Life insurance may seem to be confusing, especially when one decides to look into it in the later years of life. The life insurance for the over 50s is created in such a way as to provide a smoother experience – however, despite that, quite a number of people still have questions before they go ahead and take out a policy. Below are the top 10 FAQs with the simplest explanations.
What is Over 50s Life Insurance?
This is a life insurance policy that covers all aspects of your life and was made for individuals between 50 and 85 years old. The policyholder pays a set monthly premium, and the beneficiaries are given a sum of money after their death.
Do I Need a Medical Exam to Apply?
No. A major advantage is a certainty of acceptance whereby no medical checks or health questions are required.
How Much Will It Cost?
Your age and the amount of cover selected mainly determine the premiums. The majority of the plans can be started at only a couple of pounds per week, so it is affordable for most people.
How Much Will My Family Receive?
The amount given in return is normally small (most times from £1,000 to £25,000). The plan is principally meant to cover the death expenses or to provide a small monetary gift.
Can I Stop Paying My Premiums?
Cover normally stops if the payers premiums are discontinued and there is no money given to the family. It is worth mentioning that some companies, such as Sun Life, provide contracts which end fully paid up after a certain age.
Is the Payout Tax-Free?
Usually, payouts from life insurance are nontaxable. But in a case where your estate is extremely large, inheritance tax might be levied.
Can the Money Go Directly to Funeral Costs?
It is. The insurance companies allow you to install your policy as a funeral plan so that the money will be paid directly to cover the funeral costs.
What Happens If I Live a Long Time?
If you will live for a very long time, you might have paid more in premiums than the payout. Consequently, it is advised that this kind of insurance be taken by people who are primarily concerned with funeral arrangements and donating a small amount of money.
Who Should Buy Over 50s Life Insurance?
It is primarily the best option for:
- Individuals wishing for assurance of coverage.
- Those suffering from ill health who have been discouraged by traditional life insurance.
- People who would like to remove the hassle of funeral or death costs.
10. Which Companies Offer Over 50s Life Insurance?
The topmost reliable companies are Sun Life, Aviva, Legal & General, and Royal London. It is always recommended to review the plans before making a decision.