Over 50s Life Insurance Comparison. Fact! If you don't compare over 50 life insurance you will not get the best quote. Choose the best policy and save £1000s.
What is Over 50s Life Cover?
An over 50s life insurance plan will pay out a pre-decided lump sum to beneficiaries of the insured. The claim is usually settled within 15 days from the claim date and is extremely useful for persons with limited assets and savings. It can be used to cover funeral expenses or leave a small inheritance to the survivors on the death of the insured.
An over 50s life insurance policy is designed for those persons between the ages of 50 to 80, who may not have saved money to meet funeral costs or leave a small inheritance to their survivors. The primary advantage of purchasing an over 50s life insurance lies in its guaranteed acceptance clause. Any person looking at purchasing an over 50s policy must be accepted without any medical tests or questionnaire if he or she satisfies the eligibility conditions laid down by the service provider.
Thus, any UK resident over the age of 50 is eligible for an ‘over 50s life cover’. The person getting insured can select the monthly premium, which needs to be paid without fail till the insured reaches 90 years, after which the policy will continue to be in force until the death of the insured. However, if the monthly premium is not paid as per schedule, the policy will lapse and the cover will end within 30 days of the missed premium.
The insurance company will be able to provide the value of the payout on the basis of the monthly premium. A claim can be made within 1 year in the case of accidental death. After 1 year, a claim can be made for all deaths and the insurance company usually settles the claim within 15 days of the claim date unless legal considerations are part of the claim settlement.
An over 50s life cover is not necessary for all persons over the age of 50. Healthy persons can opt for typical life insurance policies like whole-of-life or a term insurance, as these provide better return to the insured. Further, these policies usually have a cash in value or surrender value, unlike over 50s life cover plans.
An over 50s life insurance plan offers the benefit of purchasing the cover without undergoing any medical tests and is, therefore, ideal for persons with health problems. The insured is covered for life and the payout from the plan can be used to meet funeral expenses or make small provisions for survivors.
An over 50s life cover has no cash-in value at any time while the policy is in force. On the contrary, the value of the premiums paid by the insured may exceed the final payout value. This might happen when accounting for inflation. It can also happen if the insured person lives for a longer period and thus pays a larger amount as premium.
What is Over 50s Life Insurance with Guaranteed Acceptance?
Life insurance gains priority as we age, more so when we hit milestones like 50 or 60 years. However, the terms of an over 50s Life insurance differ from that of regular life insurance policies. Generally speaking, guaranteed acceptance and fixed premiums are usually associated with most over 50s policies.
The guaranteed acceptance clause that is always used with any over 50s life insurance states that any person who meets the eligibility criteria will be able to purchase the cover. The applicant does not have to declare the condition of his health, habits, and lifestyle, pass any medical fitness tests or answer any questions regarding his health.
The eligibility criteria for purchasing an over 50s insurance plan is with the guaranteed acceptance clause is:
- The insured must be between the age of 50 and 80
- The insured must be a UK resident for at least 183 days per year
Under this plan, the insured will have to pay a pre-decided premium till the 90th birthday, after which the cover will extend till his end of life. Different insurance providers offer competitive plans for the applicant to choose from. This offers scope for selecting the value of the premium, the value of the death benefit and so on and is usually based on the level of cover needed.
This plan is designed for persons over 50, who may not qualify for a regular insurance plan. This plan is particularly popular with persons who have either made very low or negligible provisions for the future and now wish to correct the situation.
What are the alternatives to an Over 50s Life Insurance with Guaranteed Acceptance?
Healthy individuals could consider purchasing a whole-of- life or a level term insurance as both offer better returns than an over 50s life insurance plan with guaranteed acceptance. Other alternatives include purchasing a pre-paid funeral plan or setting aside an amount for meeting future costs like funeral expenses or inheritance.
What are the Benefits of an Over 50s Life Insurance with Guaranteed Acceptance?
The insured need not undergo any health or medical tests before purchasing the plan. No questionnaire with regard to the health of the insured need to be answered either while purchasing the policy or during the period that the policy is in force. This plan can help the insured make provisions for his dependents including partner and children below the age of 21.
What are the Main Drawbacks to an Over 50s Life Insurance with Guaranteed Acceptance?
The guaranteed acceptance clause only guarantees approval for the purchase of the plan. The plan will cease to be active in case of lapsed premiums. An over 50a life insurance plan has no cash value till such time as a valid claim is not made. The premium paid may be in excess of the pre-decided cash lump sum payable on the death of the insured.
Difference between an Over 50s Plan and Term Life Insurance
A person over 50s looking at purchasing a life cover is usually drawn to an over 50s Plan. However, there are a few other plans to choose from including a whole-of-life plan and term plans. While each plan has its advantages and disadvantages, each is designed for a different type of individual.
Generally, the cost of purchasing an insurance plan goes up with the age of the insured. Furthermore, most persons over the age of 50 are usually prone to various health conditions. This increases the cost of purchasing any of the regular insurance plans. In comparison, an over 50s plan looks lucrative, particular on the surface. It emphasizes on the guaranteed cover and no medical test features, wherein any UK resident over the age of 50 can purchase an over 50s plan without having to undergo any medical tests.
