As we grow older, it’s only natural to want to plan for the future with the best interests of your loved ones in mind. Investing in over 50s life insurance is an effective way to provide financial security for your loved ones and ease their worries during a difficult time.
However, if you’re thinking about purchasing a policy, there are several key factors you’ll need to consider beforehand. Understanding your coverage options, and comparing premium costs and payout amounts are all key factors that will help you select a plan that best suits your needs.
Being aware of any waiting periods or exclusions in the policy will give you a clearer picture of what’s covered and when, and help you make a practical choice. Taking the time to evaluate these aspects can help you make an informed decision and ensure your family receives the payout they need.
How Over 50s Life Insurance Works
Before you invest in over 50s life insurance, you need to understand how it works. Over 50s life insurance provides your family with a lump sum that can be used to pay towards funeral costs, settle outstanding bills, or even serve as a gift. You can also choose to customise your policy by selecting the payout amount and monthly premiums.
Things To Consider When Applying for Over 50s Life Insurance
Before applying, it’s crucial to consider a few important details about the policy to ensure it aligns with your needs.
Let’s take a look at some key factors you need to consider:
1) Understand the Coverage Options
Before purchasing Over 50s life insurance, you need to take the time to understand what is and isn’t covered.
Some policies may only pay out for funeral costs, while others, like National Friendly’s Over 50s insurance, offer more flexible payouts that can be used for various expenses, such as bills or gifts for your loved ones.
Understanding the coverage options beforehand will help you ensure that all your insurance needs are met.
2) Don’t Delay
Generally, the earlier you buy your insurance, the sooner you can lock in your premiums. What’s worse is that waiting may result in higher premiums as you age. By starting earlier, you can keep your premiums lower and ensure more manageable payments over time.
3) Know the Payment Terms
When it comes to insurance, you need to have a clear understanding of how much you will be paying each month and for how long. Some policies have fixed monthly premiums, while others may increase over time. When applying, you need to ensure that the premium is affordable and fits comfortably within your budget.
4) Check the Policy’s Waiting Period
Many Over 50s policies include a waiting period, typically lasting 12 to 24 months, before a payout is made. However, in the unfortunate event of your passing away during this time, your family may not receive the full benefit.
That’s why it’s essential to review the terms regarding the waiting period and understand exactly how it might affect your coverage.
5) Consider the Payout Amount
When applying for over 50s insurance, you need to think about how much you’d like to leave behind. While Over 50s policies usually offer a fixed sum, you need to balance the desired amount with what you can afford.
You also need to consider inflation, as the costs of funeral services and other expenses may rise over time. For instance, in 2024, the average cost of a funeral in the UK is approximately £4,706.
6) Avoid Unnecessary Add-Ons
When you’re purchasing over 50s insurance, you may notice that some providers offer additional add-ons or riders, such as critical illness coverage or accidental death benefits. While these can be beneficial in certain situations, ensure you’re only paying for the coverage you truly need.
Overpaying for extras can make your policy less affordable. For example, our provider’s Over 50s life insurance includes a double payout in the case of accidental death as part of the standard offering.
7) Ensure Your Beneficiaries Are Up to Date
One more key aspect to remember is keeping your beneficiary details current. If your circumstances change—such as shifts in family structure or relationships—ensure the correct person is named as the beneficiary to avoid complications when the policy is paid out.
8) Consider the Impact of Your Health
While most Over 50s life insurance policies don’t require a medical exam, your health can still affect your premiums. In fact, some providers might charge higher rates based on your medical history or lifestyle choices. That’s why, you need to be honest about your health when applying, as this can help prevent complications later on.
“When I talk with clients about over 50s life insurance, I always remind them that it’s not just about getting a policy—it’s about making sure your family is taken care of. Taking the time to understand your options and what fits your family’s needs can make all the difference. It feels good to know you’ve got a plan in place for your loved ones!” —
Martin Clements, Over 50s Life Insurance Expert at Zenco
At Zenco Legal, our provider’s Over 50s insurance policy includes on-demand Friendly GP services and provides access to virtual consultations and 24/7 telephone support.
We understand that facing a terminal illness can be quite challenging. To provide you and your family with some financial relief during this difficult time, National Friendly’s policy allows you to receive half of your payout early post-diagnosis. The remaining balance is passed on to your loved ones after your passing.
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