As the name suggests, Over 50s Life Cover is an insurance policy that provides protection for those aged 50 or over.
It is a whole of life policy which means that it pays out a cash lump sum in the event of the policy holder’s death, provided the individual concerned has held the policy for two years or more – so there’s no investment risk and, as the policyholder, you always know what your family will get.
Who is Over 50s Life Cover for?
Most insurers offer Over 50s Life Cover to customers aged between 50 and 80 years old (or 75 if the individual concerned is a smoker) without the need for a medical report. This makes it suitable for anyone in this age bracket who want to leave a cash legacy to their loved ones but don’t wish to provide details of their health - or for those who may have had trouble buying a policy before due to their medical history.
Provided you pay the premium agreed with your insurer for as long as the period specified, the named beneficiary will receive the money they are due in the event of your death.
The amount paid out to those named as beneficiaries will vary depending on the terms of the policy, which is why it’s so important to check the terms of your cover before taking out any life insurance policy.
What Is It Used For?
Money passed on through an Over 50s Life Cover policy is available to be used in various different ways. For example, the policyholder may choose to keep a certain amount of cash to help their loved ones meet the cost of their funeral or to pay off outstanding credit card bills or other debts.
It can also be used to leave a cash legacy to younger members of the family looking to pay for their education or to help them get a foot on the property ladder too.
What Else Do I Need To Know Before I Buy?
Because Over 50s Life Cover is a later life policy, different insurers have different specifications when it comes to what they will and won’t pay out in the event of your death.
The majority of policies come with exclusions and limitations regarding the time frame in which your death might occur after taking out a policy, most of which are relevant to the first two years of a premium being paid. The manner in which you die can also have a bearing on the amount an insurer agrees to pay out – if you are diagnosed with a terminal illness, for example, or die through an accident.
If you are choosing an Over 50s Life Policy to help cover the cost of your funeral, some providers may also stipulate these are covered subject to certain contributions being made by your loved ones via the appointed funeral director.
What Are Some Of The Benefits?
Payments cease once you reach the age of 90 in most cases, but the cover still stands. It is also possible to take out multiple Over Fifties Life Insurance policies with the same or different providers, subject to the maximum premium and cover amounts being imposed and can be an effective way to make sure your loved ones are supported financially in the period after you have passed away.
Cash benefits provided to your loved ones in the event you pass away through terminal illness or an accident are also often greater than the original sum assured by the policy, provided it has been in place for two years or more.
Does My Premium Change At All?
Many providers offer policyholders the option to reduce their premiums after they have held their policy for a certain number of years. This will affect the final amount your loved ones will receive via when the times comes to claim, however.
It’s also worth bearing in mind that, due to inflation, the value of the cash sum paid out may be reduced depending on how long premiums are paid for. This means the total premiums paid may be greater than any benefit paid out by an Over Fifties Life Insurance policy in the long run.
It’s also vital to remember that if you stop paying your premiums before your 90th birthday or at any time before the policy ends, it's likely your policy will be canceled and you won’t get any of the money you have paid in back.
To compare the Over 50s Life Cover options available to you, or to find out more about switching your existing policy, call our Guaranteed Over 50s Life Insurance helpline on 0800 862 0373 and speak to an ActiveQuote adviser today.