Hitting 50 years marks the beginning of a remarkable phase in life with plenty to reflect upon and look forward to. Here’s where you begin to enjoy the financial security that you created in your youthful years. Also, this stage offers an ideal opportunity to reassess your old-age goals and make sure you’re on the right path on matters of retirement.
With that in mind, you might want to ask yourself, is it a good idea to take out life insurance at 50? Well, we discuss in detail the over 50s plan which is probably the best life policy for people in the 50-80 age group.
What is the over 50’s life insurance?
This is a non-medically underwritten insurance policy that people aged between 50 and 80 take out in exchange for an assured sum from their insurer upon their demise. By non-medical, it means your health status isn’t taken into consideration and therefore doesn’t hinder you from getting cover.
Additionally, your death benefits help those that you leave behind in meeting costs associated with your passing away such as funeral expenses, mortgage or debts.
Benefits of getting over 50’s life insurance
The biggest benefit of this policy is undoubtedly the absence of medical assessment. Most life insurance covers use your health status as a key factor in risk assessment. To be eligible, all that you need is to be within the ages of 50 to 80.
As with most life policies, the earlier you buy the over 50’s, the better. For example, the premiums are lower while the assured amount is generally higher than if you applied closer to 80 years.
Finally, most insurance companies issue the payout of death benefits as soon as the claim is approved.
Three important facts about over 50’s life covers
The assured amount can be less than the total premiums paid
A major shortcoming of the over 50’s life insurance is that the assured amount may be less than the amount that you’ve paid cumulatively as premiums. For demo purposes, consider the example below:
Imagine you take a cover worth $5000 and you’re paying $20 every month. If you were to live for 21 years or more, you’d surpass your assured amount. Put otherwise, you’d commit more money to the insurance provider than your beneficiaries would receive. But then, remember that there’s a chance you could live for less than 20 years yet the insurer has to pay the same assured amount.
Consistency in premiums payment is key
Making sure that those you leave behind get the full benefits upon your death is important. As such, you have to play your role in the contract between you and the insurance provider. Put simply, ensure your cover remains assured by consistently paying your premiums as they fall due.
Death benefits may not be released immediately
Most over 50’s life insurance policies have a moratorium. This is a waiting period – usually 2 years after purchasing the cover – during which the insurance provider is not bound to release full benefits if death was as a result of natural causes.
Important considerations for the over 50’s life insurance
Whether you’re reviewing an existing cover or buying a new one, here are a few factors to consider:
Type of policy
The life insurance market offers either term or whole of life policy options. For term life insurance, the policy has an expiry date which can be after 10, 20, or even 30 years. The whole of life insurance, on the other hand, lasts as long as you live with a guarantee of cover to those that you leave behind.
Policy benefits
Before purchasing a policy, explore the benefits which the insurer is assuring upon your death. For example, you may only want a cover that takes care of the funeral costs. Another person may choose one that covers not just the funeral expenses but also offers some money to the surviving family members.
Customer support
Consider getting your life insurance cover from a provider that is responsive and reliable. A great starting point may be to go through customers’ feedback and reviews from comparison websites. This enables you to gather the necessary insights into the quality of customer support service available.
The over 50’s life insurance is a long-term commitment going for at least several years. For this, you want to engage a company that is diligent and attentive to your needs.
Do you have any questions or thoughts regarding the over 50’s policy? Share them with us in the comments below.
The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.
