Don’t buy Over 50 Life Insurance!
Aug 8, 2014
With numerous Over 50 Life Insurance plans on offer, buying life insurance when you are over 50 can be relatively easy but it should also come with a warning; don’t let yourself get automatically sucked into the marketing hype of buying a guaranteed life insurance plan until you have researched all of your options.
Don’t get me wrong, guaranteed over 50s life insurance plans have a place and are right for some people, but not everyone – so it pays to know which side of the fence you sit.
The guaranteed plan is popular because of its simplicity; the ‘no questions asked’ approach means that you simply choose the amount of life cover you need or how much you want to pay on a monthly basis and confirm your payment details. Provided you live in the UK and are between the ages of 50 to 80 (85 with some companies) the plan is yours, regardless of the state of your health. Some plan providers don’t even ask if you are a smoker, the answer to which will often affect your level of cover.
So why shouldn’t you buy a guaranteed life insurance plan?
It makes sense to review all of your options if you are:
• In good health
• A non smoker
• Happy to answer lifestyle & health questions
• Would like a larger cash sum
It’s worth mentioning that ‘good health’ doesn’t necessarily mean you are in training for the ‘Over 50s Triathlon’ or ‘Silver Olympics’ (now isn’t that a good idea!). You could find that your health is classed as ‘OK’ even if you have high blood pressure or suffered from an illness a number of years ago; in simple terms if you are not 100% sure, don’t rule it out.
Guaranteed over 50 life insurance plans were developed to make life easy for anyone who wanted life insurance over 50 and understandably, as a result, insurance companies calculate the risks of offering guaranteed acceptance to all, arriving at a premium for all to pay.
This means that regardless of whether you’re extremely ill or very healthy, you will pay the same monthly premium and your family will receive the same cash sum when you die.
The alternative consideration
If you are looking for guaranteed acceptance, a simple application process with no questions asked, understand the terms and conditions and most importantly are happy with the cash sum on offer, then the guaranteed plan could be the best one for you. However, if you would like at least 40% more life cover for your money, then Regular Whole of Life Insurance could be the answer.
Regular whole of life insurance has a longer application process, which includes questions about your health and lifestyle and there is a chance your application could be refused by the insurance company if you are considered too high a risk, but if you are accepted, the cash sum paid out to your family when you die could be a least 40% higher, in some cases double what you would expect to get from a guaranteed over 50 life insurance plan.
So what have you got to lose by applying for the regular whole of life plan first?
At the end of the day, if you’re application for a regular whole of life insurance plan is rejected, you will still be eligible for the Guaranteed plan so what have you got to lose?
Unfortunately there aren’t many online providers that make you aware of this as few companies offer the opportunity to compare both plans.
High street insurance brokers will most certainly offer you the regular plan as they typically provide advice to ensure they recommend the best plan that fully meets your needs, however most online or telephone providers are only able to offer guidance on the guaranteed plan, resulting in a not so favourable ‘one size fits all’ approach.
That’s where we come in. I’m pleased to say that Over50choices, always proud to stand out, is a little unique in that we offer the chance to compare both life insurance plans in one go.
Whether you prefer to compare quotes yourself using our simple online comparison table or get advice on your options over the phone, the choice is yours. It’s free, easy to use and you can get as many quotes as you like for both types of plan to ensure you get the right cover at the best price.
So should you buy Over 50 Life Insurance?
Providing you have done your home work and shopped around then yes, over 50’s life insurance could be the right choice for you, but if you have any doubts, speak to a high street broker or come to us at Over50choices and we’ll be happy to help.