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How do I Choose The Right Over 50’s Policy

As the name of the policy type states over 50’s policies are focused on those over the age of 50. There are varying reasons why such a policy should be contemplated which we will cover in this article. One of the main points to consider is would this be beneficial to your needs if you already have a policy in place or have had a policy recently rejected. Secondly, the question to ask is what are the signs to spot that you are getting a good deal.

Over 50’s policies similar to a term policy are paid monthly but it is also worth noting that you can also pay them annually and if you choose to do so a number of providers may offer a minor reduction in the premium. As with all policies ensuring that you pay your policy every month is vital to ensure your policy pays out should the worst happen.

How would I know if an over 50’s policy is right for me?

The three critical areas to consider here are age, health, and your personal needs. One of the biggest positives to keep in mind is that over 50’s plans do not require underwriting meaning that you are guaranteed to get cover. There are however age stipulations, typically that you are between the age of 50-80 but this isn’t to say that policies can’t be offered even higher. When searching with a company like Simply Cover we’ve been able to receive quotes on policies with a maximum age as high as 85. 

Naturally being guaranteed a policy irrespective of your health history and even your level of risk attributed to your employment is a significant plus to a number of consumers. 

Is a term policy cheaper than an over 50 policy?

This will fundamentally come down to circumstance as in a certain amount of cases an over 50s policy can be seen as the alternative to a term policy that has received more stringent underwriting and have a high monthly premium. So even if you have been rejected a traditional life insurance policy based on health grounds, family history or due to your job role then over 50s will still provide the opportunity for you to secure a life cover policy. Like all situations when reviewing cover be it for your home, car etc it is best to keep your options open and when it comes to life insurance it’s best to compare quotes and cover benefits for both over 50s and traditional life insurance.

How much Does over 50’s life insurance cost?

Dependent on your age premiums can start as low as £5 per month and typically will operate at a sliding scale year on year with minor increments to the monthly amount. There are also providers who can offer fixed monthly pricing on over 50s policies but again this will have pros and cons so take this into account when considering a fixed premium over 50s plan as the likelihood is such policy premiums will be more expensive. Reviewing the market is highly recommended as there will be price led plans and costly plans. In respect of this being clear on what benefits you need is important from the outset so that you are not tied into a policy that doesn’t meet your needs. Also when reviewing the cost of a policy be sure to keep in mind plans that will lure you in with incentives may not actually provide the type of cover you need.

Is there any minimum payment with an over 50s plan?

The majority of insurers will require you to pay a minimum period in order for the policyholder to be eligible for the full sum assured to be paid out. 12 months is quite standard for this but again keep this in mind as some policies can be as high as 36 months so this is just a key area to keep in mind when reviewing the market.

What if I outlive my over 50s policy

If you outlive your policy most insurers will provide free cover once you hit a certain age (typically this is 90 with most insurers). Your policy won’t be canceled but what it does mean is your premiums will stop but that your cover will remain in place.

What happens if I die within the minimum payment period?

This will come down to the provider and the deal the policyholder signed up to. It’s not uncommon for the policyholder to receive the sum amount of the premiums that they have paid up until that date. Also if the policyholder’s death within the minimum period was due to accident then the provider may still payout (but this is provider dependent). Being aware of the finer details of your policy is key when it comes to such contentious areas and again why seeking professional assistance be it with a company like Simply Cover or a financial advisor can shine a light on important areas that can easily be missed when reviewing polices on a comparison site.

How can an over 50s payout be left to a loved one?

When an over 50s plan pays out it will become part of your estate and go to the beneficiaries that were named in your will. Alternatively, you can write the over 50s plan into a trust, and again the policyholder controls who the payout goes to. Writing a policy into trust also has the added benefit of being able to avoid inheritance tax (if the total trust is less than £325,000).

What can an over 50’s plan be used to pay for?

There are no stipulations as the cover paid out can be used to pay funeral costs, outstanding mortgage costs, pay debts or just make the transition for loved ones financial needs without the policyholder just that bit easier at a time when financial concerns are the last concern.

Does inflation affect the premiums of an over 50s plan?

It is true that inflation can play a part in the amount that a policyholder’s loved ones receive. This is because when you start an over 50s policy that your amount is fixed. So keep this in mind that what you initially set as the payout would still be the payout your loved ones could receive in 30 years. A £25,000 payout today compared to what it would be worth in real value in 2050 could be quite different and so this should play into your decision making process now as to whether your perceived cover amount would provide the protection you want for your loved ones longterm. 

What should I look for in an over 50s protection provider

Like any review of products be it insurance or consumer goods the company providing the product/service also should be evaluated. With regards to an over 50s product reviewing customer testimonials, financial bodies providers are signed up to and their defacto rating are all key areas to take into account when looking beyond the product being offered. At Simply Cover we review products from across the market and work with leading 5 star defacto rated providers, due to the relationships we have with these providers we also gain access to preferential rates that you may not be able to access through other third parties.

As previously mentioned be cautious of gift offers for costly premiums and be sure to take into consideration the benefits of free electrical devices, vouchers, and complimentary gifts if the policy in place actually comes with a costly monthly premium which you will be then tied into. This isn’t to say that there aren’t deals with complimentary sign-up offers that will be in your favour but just to take into consideration the policy benefits versus a high-value incentive to take out the policy.

Reviewing the over 50s cover market can be a straightforward process that Simply Cover can assist you with. Get in touch today to discover all of your options on a new life insurance policy.

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