3 Questions To Ask Yourself Before You Take Out Over 50s Life Insurance
by Liz Seyi Digital marketing managerOver 50s life insurance plans
have long been popular in the UK - backed by some pretty iconic advertising. As
the name of this insurance indicates, it is a form of life cover for anyone
aged 50 years old or more. The idea is that as a holder of one of these
policies, you would pay a monthly premium - in exchange for which, a cash lump
sum is paid out in the event of your death.
However, it can be easy to become confused about
this form of life insurance, especially given the wealth of products available
on the market under this banner.
The below, then, aren‘t the only questions
that you will potentially need to ask yourself when contemplating an over 50s
life insurance policy. Nonetheless, they should give you a sound starting point
for ensuring you make the best possible choice for your circumstances.
Do I actually need over 50s life
insurance?
This is definitely a type of protection insurance
that can be much better suited to some people‘s circumstances than to others.
So, you will need to carefully contemplate your own personal situation,
lifestyle and finances in arriving at your choice.
Given that the point of over 50s life insurance is
largely to take financial pressure off your surviving relatives when you pass
away - so that they can cover costs such as your funeral - you are likely to be
a good candidate for this type of cover if you have dependants who rely on you
financially.
Even if your family might already have money put
aside to pay for your funeral, perhaps you have a mortgage or a similar major
financial commitment that your surviving relatives would not be able to cover
in the event of your death? Again, this could make an over 50s life insurance
policy a very good choice.
By contrast, if you‘re single and don‘t have any
dependants, or your partner earns sufficient income to cover their costs if you
were to die, you may not need to take out an over 50s life insurance policy.
How much will an over 50s life
insurance policy cost me?
Naturally, as with other types of insurance, not
everyone who purchases over 50s life insurance will pay the same amount. Various
factors will determine the price of your premium, and not just the chosen cover
amount, which is one of the most obvious things that will drive up the cost.
Age is one such factor, given that the older you
get, the greater your likelihood will be of developing health conditions. Being
a smoker - or even just having used tobacco products at some point over the
last 12 months - will probably add more to your premium, too.
Finally - and worth mentioning despite its apparent
obviousness - the exact cost of your policy will also depend largely on which
provider you choose. With different providers often differing greatly in terms
of features, benefits and qualifying periods, it isn‘t always easy to compare
’like with like‘ on a price basis alone.
How much cover will I require?
We mentioned above that applying for a higher
amount of cover will add to the price of your over 50s life insurance - and
indeed, the amount that you can afford to pay in premiums each month may
largely dictate how much cover you ask for.
But when you are considering what amount of cover
you will require, you will also need to account for such factors as the degree
to which your dependants rely on your income, and any loans or repayments you
still need to make.
As we touched on above, over 50s life insurance can
be a subject of confusion for many people - but it really doesn‘t have to be.
Give our own advisers at QuoteLifeCover.com
a call on 0800 316 6917, and they will be able to clear up that confusion
for you and point you to the options that best match your circumstances and
needs, as part of our free, no-obligation service.
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Created on Jun 30th 2022 06:05. Viewed 87 times.