For most people who take out life insurance policies, the focus is on help with funeral costs as well as the future financial security of the loved ones who remain after an insured person passes away. The same applies to over 50’s life insurance; these types of policies are designed to provide a lump sum to loved ones after the policy holders death, so even at this later stage in life there are still many advantages to getting life cover.
What are the advantages of over 50’s life insurance?
Most over 50’s life insurance policies cover those between the age of 50 to 80 or even sometimes 85, depending on the policy, and the biggest advantage of this type of cover is that acceptance is always guaranteed. Typically, there are also no health questionnaires to fill out and answer, neither are there any medical checks to undergo.
Tax Free Pay-outs
In the event of the death of the policy holder, an over 50’s life insurance plan will pay out a tax free lump sum to his/her loved ones which may help with funeral costs, outstanding medical expenses, as well as the regular bills they were responsible for. In addition to death benefits being exempt for tax purposes, in certain cases, one life insurance policy can also be exchanged for another without incurring any taxation. With some policies, it is advisable to write the policy ‘in trust’ to avoid your loved ones being liable to pay inheritance tax.
Most life insurance policy providers offer flexible terms that can be adjusted to suit the requirements of the policyholder. Depending on your chosen provider, you may also be able to adjust the amount your policy will pay out as well as reduce or increase your premiums to suit your finances.
With the ability to see an estimation of the pay out your loved ones can expect to receive, an over 50’s life insurance policy can also be used as a tool to help with your financial planning for the future. In addition to healthcare and funeral costs, other outstanding commitments such as mortgages can also be considered when deciding the level of your premiums and resultant pay out.
Simplicity and Affordability
With no health checks to undertake and various options on the amount you pay as your premium, over 50’s life insurance offers a simple and affordable way to provide a form of financial security should you pass away. Insurers will normally consider your age, whether you are a smoker or not, and the amount you’re planning to pay in, but as mentioned above, most applicants will be accepted irrespective of these factors.
Another advantage of over 50’s life insurance is that if you are lucky enough to live up to 90 years of age, you will still be covered but may not have to continue paying your premiums depending on your policy. In conclusion, if you are over 50 and do not currently have life insurance, it is not too late to get coverage. Most reputable providers will still be able to provide you with a policy and, in turn, provide peace of mind and financial certainty for your loved ones.