When you purchase any kind of life insurance, whether it’s over 50s life insurance or a different kind of policy, you’re effectively buying peace of mind that when you die your loved ones will be provided with a cash lump sum.
This can be put towards anything they want, so it could be used to clear debts, cover living costs, or to pay for your funeral bills. However, over 50s cover has several distinct differences to other kinds of life insurance.
Here’s what you need to know.
You don’t need to provide any medical information
You won’t be asked any medical questions when you apply for over 50s life insurance, although there may be certain eligibility criteria you need to meet, such as being a UK resident. As long as you meet these and are aged 50 or over, you’re guaranteed to be accepted regardless of any medical issues you might have, although there is usually a maximum age limit which will vary depending on which provider you go to.
When you apply for other kinds of life insurance, however, you’ll usually have to answer a few questions about your health, and depending on the answers to these questions you could be declined cover.
Cover will last your lifetime
When you take out over 50s cover, the policy will last for your lifetime, so you must commit to making payments every month until a specified date, or with some policies, until you die.
If you die a few years after taking out the policy, then your dependents could end up with a lump sum that’s worth far more than you paid in. The longer you live, the greater the chance you could end up paying in more than the lump sum that’s paid out.
Other types of life insurance often last for a set term. For example, many people take out life insurance specifically to cover their mortgage payments if they die, so they’ll take out a policy which lasts for the same length of time as their mortgage. If they die during the plan term, the payout can be used to pay off the mortgage.
There’s also ‘whole of life’ cover, which as the name suggests, will cover you for the whole of your life, so that your dependants will receive a payout regardless of the age at which you die.
It differs from over 50 life insurance in that you will usually be required to do a medical, and the minimum age at which you can take out cover is lower.