When you reach a certain age, you may start to wonder whether over 50s life insurance is worth it. After all, if you’ve paid off your mortgage and your children have left home, do you really need to get cover?
In this guide, we’ll look at the pros and cons of over-50s insurance, and help you decide whether it’s the right choice for you.
What is over 50s life insurance?
Over-50s life insurance is a type of whole insurance policy that covers people aged 50 and over. Like any other life insurance policy, it pays out a cash sum if you die while the policy is in force.
The main difference with over 50s life is that it doesn’t require a medical exam. This makes it an attractive option for people who might struggle to get cover elsewhere due to health issues.
Another key difference is that over-50s policies don’t have an expiry date. This means that as long as you continue to pay the premiums, your policy will remain in force until you die.
Is over 50s life insurance worth it?
Whether over 50s insurance is worth it depends on your individual circumstances. Here are some things to consider:
Your financial responsibilities – If you have dependents who rely on your income, over-50s life insurance could be worth it. The death benefit could help them maintain their standard of living if you’re no longer around to support them financially.
Your debts – If you have any outstanding debts, over 50s life could help your loved ones clear them if you die. This could include things like your mortgage, credit card debts, or personal loans.
Your funeral costs – The average cost of a funeral in the UK is £4,271**. If you’re not sure your loved ones could afford this, over 50s insurance could give them the financial support they need.
**Source: SunLife Cost of Dying Report 2019
Your estate – If you have an estate worth over £325,000, your beneficiaries may have to pay inheritance tax on it. Over-50s insurance can help them cover this cost.
As you can see, there are some situations where over 50s life insurance could be worth it. However, there are also some things to consider before you take out a policy.
The main downside of over 50s life insurance is that the payouts are usually smaller than other types of life insurance. This is because over 50s policies don’t require a medical exam, so they tend to be more expensive. Another thing to bear in mind is that over 50s policies have no cash-in value. This means that if you decide to cancel your policy, you won’t get any money back.
So, is over 50s life insurance worth it? The answer is that it depends on your individual circumstances. If you think over 50s life insurance could be right for you, the best thing to do is compare policies to find the right cover at the right price.
What Next?
You could find out more about our Over 50s Life Insurance in our Over 50s Life Insurance Guide.
Now that you’re getting clued up with life insurance the next steps would be to find out how much cover you could get & more importantly how much it will cost.
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