Turning 55 is a landmark birthday. Everyone teases you that your age is approaching the speed limit and your birthday cake is likely to have a tombstone on it to provide everyone with a few giggles. The reality, though, is that you are not getting any younger and if you do not have life insurance yet, time is running out on reasonable rates.
Isn’t it time you started shopping around for the best over 55 life insurance policies for your needs and budget?
Instead of looking at standard life insurance policies, age specific policies can be more budget friendly. Instead of evaluating everyone on a case-by-case basis, the insurance providers use the mean of the age bracket to develop their policies.
No Medical Underwriting Required For Life Insurance Over 55
One of the major benefits of an over 55 life insurance policy is the fact that you will not need to have a medical exam. With acceptance being guaranteed, even those with health problems are able to secure a policy. In addition, most providers will continue to offer guaranteed coverage through the age of 75 and sometimes longer.
While acceptance is guaranteed, there are some factors taken into consideration that will affect the premiums. For instance, the amount of cover that is needed, whether or not you are a smoker or non-smoker, and your current health.
One condition to be aware of is the fact that virtually all of these policies will have a “no pay” term. This is a period of time that must pass between the first premium payment and the eligibility for a benefit payout. This period can range up to 24 months, so be sure to check the fine print before signing a contract.
However, if the insured were to pass before this period is exhausted, most companies will return the premiums paid to that point in lieu of a benefits payout.
Are There Drawbacks At All?
As everything in life has its positives, there are some negatives as well. As stated above, there is generally a blackout period during the early stages of the contract. However, most of these policies will pay out benefits if the death was an accidental death and not caused by health issues or a suicide.
Policies such as this may have higher premiums and added restrictions to them. This is, unfortunately, common for insurance policies where no medical exam is required. Because these policies are more expensive, you will want to shop around for the best price to make sure you do not end up paying more in premiums over the life of the policy than the policy is actually worth.
When premiums cease to be paid, the covered loses all benefits and forfeits all premiums paid to that point. A policy such as this has no payout value other than if the covered is deceased. If you want a policy that has a payout in circumstances such as this, you would need to look at whole of life policies.
Benefits of Over 55 Life Insurance
The fact that you do not have to take a medical exam is a significant perk for many people, especially those with some type of health condition. Individuals such as this find that they often save significant money over traditional life insurance policies (whereas a completely healthy person may risk paying higher premiums).
Peace of mind can never be overrated. Having a policy in place for your children or spouse can make life after your death much easier on them, especially if your salary is the only salary in the household. To find out just how much cover you should secure, continue below to our Decision Making section.
Making The Right Decision
The first decision to make is whether you want whole of life or a term life insurance policy. A whole life policy has no expiration date but premiums are significantly higher. However, this type of policy is also often considered an investment as the policyholder can cash out the policy without having passed away.
A term policy is only good for a stated amount of years and will have no cash value for the holder once that period expires.
The next decision is exactly how much cover you will need. There are many considerations in figuring out the proper amount of money.
Some of them are:
• Mortgage
• Secondary Medical Care
• Continued Educational Costs
• Burial Costs
• Household Bills
• Childcare
• Inflation
While some of these costs may fall off over the years, there are likely other costs to consider. For instance, right now you may have a automobile loan as well as a mortgage. Both may be paid off in ten years, but your spouse may require home nursing care or some other type of medical care.
You should literally sit down with a pen and paper to consider not only your costs today, but future costs as well as accounting for inflation over the years before deciding on a final cover value.
Comparing The Policies…
In order to get the best policy, you will need to compare prices from multiple providers. We provide a comparison tool right on the website to help you narrow down your choices. You can also contact us online or via the telephone to help you compare prices.
In addition to price comparison, you will want to look at the terms of the policies before making a decision. For instance, there may be a policy that costs £15 less per month but it may have an extended blackout period.
If you need more assistance, we have a team of insurance experts on call to assist you.
Please note that we are not financial advisors; we merely present the various options that fit within your specifications for you to make a more educated decision. You are free to take this information and present it to your financial or investment advisor before making a final decision on your policy.
Claybrooke realises this is a significant decision and we want you to take your time until you are completely comfortable with your policy. This is a decision that will offer both you and your family peace of mind for many years to come, so we want you to make it carefully. Please feel free to contact us via phone or our online contact form if you have any questions or concerns regarding over 55 life insurance cover.