What is over 50s life insurance?
Over 50s life insurance is a type of life cover that runs from the age of 50 till you pass away. It's the great way to give you and your loved ones peace of mind that they are financially supported when you pass away or if you were to be diagnosed with a terminal illness. Just like any type of life protection, over 50s life insurance gives you the reassurance that your loved ones are taken care of when you're not around.
How over 50s life insurance works
Over 50s life insurance works just like any other type of life insurance policy. You will pay an agreed monthly premium and when you pass away or get diagnosed with a terminal illness, your beneficiaries (those named on your policy) will receive a pay out. 💰
As with any life insurance policy, as long as you continue to pay your life insurance premiums, you will be covered by your policy. As over 50s insurers will require you to pay premiums later in your life, it's important to make sure you will be able to afford these premiums once you have retired. 🧒
What are the benefits of over 50s life insurance?
There are many benefits of over 50s life insurance, here are a few.
Unlike most other forms of life insurance, with over 50s cover, you are guaranteed to be accepted for a policy. Insurance companies will accept you regardless of your medical history.
You can write your policy 'in trust'
Guaranteed pay out
As long as you continue to pay your life insurance premiums, you will be covered by your policy which means you will be guaranteed a pay out. However, with some policies, there is a minimum time period you need to pay before you are fully covered.
No medical history or awkward medical questions
Unlike a lot of other life insurance companies, at Bequest we don't require a medical exam. We want the process of life insurance to be as simple and easy as possible for everyone. We're bridging the gap for those who can't usually get life insurance. 💛
Lifetime insurance cover for the rest of your life
Having an over 50s life insurance policy means you are covered for the rest of your life. 🙌 In fact, some insurers may stop your premiums payments if you live past a certain age! Meaning you won't have to make your monthly payments but will still be covered. ☂️
Plan ahead for funeral costs
One of the most popular uses for an over 5os life insurance pay out is to cover the cost of the funeral. In the UK, the average cost of a burial is £5,033 and cremation is £3,885. This can be a big financial burden for your loved ones during a time of grief, but having an over 50s policy means they are guaranteed to receive money to cover these costs. ⚰️
What are the disadvantages of over 50s life cover?
Here are some of the disadvantages that come with over 50s life insurance:
Inflation could affect your fixed pay out
Inflation could cause your initially agreed lump sum pay out to decrease in value. 😟
You might pay more than you get
Not covered immediately
Quite a lot of insurance companies require you to pay into your plan for one or two years before you are fully covered, this is called a 'waiting period'. Meaning that if you were to pass away within the first one or two years of your policy, you won't be eligible for a pay out.
What should I think about before buying over 50s insurance?
Before you take out an over 50s life insurance policy, there are a few things you should think about. 💭
Your health and personal circumstances
When you're 50, it's likely that you still have a lot of life left in you! If you're in your early 50s and have a healthy lifestyle, you could be at risk of paying more in premiums than your fixed pay out. 🥴
Your age and financial situation
If you are in your later stages of life and still have debts that you're unlikely to pay off before you pass away, taking out a life insurance policy is a great way to pay these debts off after this happens.
How much cover you need
The amount of cover you need is dependent on your personal circumstances. You might want to think about how much money you want to leave to your loved ones, the cost of your funeral and how much you might need to leave in order to cover any debts such as an outstanding mortgage or any consumer debt.
You won’t be fully covered for the first few years
As we've mentioned, most over 50s life insurance policies come with a one or two year waiting period. This means that if you pass away during the first or second year of your policy, your beneficiaries won't receive a pay out. Always read the fine print of your life insurance policies before agreeing, it's important you know what you're signing up for. ✍️
Important information before you buy a life insurance policy
You should always be aware of what you need to know and do to keep your life insurance journey smooth sailing. ⛵️
Missed monthly payments could cancel your life insurance plan
Keeping up with your monthly payments, also known as premiums, is vital to keep your life insurance policy valid. There is no cash in value with over 50s life insurance so if you were to stop paying your monthly premiums, it's likely that you will have wasted your money. 😔
Your fixed lump sum could be less than you pay in
If you buy an over 50's life insurance policy early on, you could be at risk of paying more in premiums than your fixed lump sum pay out is worth. This would happen if you live for a lot longer and end up paying your premiums for a long period of time. ⏱
Inflation could decrease the relative value of your cash sum
Unfortunately, due to inflation, your fixed lump sum pay out could go down in value. For example, if you agree to a fixed sum of £15,000 when you're 50, it could be worth a lot less by the time you're 80.
Full cover begins after two years
With over 50s life insurance, it's common for there to be a waiting period of one or two years. This means that you have to pay into your policy for this amount of time before you are fully covered and eligible for a pay out.
Carrying multiple over 50s life insurance policies is acceptable
Generally, having more than one over 50s life insurance policy is possible, but each life insurance provider is different and has a maximum amount of cover that can be taken out by each individual.
Speak to our team for free life insurance quotes
If you have more questions about over 50s life insurance, feel free to drop us an email at alexa@bequest or chat with us on our website. We're always happy to chat! 💛
Is it worth getting life insurance at 50?
What is the difference between life insurance and over 50s life insurance?
Over 50s life insurance is a type of life insurance that covers you for the rest of your life. It can be taken out at any point after you turn 50 and it provides your loved ones with peace of mind and guaranteed financial protection after you die. Life insurance in general includes term, decreasing, critical illness and others!
What is over 50's life insurance?
Over 50s life insurance is a life cover policy that can be taken out between the ages of 50 and 80. You pay monthly premiums and your beneficiaries receive a lump sum pay out when you pass away.
What type of life insurance is best for a 50-year-old?
Everyone's wants, needs and circumstances are different. Depending on your health, over 50s life insurance could be a good option if you don't have a healthy lifestyle as you are guaranteed to be accepted. However, if you have a healthy lifestyle, taking out an over 50s policy at 50 might result in you paying more than you get back.
At what age can you no longer get life insurance?
When you have reached 80, you are no longer able to buy a life insurance policy. That's why we recommend taking out life insurance as early as possible. And get an individual policy, rather than a joint policy.
How many over 50 life insurances can you have?
Depending on the life insurance provider, it is possible to have more than one over 50s life insurance policy. However, some providers have a limit on the total coverage you can have with them.
Read this article to find out more, How Many Life Insurance Policies Can I Have?.
Is life insurance more expensive after 50?
With all life insurance, it gets more expensive the older you get. That's why we recommend taking out a policy as early as possible to ensure you and your loved ones are protected.