What is an Over 50’s Life Insurance Policy?
Over 50s Life Insurance Plans typically promise a relatively small pay-out, and are generally designed to cover funeral costs. Premiums are usually guaranteed for life, and pay-outs are small (typically between £1,000 and £5,000) depending on what you pay each month and for how long.
However, those buying these policies can find they end up paying far more than the policy will ever pay out when they die, especially if they live a relatively long time. If, for example, you buy a £10,000 policy at 50 and it costs £25 per month, but you live to be 84 years old, you will have paid more than £10,000 into the fund. The problem is that you must keep on paying the policy or you lose cover and you can’t get the money back.
The big advantage of an over-50s policy is that acceptance is guaranteed. You don't have to answer any health questions or pass any medical test.
An over 50s policy is a policy designed to leave your loved ones with a tax free lump sum in the event of your death. This lump sum could be used to pay for funeral costs, household bills or simply as a financial gift for your family.
Over 50s life insurance is available to UK residents aged 50 to 80. With an over 50s policy there is no medical required and acceptance is guaranteed. You decide on your monthly premium and the provider will show you what pay-out to expect. This could be ideal if you’re looking for a life insurance policy where you choose what you want to pay and no medical checks are needed.