When you are looking for over 50′s life insurance you are mainly looking for the most affordable life insurance and the best life insurance, but can one policy be both. That is a difficult one to answer; you really need to look around to make sure the policy fits you and your lifestyle as it stands now, and that is possibly very different than when you were younger. It is a good idea to take a hard look at your life circumstances and ask yourself some pertinent questions.
Do I need over 50’s life insurance?
Can I afford over 50’s life insurance?
Am I too old to get life insurance?
Will I have to take a medical?
Will my outdoor pursuits affect my policy?
Once you have thought about why you want life insurance you really enter the arena, over 50’s life insurance is big business and everyone wants your business. The sales people are good at their jobs and want you to buy their policy before you have a chance to look around. So, make sure you are not bamboozled into buying something that is not suitable for your needs.
Have an idea of what you would like in a perfect world, and then work out the reality of what you can reasonably afford
Visit all the insurance comparison sites this may seem tedious but you can really start refining what you want when you see the price of policies and what some include and others don’t.
Compare policies of the over 50’s life insurance options and work out what is best for your future
Ask lots of questions; be specific about clauses and time periods, if you have rock climbing or diving as your pastime passion, make sure you disclose this as you may require a high risk policy
Don’t sign up immediately to any insurance policy give yourself time to think, preferably a couple of days. A good insurance broker or sales person will always wait for you to make an informed decision.
READ the small print
What is life insurance?
Life insurance at over 50 is a sound investment plan which enables you to leave funds to a particular person. The financial agreement you make is where you make set payments to an insurance company for a certain period of time and they agree to pay a certain amount to a beneficiary you name. The flexibility and the amount covered are entirely up to you.
There are three main types of life insurance policies
Term life insurance – the policy is for a specific period, premiums are paid over an agreed period of years payment is on death within the policy period.
Whole life insurance – the policy is covered to a certain age (usually 100), premiums are paid over an agreed period of years, have a death benefit, have a cash value and can be liquidated to release the funds.
Universal life insurance – these are very flexible and you can pay in any amount up to a certain maximum. They have a cash value and can be liquidated to release the funds.
Your responsibilities
You will be bound to pay the agreed amount of premiums over a fixed period of time, and be aware of the life insurance policy clauses.
If you pay into a life insurance policy you need to make sure you have the funds to be able to commit to it for the entire term. If you stop paying you may be subject to financial penalties or at worst not get anything back.
Life insurance company responsibilities
If the life insurance policy is in force at the time of your death the company will pay monies due to your beneficiary.
Why take out life insurance?
Life insurance for over 50’s is mainly purchased to either pay for
- to maintain the life style of the family due to premature death
- mortgage protection
- to fund retirement – cash value policies only
- to cover the wages or hiring of help of spouse
- funeral expenses
- to pay off outstanding debts
