How is over 50 life insurance different from traditional life insurance cover?
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pokerGURU
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
products marketed as over fifty usually dont need to be underwritten which means that if you are in poor health you can at least take out some cover.
But for people in reasonable health even aged over 50, an underwritten "standard" policy will still tend to work out cheaper and will often be more flexible in terms of how long the cover can run and being able to change the cover mid policy.
lots of the building societies promote these plans and often they give you M&S vouchers as an incentive - why? well they can afford to as they are a real money spinner as they are sold on a non-advised basis which means you take responsibility for whether the product is actually suitable.
having said that i have used these products for clients in the past but as a last resort as i have been able to place cover more appropriately using more traditional methods.
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But for people in reasonable health even aged over 50, an underwritten "standard" policy will still tend to work out cheaper and will often be more flexible in terms of how long the cover can run and being able to change the cover mid policy.
lots of the building societies promote these plans and often they give you M&S vouchers as an incentive - why? well they can afford to as they are a real money spinner as they are sold on a non-advised basis which means you take responsibility for whether the product is actually suitable.
having said that i have used these products for clients in the past but as a last resort as i have been able to place cover more appropriately using more traditional methods.
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
This is merely a life insurance plan which is designed to be more attractive to those over the age of 50. It is often a 'whole of life' plan, so the cover will continue as long as you pay the premiums (with no end date), and it is likely to have the attractive feature of no medical questions - but you have to live for one or two (depending on the insurer) more years before benefiting from this point. If you die from natural causes before then, you will not have any cover, though if you die as a result of an accident, it would normally be the case that you are covered.
In other words, the first part of the protection is just accident cover, so is expensive for that. However, for people who would be unable to obtain insurance because of their medical history, over -50's cover could be very useful. Another possible feature of such policies is that premiums may end at a certain age, being free thereafter.
For anyone over 50, the cost and benefits of such a plan should be considered alongside other, normal insurances, so just because you are over 50 it does not mean that such a plan will be best for you. And, of course, before paying out on life insurance, do decide clearly why you need it, how much cover you need, and how long you want the insurance to be in place.
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In other words, the first part of the protection is just accident cover, so is expensive for that. However, for people who would be unable to obtain insurance because of their medical history, over -50's cover could be very useful. Another possible feature of such policies is that premiums may end at a certain age, being free thereafter.
For anyone over 50, the cost and benefits of such a plan should be considered alongside other, normal insurances, so just because you are over 50 it does not mean that such a plan will be best for you. And, of course, before paying out on life insurance, do decide clearly why you need it, how much cover you need, and how long you want the insurance to be in place.
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
As mentioned by Darren and David, there are various companies who try and cater for over 50's as people find that their health alters, which often means a normal term assurance plan would increase the rates due to this, and eventually these plans become ill affordable.
Most of these plans are advertised by Saga, Aviva or Gloria Hunniford in the daytime.
I would recommend that you talk to a financial adviser to ensure you have the right plan for you with the right cover
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Most of these plans are advertised by Saga, Aviva or Gloria Hunniford in the daytime.
I would recommend that you talk to a financial adviser to ensure you have the right plan for you with the right cover
