Over 50’s life insurance will provide peace of mind and financial protection in the form of a lump sum payment or benefit on your death.
There are many reasons for purchasing a new life insurance policy later in life. You may find that your personal or financial circumstances have changed over time or that you are concerned about leaving something behind for your family or loved ones.
As you age, it can be difficult to find life insurance cover but it is possible and it is important to find life insurance that best suits your individual circumstances.
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Over 50’s life insurance
Specific over 50’s life insurance is a type of insurance specifically for over 50’s who have pre- existing medical conditions that would struggle to find standard life insurance cover.
Specific over 50’s life insurance may also be whole of life insurance which will offer you financial protection whenever you die, rather than up to a certain age or for a certain term.
This can offer peace of mind that you will not leave funeral expenses, or unpaid debts behind for your family or loved ones.
Guaranteed acceptance
Specific over 50’s life insurance has a simplified underwriting process and is typically available without you providing medical information. This is known as guaranteed acceptance.
Guaranteed acceptance allows you to find life insurance cover, even if you have a pre-existing medical condition or you currently have or have had health issues in the past. This may make life insurance accessible to those who may struggle to find standard life insurance cover.
Funeral insurance
Funeral insurance is available which is essentially a form of over 50’s life insurance.
Funeral insurance offers financial protection in the form of a lump sum when you die in order to pay for your funeral and to provide for immediate financial necessities for your family or loved ones.
This ensures that you will not leave anyone who is involved in planning your funeral or any other immediate financial demands after your death out of pocket.
Drawbacks to Over 50’s life insurance
Although being able to access life insurance when you are over 50 without providing medical evidence may be the best option for some there are disadvantages to specific over 50’s life insurance policies.
Some of these are as follows:
Options for purchasing standard life insurance over 50
Standard term life insurance and whole of life insurance may be available to over 50’s, although you may pay slightly more each month for cover.
You may also find that you will be offered a shorter term for standard term life insurance. So if you were to purchase a new life insurance policy in your 20’s you may be able to avail of a term of 40 years, whereas if you purchase a new life insurance policy in your 50’s or 60’s you may be offered a 15 or 20 year term depending on your age on taking out the policy.
Royal London, for example, offers new policies to customers aged up to 85, with term life insurance cover available up to the age of 91.
Whole of life cover may be subject to age limits at the point of purchase but will offer protection until you die, as long as you continue to pay premiums.
Life insurance and pre-existing conditions
Another factor affecting the price and availability of life insurance which may impact over 50’s is the increased likelihood of having a pre-existing health condition.
Insurers use the underwriting process to determine what life insurance cover they will offer new customers and how much they will charge for this cover.
The underwriting process considers the risk you present to the insurer in terms of your mortality. This is based on age and also any pre-existing, historic, or currently presenting health conditions or concerns, as well as your family history.
Depending on your health, insurers may ask you to complete a health questionnaire, provide them with a nurse or GP medical, or ask you to attend an insurer medical.
Underwriting decisions
Based on the results of any medical questions, or medical, the potential insurer may offer you cover at a standard price, at a higher price (a loading), or with exclusions that limit the circumstances under which they would pay the benefit if you die.
Life insurers may postpone a decision on your cover, if you are awaiting test results for example.
Insurers may also decline you for cover on the basis of the underwriting process. If this is the case, this may not mean that it is impossible for you to obtain life insurance.
Insurers vary in their treatment of various health conditions and ailments, as well as other factors such as smoking and lifestyle so it is best to seek advice and shop around for life insurance.
Other factors that affect life insurance for over 50’s
There are other factors that may affect the availability and monthly premium you will pay for over 50’s life insurance.
These include:
Benefits of life insurance for over 50’s
Having life insurance in place when you are over 50 can give you peace of mind that your family and loved ones will be protected financially should you die.
With both standard and specific over 50’s life insurance you may be able to purchase a joint life policy which will pay a benefit if either you or your spouse should die, or a dual life insurance policy will pay a benefit twice should both you and your spouse die.
If you choose, or can obtain, standard life insurance you may choose additional options such as inflation protection, or a conversion option which may allow you to make changes to the policy without providing new medical evidence.
Critical illness cover may be purchased alongside a standard life insurance policy and will provide financial protection if you are diagnosed with a specific illness.
Life insurance for over 50’s may be expensive but, especially if your financial obligations are less than when you or your family were younger and a lower coverage amount would be sufficient, it can be obtained and can also be affordable.
How much is over 50’s life insurance?
Here are some examples of life insurance for over 50’s.
Contact us today
If you are interested in exploring your options for over 50’s life insurance, or you wish to discuss getting life insurance over 50 with pre-existing health conditions, contact us today.
The security of life insurance may still be available in your 50’s, 60’s, and even 70’s.
Fill out our online assessment and our qualified financial advisers will discuss your circumstances and needs with you to find affordable life insurance options for you.
