Insurance

Published on February 15th, 2016 | by admin

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Over 50 life insurance comparison

If you are aged 50 or over, now might be the perfect time to buy life insurance.

Whether you are looking to make sure that your eventual funeral expenses are covered; want to leave your family and loved ones free of any debts that may be outstanding; or simply want to leave them with the gift of a financial settlement (to help meet inheritance tax liabilities, for example), an over 50 life insurance policy might do all this and more.

How do I go about comparing the options?

  • you might have seen any number of advertisements for this kind of insurance;
  • fortunately, there are providers that offer ready and thoroughly comprehensible comparisons, showing all of the options available to you – and prepared to provide you quotes from the whole range of leading insurers;
  • some might even promise to match the best price for your insurance you might have been able to find by using some other comparison website;

What is going to be covered?

  • comparisons may also be complicated by the fact that over 50 life insurance plans typically offer very similar benefits;
  • first and foremost, perhaps, is the certainty of a guaranteed lump sum cash settlement, paid to your designated beneficiaries, when you die;
  • provided your monthly premiums are up to date, an over 50 life insurance plan pays out this agreed amount whenever it is, at whatever age you are when you die;
  • the amount of that guaranteed final pay-out is determined solely by the amount you decide to pay each month in premiums;
  • you need to remember, however, that those premiums are payable for the rest of your life – or, in the case of some policies, until you reach a certain age, of, say, 85;
  • if you do not continue to pay the monthly premiums, the policy lapses and there is no cash-in value;

Considerations

  • when making your comparisons, you might also want to take into account the fact that there are certain restrictions likely to apply to any policy you arrange;
  • there is typically a moratorium, for example, for the first 12 or 24 months of the policy so that it does not pay out the insured sum, but instead repays some or all of the amount in premiums you have paid;
  • you might also want to reckon with the effect of inflation over the years and recognise that today’s values are unlikely to be the same as those in years to come – so the purchasing power of the guaranteed benefits are inevitably less than at present; and
  • because you are paying premiums every month for the rest of your life – or until you reach a ripe old age – you might find that you have paid more in premiums than the final settlement sum;
  • as over 50’s life insurance policies are designed for people who cannot get traditional life insurance elsewhere – may be because they have a pre-existing medical condition – if you are in good health, then you may wish to consider a standard life insurance policy instead. Typically you’ll get up to 40% more cover for the same premiums you’d pay for an over 50 life insurance policy.

Comparing over 50 life insurance might prove more difficult than it first appears. A number of factors are likely to affect the price of any policy and there are a number of considerations that need to be kept in mind when entering into such a long-term insurance contract.


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