Over 50 Life Insurance Cover
For most people turning is 50 is when they begin to reflect on their lives and think about the future of their loved ones. Questions such as “what would happen If my partner was left to pay the mortgage on their own” or “How would my family pay for funeral costs” often come to mind. Life insurance is the answer.
What is Over 50 Life Insurance?
This is a form of insurance for those specifically aged over 50. By taking out life insurance you have the peace of mind that your loved ones will be taken care of financially when you die. Over 50 life insurance is devised so that a cash sum will be provided to your other half and/or children. It can be used to put towards funeral costs, outstanding bills or even a gift.
There are different policy covers which require monthly payments. Life insurance becomes more expensive the older you are so it is important to choose the right cover for you.
Factors affecting costs
The type of policy cover is based on factors such as health- long term illness, lifestyle i.e smoker, sex, age and job. Not all over 50’s life insurance policies are the same.
State of Health
This can put you as a high risk candidate if you have a medical condition (serious/non-serious) making premiums higher for over 50’s.
- Diabetes (Type 1 or 2)
- High Blood pressure
- Long term illness
- Amount of alcohol consumed
- Adrenaline sports/hobbies
- If you are at the younger age of over 50, insurance premiums are likely to be lower.
- However if you are in your 60’s or 70’s, insurance premiums will be significantly higher.
- This can affect the duration of the insurance policy and the amount of cover required.
Recipients of the cash sum
Paying into your over 50’s life insurance plan will benefit your family when you die. A life insurance policy will include your estate along with your assets which will be divided to the recipients by your executor.
If your life insurance policy adds over a certain amount it will be liable to an inheritance tax of 40%. By placing your policy into a trust allows a third party to look after the policy, with the sum being paid to your recipient. This means it’s no longer joined to your estate and is unable to be taxed.
Considering Over 50 Life Insurance Plans
- If your policy is cancelled there is no cash in value.
- If monthly payments are not made the policy will end.
- Payment in and pay out is dependent on the product chosen.
- Inflation may affect monthly contributions.