Life Insurance Options For People Over 50

In Family, Insurance, Protection by Tom Pullinger

Many older people don’t think they need to worry about life insurance. In fact, according to research by Moneysupermarket, just over a third (36%) of over-55s don’t currently have a life insurance policy.

But the reality is that funeral costs have risen dramatically over the past 15 years, with SunLife research revealing an increase of 112% during that period. As a result, families of the deceased increasingly have to find thousands of pounds to make up the shortfall in the financial provision made by their loved one.

How can life insurance help?

By the time you reach your 50s, your financial needs are likely to have changed. The good thing is life insurance can help by alleviating the financial strain associated with dying, as well as providing for your dependents should the worst happen. For example, life insurance can help with the costs of your funeral, replace your income, pay off any debts you may have, or act as an inheritance for a loved one.

Life insurance options

When you hit 50, traditional life insurance policies are, as you would expect, more expensive. That’s simply because you are older and represent a greater risk to the insurer. After all, it’s unlikely that even the fittest 50-something isn’t going to be around for as long as they were in their 30s.

General life insurance

As we’ve already mentioned, general life insurance is often more expensive when you’re in your 50s. Nevertheless, you still usually have two options available to you: level term and decreasing term.

With a level term life insurance policy, the insurer will pay out a fixed lump sum in the event of your death. This amount will not change throughout the policy. However, level term life insurance generally expires when you hit a certain age, such as 65 or 70.

With a decreasing term life insurance policy, the lump sum decreases as the policy goes on, making it suitable if you want to cover a repayment mortgage that will decrease over time.

An over-50 life insurance plan

Over-50 life insurance plans have become more and more popular, what with their celebrity endorsements and promises of a free gift. The bottom line with over-50s plans is you pay a premium each month and the insurer pays out a lump sum in the event of your death.

However, one aspect of these policies that many people don’t know about is that the lump sum payout is usually capped at a certain amount, but your payments aren’t.

The benefit of an over-50s plan is that anyone over 50, regardless of their medical history, is guaranteed to be accepted. This makes them a good option for people who may not have been in the best of health throughout their lives.

With an over-50s life insurance plan, the level of payout is usually determined by how much you’re willing to pay each month. But the payout is ultimately going to be less than if you were to take out a general life insurance policy. Also, over-50s plans do not tend to pay out within the first one or two years of the policy commencing.

Over 50 and still want some more advice about life insurance, its benefits and your options? Contact us today and one of our advisers will give you the information you need to make a fully informed decision.

A highly motivated result’s driven individual with a wealth of experience in the Healthcare & Group Risk market. I have established strong relationships with large multinational clients through excellent interpersonal skills. I have advanced listening, negotiating & influencing skills that allow me succeed in a team based environment. I have comprehensive knowledge of the UK Healthcare & Group Risk market. This knowledge has been obtained through the Chartered Insurance Institute & self study.