While such a plan is highly beneficial for persons with medical conditions, a healthy non-smoker can usually get a better offer under a term insurance plan. The term insurance provides a lump sum payout in case of death of the insured from the start of the plan, unlike a 50s plan wherein pay-out is usually done only a year after the policy is in force. An over 50s plan is valid till end of life of the insured as long as the monthly premiums have been paid while a term insurance generally stops at the 80th birthday. The maximum cover of a term deposit is decided by the insured while the value is pre-decided in the case of an over 50s life cover.
Commonalities between an Over 50s Plan and Term Life Insurance
Term insurance and over 50s insurance have a few common factors. Both offer a lump sum payout against a valid claim, on the death of the insured. Similarly, if monthly premiums are not paid according to schedule, the life cover offered under both policies ceases after a grace period of 30 days.
Main Benefits of Term Life Insurance
A term insurance offers a joint cover, and the insured is free to choose the maximum value of life cover. The term insurance also provides for a lump sum payout in the event of natural death of the insured from the first day of activating the plan provided a valid claim is made during the policy term.
Main Benefits of Over 50s Life Insurance
The primary benefit of an over 50s life cover is to the not so healthy individual over 50 since the policy clearly states that the insured need not undergo any medical tests and acceptance is guaranteed for all UK residents above 50 years of age. The policy covers the insured till death provided all premiums have been paid on time.
UK Companies that Offer Over 50 Cover
Living in an uncertain world, all of us worry more or less about what will happen to our families once we are not here anymore. Accidents and death both come without warning so smart people plan for these in advance. Statistics show that people with life insurances have much more peace of mind than those who do not. Taking out life insurance policies will secure the family’s future if something happens to you. So do not leave your family’s future at stake and get them secured as soon as possible.
Most people take out life insurance when they start a family and they look into the future. Many people are covered by whole life insurances. But there are also term insurance holders and in many cases they live past the fixed term. This leaves the family without any protection once you pass away.
So many people go for over-50s life insurance policies for many reasons such as clear outstanding debts on their death, help the family pay their funeral costs or to simply leave a gift for the loved ones. Depending on your needs, you can choose from a wide range of offers. Usually, over-50s life insurance policies have a fixed term before the full protection program is active and the term in most cases are two years. In this case, the sum of the premiums is usually returned by most insurance policy providers. If you keep on paying the premiums your plan will stay active but if you stop paying the premiums the plan will too. So it is easier to stop the policy than you thought.
There is a downside to over-50s insurance policies too. You can end up paying more than you will get at the end of the policy if you live long enough. Though this does not usually occur but even if it does it is better than having no backup.
Most of the big insurance companies provide over-50s life insurance that pays out a cash sum at the event of the insurance holders’ death. The best things about over-50s life insurance policies is that acceptance is guaranteed; no questions asked. You do not even have to go through a lengthy medical test. In most case, you will be accepted if you are between the age of 50 and 80 and in some cases 85 and if you’re a resident of UK.
Almost all the big insurance providers have over-50s policies in the offer. We have compiled a list of a few of the best options you can choose from.
- Legal and General
- Sun Life Financial
- Shepherds Friendly
- Engage Mutual Assurance
Some Videos to Watch
Here is a decent video from PayingTooMuch
This video is from SunLife so should be taken with a pinch of salt, but still worth taking a look at.
Joint over 50 life insurance
Life is filled with uncertainties. Tragedy can strike anytime and you will need to leave your family behind. For most of the people taking out life insurance marks a turning point in life as it shows that the person now has things in his life that needs to be insured. Most of the people take out life insurance at a younger age to start their lives with backup and thus peace of mind. Having a life insurance policy gives you assurance that your family will be not left without a backup if something happened to you. Taking out a life insurance is long-term protection for your family and loved ones.
There are many people who do not purchase life insurance at their young age just because they do not feel the need to get one. But as time passes by and responsibilities increase many people want to get their families future secured. Life insurance comes in many different forms, but the underlying theme is the same; to protect the family in case anything happens to the policyholder.
Family is the key motivator in buying life insurance. Traditionally, the main breadwinner of the family takes out the life insurance policy. This is mainly to protect the family when the breadwinner passes away. But in these tough economic times, many families now rely on two incomes to make ends meet. As a result, joint life insurances are starting to become more popular. Joint policies are designed to cover two policyholders under one policy so that each policyholder is protected in case of the other passing away.
Life insurance policies are a little complicated just because human beings are complicated. You need to do a little homework before deciding on a policy. Joint life insurance policies are simply designed to cover two people under one policy rather than one. The complexity lies in the type of cover offered.
The most common type of joint life insurance policy is the first death cover. This is a fixed term policy and it lasts for a fixed amount of years, and if any one of the policyholder dies within the designated time frame, the policy pays out. As the name suggests the policy will pay out on the first death within the set time. The surviving member and the family receive the money. The second kind of joint policy is second death cover. As the name suggest, this policy pays out when the second member passes away.
If you’re over 50 and planning to take out life insurance then joint policies can be the way to go. This will mean your partner will stay be safe in case you pass away. Joint life insurance policies are definitely cheaper than two single policies. You have probably already lived most of your life and giving away too much money to the insurance companies can be a waste. So a joint policy can be a good way of making sure both of you are covered.more information