Any individual who is aged between 50 and 80 is eligible to take out life insurance for over 50's. It works in a similar way to whole life insurance, although it has no cash-in value should the policyholder stop making their payments. Provided that the premiums are maintained for the full duration of that person's life, the policy will pay out a valuable cash lump sum regardless of the age of death.
The Requirements of Life Cover - Over 50's
It is the best life cover for over 50's because no medical check-up is required. Unlike many policies, there isn't the usual problem with the exclusion of pre-existing medical conditions. The only requirement is that the insured survives for a minimum period of two years. Should the insured pass away within this qualification period, the cumulative value of the premiums will be paid out instead. Some policies will also payout in the event of accidental death.
Life Insurance for Over 50's
The insured pays a monthly premium to a specialist provider for the remainder of their life in order to receive a cash lump sum upon death. Some policies don't require further payments once the age of 90 has been reached. The policy doesn't have a cash-in value so it is important to appreciate that if the premiums cease so does the coverage.
The Payout from Life Insurance for Over 50's
The age of the insured, combined with the fact that it is guaranteed, means that the payment from over 50's insurance should not be compared to a level term insurance policy. As with all forms of life coverage, it is cheaper for women and non-smokers to take out coverage.
- The cost of insuring a 60 year old man for a lump sum payment of £5,138.00 is £25 per month. This takes into account that the amount rises in-life with the Retail Price Index (RPI) and that the insured is a non-smoker.
- A £25 premium will pay out a cash lump sum of £6,474 to a 60 year old woman. The customer is also a non-smoker and any payment is linked to the RPI.
* The above quotes have been provided by Legal and General.
Why Take Out the Best Life Cover - Over 50's?
As a person advances in years, it becomes more difficult and expensive to get life coverage. Although life insurance for over 50's is mainly used to help with the rising cost of funeral expenses or to pay off debts, many seniors also like to leave an inheritance to their grandchildren.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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