One of the caveats of waiting to purchase life insurance until later in life is that the premiums start to go up significantly once a person is over the age of 50. However, because life expectancies are on the rise, some companies now offer life insurance for those over 50 plans for this specific age group with more reasonable rates and terms.
Simply put, it is now easier than ever to find affordable life insurance at an older age.
Insurance companies have realised that there is a significant amount of the market that has not secured life insurance to this point.
Instead of having premiums based on one individual, they have created programs that enable them to develop policies based on the entire population in this age group.
For the individual looking for a policy with subpar health, you are still eligible for the same rates as a person in perfect health.
For most of these policies, there is no medical underwriting required
In addition, the premium offered is often guaranteed for the life of the policy. Furthermore, you will never have to get a medical exam for the term of the insurance policy. In most cases, the policyholder is guaranteed renewal up to the age of 75 and sometimes much longer.
As long as you pay your premiums, the policy will pay benefits to the beneficiaries as long as the death does not fall into an exception, such as suicide or alcohol and drug abuse. It is important, however, to remember to keep payments current, as any missed payment is considered a default, making the policy null and void.
While there is no medical exam required, there are still considerations when it comes to the final price of the premium. Factors such as gender and smoking can increase or decrease the cost of the policy.
Considerations When Securing A Policy
Policies often have an exception clause where they will not pay out during a specific time period at the beginning of the policy. For instance, the company may stipulate a new life insurance over 50 policy is not available for benefits payout until 365 days have passed. If, however, during this time period, assuming premiums have been paid and are up to date, the insured is to die, premiums to this point are often returned to the beneficiaries.
Because medical underwriting is not a part of these policies, the premiums are often more expensive than a traditional policy. Because of this, for someone securing a policy at the age of 50 and living into their late 80s or 90s, premiums can sometimes exceed the actual value of the insurance policy itself.
Policies can be cancelled at any time, but the insured will then forfeit their rights to both the benefit payout as well as all previous premiums paid. For this reason, it is important to examine all aspects of the insurance, its clauses, and benefits before signing the contract.
Why Should You Buy This Type Of Cover?
While there are some negative aspects to the policies as listed above, there are still considerable benefits for most individuals. The largest of these benefits is in providing peace of mind to you and ensuring the financial freedom of your loved ones.
Age specific life insurance policies such as this offer guaranteed acceptance for the term of the policy. This means you have no worries in the future about securing a life insurance policy regardless of your health or age.
Your loved ones will not have to face any medical hardships for burial. By building this cost into your policy, the life insurance over 50 policy will cover the costs and allow them to keep their savings intact.
If the policy is secured at a younger age while you were still earning a salary, the payout can be structured so it covers your income to help your spouse or partner pay for everyday bills, such as the mortgage, auto insurance, auto payments, etc… In essence, this policy takes your financial place while your partner or spouse is able to secure his or her own paycheck.
Important Factors for You To Consider…
How much coverage is needed is a question everyone asks before shopping around for his or her coverage. This is not a decision that should be taken lightly as there are numerous factors that will dictate the final value of the policy.
• Current and Future Salary – are you the primary breadwinner for the family? If your salary is the sole source of income, you will need to project how much money your spouse will need in order to either re educate himself or herself to be able to enter into the workforce or to survive until his or her own passing.
• Inflation – £100,000 will not hold the same value in ten years as it does today. In order for the policy to have the proper cover, you will need to estimate inflation over the term of the policy to ensure the cover value is based on “tomorrow” instead of today.
• Burial Costs and Inheritance Tax – these are two costs often overlooked by someone seeking cover. Burials today can cost as much as £10,000 or more. If the payout is going to be subject to inheritance tax, it will decrease the money going to the beneficiaries even further.
• Mortgage – you will want to make sure there is a roof over your family’s head, so factor the cost of the mortgage into the overall coverage.
• Assisted Medical Care – will your spouse need additional at-home care once you are gone? If so, the cost of this care must be factored into the final cover amount.
Costs such as these can add up rather quickly, so you must make sure you take your time and look at all expenses before deciding on an actual cover amount for your policy.
Compare Rates for the Best Over 50 Life Insurance Policies
Claybrooke offers a various methods for you to compare over 50 life insurance policy rates to find the best coverage for your budget and needs. Start by using our online quote form and we’ll narrow down your selections and then contact you to discuss your options.
If you find that do not want to use the Internet for something as important as this or simply do not like to use computers, our team of experts will be there to help you. Our offices are open Monday through Friday as well as offering limited hours on Saturday. If you call when all lines are busy or during our off hours, simply leave a message and we will have someone call you at the next available opportunity.
The bottom line is that Claybrooke has one goal…to make sure you get the policy you want and need. Securing a proper life insurance policy is a major decision that will affect your life now and in the future. Today, it affects your budget, but tomorrow if affects the well-being of your family.
It will be one of the most important decisions you make regarding your family’s future and we will be there every step of the way to make sure your decision in the right one!