Life Insurance – I’m over 50 years old, is it too late for me to get cover?

In a word… no! With health improving and people no longer worried about the dreaded ‘five-0’, ticking over into this magic number is something that you no longer need to be worried about.
Being in your 50s now is often the period where the kids have flown the nest, mortgage is due to be completed, and you have spare capital to play around with. With this comes extra responsibilities in term of protecting your family for their tuition fees, your mortgage payments or funeral payments.

Life insurance offers specific plans for those over 50 years old. You are guaranteed to be accepted with the majority of insurers and without the hassle of medical and health questionnaires, makes you a more ‘eligible’ customer. With this comes the caveat that your policy will be higher risk, resulting in ‘waiting periods’ at the start of the policy.

Usually, a policy will not pay out in the first 2 years of your start date, but this varies insurer to insurer. Click HERE to get an idea of costs and a breakdown of the different offerings that life insurance can give you as somebody over 50.
Paying into an over 50s life insurance plan means your family will have that protection in place if you die. However, there are ways you can make it easier for them to do so.

With a life insurance policy, the norm is that upon one’s death it will form part of a deceased person’s estate, in layman’s terms it needs to be collated with all your other assets and divided to the beneficiaries by your executor. The issue herein is that if your estate, including life insurance, adds up to over £325,000, in total, it will be subject to inheritance tax of 40%.

However, if you put your policy into a ‘trust’, it means you basically are giving it to someone else to look after for you. This will result in it being paid directly into the beneficiaries account when you pass away. Doing this means it is no longer part of your estate, therefore not able to be taxed.

Speaking to a consultant may be easier to navigate what an over 50s policy can do for you.

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