Reaching 50 years old is, of course, a massive landmark event in any person’s life. Not everything about surpassing half a century on Earth is necessarily glamorous, though. And if you’re reading this, it might be because you’re in the market for life insurance, and you’re wondering what the difference could possibly be between over 50s and standard life insurance.
Regardless of the type of life insurance you purchase, the broad principle will be the same: if, as the policyholder, you pass away during the term of the policy, your loved ones will be able to benefit from a one-off tax-free lump sum. They will be able to use that money as they wish, whether to cover funeral bills, clear debts, or deal with living costs.
So, how does over 50s life insurance differ from this?
As the name suggests, over 50s life insurance is a form of life insurance typically purchased by those aged over 50. There’s normally an upper age limit as well for when you can apply for this type of cover - usually 80, or sometimes 85.
You might assume, from the name, that if you are over 50, dedicated over 50s life insurance will be the only type of life insurance available to you. However, that’s not automatically the case, with over 50s life insurance tending to be especially suitable for people who might struggle to get accepted for standard life insurance.
The fact is, many people find it more difficult to get approved for standard life insurance as they age - even more so if they have health problems. So if, for example, you are over 50 and have a pre-existing medical condition, or would simply prefer not having to answer health-related questions when seeking life insurance, an over 50s life insurance policy could be of appeal to you.
How does over 50s life insurance compare to ‘level term’ policies?
Level term life insurance is a form of life insurance where the policy and amount of cover will stay the same throughout the policy term, regardless of when the policyholder dies; the amount of cover, in other words, is ‘level’.
Level term cover also only runs for a certain fixed number of years, whereas an over 50s life insurance policy usually lasts for the rest of the policyholder’s life.
If you are considering taking out a level term life insurance policy, you can also expect to be asked some basic health questions as part of the process, as opposed to the tendency with much over 50s life insurance to not require any medical information at all.
It’s also important to bear in mind that if you purchase a level term life insurance policy but then pass away after that policy has ended, your loved ones will not be entitled to any payout.
What about the difference between over 50s life insurance and whole of life insurance?
With both of these types of policy, you can be covered from the moment you buy the policy, right through to when you die.
The key differences are that whole of life insurance can be purchased from a younger age than 50, and as with level term insurance, if you apply for whole of life insurance, you will need to provide some basic information on your health and lifestyle.
You are a lot less likely to need to answer such health-related questions if you instead opt specifically for over 50s life insurance. However, this could also have the effect of making an over 50s policy more expensive than some of the alternatives out there.
Would you like to talk to an expert about the possibilities for your next life insurance policy, including whether over 50s life insurance could be the right choice for you? If so, you are very welcome to call our free no-obligation advice and quotation line today, on 01604 436919.