over 50s life insurance
Over 50s life insurance, also known as over 50s life cover, is a specialist life insurance policy for people over the age of 50. Should you pass away your over 50s life insurance policy will pay a lump sum of money to your family.
Unlike regular life insurance over 50s life insurance does not take into account the policy holder’s medical history.
An over 50s life insurance policy can be bought for a variety of reasons depending on your situation. Many people take out over 50s life insurance to:
- Cover funeral costs when they pass away
- Leave a financial gift to family members such as grandchildren
- Secure their partner’s future with financial comfort through retirement
How does over 50s life insurance work?
Over 50s life insurance is different from a standard life insurance policy and as the name of product suggests, it is only available to those over 50 years old. The main differences of an over 50s life insurance policy are:
No medical history required
Over 50s life insurance does not require the policyholder to undergo a medical assessment which can be hugely beneficial to people who have suffered with ill health or pre-existing conditions. Standard life insurance policies may base your monthly premiums on your health, making them less affordable than an over 50s life insurance policy.
With an over 50s life insurance policy your premiums are fixed for the duration of your cover, regardless of your age or the state of your health.
Funeral benefit option
Over 50s life insurance policies can include a funeral benefit option should you wish to provide financial support for your funeral costs. According to Which? Magazine funeral costs have increased by 80% in the past decade and the average funeral now costs £7,6221. The funeral benefit option gives you the choice of having a lump sum of money from your over 50s life insurance automatically paid towards the cost of your funeral.
It is important to remember that with an over 50s life insurance plan you could end up paying more in premiums than your lump sum.
Who is eligible for over 50s life insurance?
Anyone who spends more than half of the year residing in the UK and is aged between 50 and 90 can take out an over 50s life insurance policy. If you meet these requirements you will be guaranteed to be accepted onto an over 50s life cover plan.
Whilst your medical history is disregarding on an over 50s life insurance policy, people who smoke may have to pay higher premiums as their life expectancy is less than non-smokers.
Some over 50s life insurance quotes will no longer require you to pay premiums once you reach 90, but you will still be covered for the rest of your life.
Why would I need over 50s life insurance?
It can be difficult to think about what would happen if you were to pass away unexpectedly, especially if you are supporting a partner or spouse. If you have an over 50s life insurance policy in place you can ensure you family have sufficient support to help with funeral costs.
1 Which? 2014