Many people seek life insurance to protect their mortgage payments and dependents, in the event of their deaths.
But what if you have paid off your mortgage and have no dependents? Do you still need life insurance?
The article will discuss life insurance for the over 50’s and what older people should consider when looking for financial protection later-on in life.
This is a type of specialised life insurance product designed for those over the age of 50. Insurers created them to offer financial protection for those who may not have a mortgage, or children that rely on their income anymore, but would still like a way to protect their other possible debts from impacting their partner, should they die during the length of the policy.
Quite often over 50s insurance products are used to cover the policyholder’s own funeral costs and to leave a certain amount of money to their loved ones.
They work like conventional Whole-of-Life Insurance policies, where you choose the amount of cover and pay monthly premiums up until your death. The calculation of your premiums will be made based on how much cover you need and how much you can afford to pay, as well as your age, occupation and health.
Gary is 59 and took out an over 50s life insurance plan two years ago. He pays £30 a month to cover his premiums. Recently, Gary suffered a heart attack and was sick for a very long time. As he had savings, he was able to cover his insurance premiums, as they were still affordable for him. He had also reached the two-year initial period for paying in premiums, his family will also stand to inherit the full lump sum at the end of Gary’s policy. Further, because he is on an over 50s plan with guaranteed acceptance, his insurance premiums will not increase as an off-shoot of his ill health. It seems Gary made the decision to take out over 50s insurance at exactly the right time.
What are the Alternatives to Over 50s Life Insurance?
Savings and Investments – If you are looking for a way to give your loved ones a parting gift only, you may be able to save or invest using conventional methods. There may be less risk to the money you’re leaving behind, if you opt for this method, as you will not have to keep up with premium payments in order for your family/friends to benefit.
To find out more about over 50s life insurance, get in touch with a specialist insurance broker. They can offer you a free, no-obligation quote.
I needed life insurance and critical illness for myself and my wife. I got a number of quotes from some of the big brands and was very happy with the final price. Mike Davidson, Birmingham
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* Life insurance from 20p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis and available from Beagle Street. Figure accurate as of 19/03/2015.
* Life insurance & Critical Illness from 35p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis along with £50,000 of critical illness cover and is available from Beagle Street. Figure accurate as of 19/08/2015.
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