Protecting yourself with Over 50 Life Insurance is as easy as 1, 2, 3

Article published on 21st April 2009

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Over 50 plans are a way to ensure you can leave a lump sum of money to your family (or partner) when you die. Whether you wish to ensure your funeral costs can be covered or you simply want to leave a nest egg for your children or grandchildren, this form of over 50 life insurance can prove to be a cost effective choice.

Various forms of over 50 plan exist, some taking the form of traditional over 50s life insurance, some offering to cover you for the whole of your life and others offering options which do not require medical questioning (but with higher premiums as a result).

Here are our top 5 tips for each of these types of cover:

Over 50 Life Insurance

  1. Over 50 Life Insurance will cover you immediately for a set amount for a certain number of years.
  2. Prices start at ?8 per month (Based on a 50 year old Male, Non-smoker looking for ?20,000 over 25 years, correct April 2009) and increase if you would like more cover or longer cover.
  3. Your medical history is questioned during the life insurance application and the insurance company may write to your GP to get additional information. This is all paid for by the insurance company and is routine to make sure the insurer fully understands any medical condition you have.
  4. A wide range of insurers offer the over 50s life insurance policies such as Bupa, Legal and General, Scottish Equitable, Fortis and Royal Liver.
  5. Your cover can be written into a trust to ensure the payout isn't affected by inheritance tax or probate.

Whole of Life Insurance

  1. Covers you immediately for a set payout but unlike traditional life insurance, it will continue covering you until the day you die with no policy expiry date.
  2. Prices start at ?10 per month (Based on a 50 year old Male, Non-smoker looking for ?5,754, correct April 2009) and increase if you would like more cover.
  3. The insurance company will ask you some medical questions much like with traditional life insurance and may ask to write to your GP to gather any extra information they need.
  4. The whole of life cover is offered by a range of insurers including well known names such as Legal and General, Liverpool Victoria and Norwich Union.
  5. Some insurers will take over paying your premiums once you reach a certain age (such as 100) and continue to cover you until you die at whatever age.

Over 50 Plan

  1. With over 50 plans you start paying your premiums from day 1 but full cover is not offered until after two years. If you die within the first two years, your plan will pay a percentage of the paid premiums back to your family. After two years, the over 50 plan pays out a set amount determined by the premium you are paying.
  2. Prices start from approx. ?10 per month but vary greatly depending on the company who are offering the plan.
  3. Usually these life covers will offer guaranteed acceptance because they do not ask about your medical history. They simply exclude anything you have suffered from in the past and offer the cover at a higher premium than over 50 life insurance or whole of life insurance to reflect the extra risk to the insurer.
  4. The covers are offered by a wide variety of companies including brands which you wouldn't normally associate with insurance such as the Post Office.
  5. Generally these plans are only the most cost effective if your medical history makes the other forms of cover expensive or unobtainable.

Overall, protecting yourself with any form of life insurance isn't difficult or full of hassles and is essential if you do not wish to leave somebody else to pay for your funeral. Each type of cover has its own pros and cons and as such seeking advice from an independent advisor who will search the whole of the market, is the best solution to ensure you are getting the most suitable cover at the best price.

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