Over 50s Life Insurance

What is over 50s life insurance?

Over 50s life insurance is a life insurance policy that’s typically taken out by people between the ages of 50 and 85. It’s very different from traditional life insurance as you don’t have to submit any medical records or do any health checks in order to get a policy. With an over 50s policy, you’re guaranteed a payout when you die regardless of your health or lifestyle.

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.

What are the pros and cons of over 50s life insurance?

Pros

  • You’re guaranteed acceptance regardless of your health or lifestyle
  • It’s quick and easy to get a policy as you don’t need to submit any medical records
  • A lump sum is guaranteed to be paid out in the event of your death

Cons

  • If you miss a monthly payment, you’ll no longer be covered and you’ll lose all the money you’ve already paid into the policy
  • You could pay more into your policy than your loved ones receive in the event of your death
  • If you die during the qualification period (moratorium) your family won’t receive the full payout
  • The cash payout is determined when you take out the policy so as time goes on, inflation will reduce the value of the payment amount

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