How does over 50s life insurance work?
You can choose how much you’d like to pay monthly and your desired level of cover, generally this stays the same throughout your policy. Monthly payments can start from as little as £5 or as much as £50 a month. When you die, a lump sum is paid to your family. Most policies state a minimum period of time that you have to have paid into your policy before your family can get a payout. This is known as the qualification period (or moratorium) and it’s normally between one and two years. Typically, if you die within the first two years, your family will get back what you paid in plus 50% on top. There is an exception to this though, if you die in an accident, such as a car crash, your loved ones will get the full lump sum. However, this does vary depending on the insurance provider and the policy so it’s worth thoroughly reading your policy to ensure you know how your policy works.