Getting the Most From Life Insurance Plans Aimed at the Over 50s

Your family is the most important part of your life. Memories you make with loved ones last long after you are gone but, as you grow older, what your family will do after you are gone can become a real concern. Life insurance is an increasingly popular way of ensuring your family’s financial security, covering your children’s education or simply dealing with funeral costs.If you’re over 50, there is a huge range of over 50s insurance products to choose from.The BasicsOver 50s life insurance has become popular for a number of reasons. More and more people are living longer, which means life assurance products have increased in both availability and affordability. If you’re thinking about taking out an over 50s policy, keep the following points in mind:Over 50s policies are available to anyone over 50 years old – no medical is required to determine eligibilityThe premiums you pay over the duration of your policy remain fixed. Payments are normally around £8 to £30 per month.In the event of your death, an over 50s policy guarantees a pay out of a fixed cash sum.Although the over 50s policies guarantee a pay out if you die, inflation will decrease the value of that amount. Although no medical is required, most companies will restrict policy holders with existing medical conditions such as diabetes or blood pressure problems.The RisksYour over 50s plan lasts until you die or reach 90 years of age. When you turn 90, your premiums cease but you’ll remain fully protected. The longer you live, the more likely the eventual payout your beneficiaries receive will be less than the amount you paid in. If you opt out of the plan, or stop paying premiums for whatever reason, you’ll receive no returns whatsoever.What are my options?Choosing the right plan can be difficult. You can make an informed choice by getting as much information as possible on the different products on the market:Fixed assurance plans: an agreed cash amount payable to your beneficiaries when you die.Increasing assurance plans: to account for inflation, the final payout increases over the duration of the plan.Funeral cover: if funeral costs are your main concern, this type of plan will cover those associated costs upon your death.Critical Illness cover: covers expenses and the financial burden should you be seriously injured or diagnosed with an illness.Term assurance: life cover over a fixed term is also available for the over 50s. Rather than taking out a policy for the duration of your life, a fixed term protects you over a pre-arranged time period.Like any big financial decision, the more information you have, the better. Consider which policy is going to deliver the security you want for your family and consider talking to a financial advisor before you move forward.

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