There are lots of different types of life insurance but most people take out a policy for one of two reasons. Either to pay off a large debt, generally a mortgage, or to provide for their family after death. If you are over 50 then the chances are you have the mortgage covered so you will be looking for insurance for other reasons. You will probably be looking at a policy that pays a lump sum when you die.
Over 50s life cover generally offers some specific benefits. You may get a guaranteed payment towards funeral expenses for example regardless of how long you have been paying the premiums. You may also be able to claim all or part of the sum before your death should you fall terminally or seriously ill.
It is worth looking for benefits too, over 50s life cover often has guaranteed acceptance without a medical for example. There may be incentives to sign up too. However, it is important to look at the main benefits of the policy and not be too swayed by the extras.
Cover For Couples
If you are a couple then it may seem tempting to take out a joint policy that covers you both. These can be arranged to pay out on the death of either the first or second partner. However, you may find that taking out two individual policies offers better value. Often this will be no more expensive than a joint policy, also individual policies offer more flexibility as they pay out to your estate whereas a joint policy will typically pay to the remaining partner. Plus if a surviving partner on a joint policy wanted to take out new cover they would find it more expensive as life insurance is costlier as you get older.
Other Considerations
When you are looking for a life insurance quote, it is important that you disclose any relevant information as part of the application. This includes any health issues and whether or not you are a smoker. Doing so may mean that you pay a higher premium but failure to disclose could mean that your policy will fail to pay out.
If you know that your estate is going to be liable to inheritance tax then you can take advantage of life insurance to reduce the amount that your family will have to pay. You can set up a whole life policy to cover the amount of the tax liability so that you can be sure it will be paid on your death. In order for this to happen, however and to ensure the policy isn't simply counted as part of your estate, it needs to be written in trust. This is best done with the help of a solicitor or financial adviser to ensure that it is set up correctly. A further advantage is that the premiums paid for the policy will reduce the amount of your estate whilst you are alive thus reducing the tax liability further.
Whatever your age, when you are shopping for life cover it pays to look around to get the best deal, but do make certain that the cover you are looking at meets your needs.
AUTHOR BIO
Bob Cash is a freelance writer and home finance expert he knows that providing for his family is important and has over 50s life cover to ensure they won't be left struggling after his death.
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