With so many plans on offer, it can be difficult knowing which way to turn when it comes to choosing the best over 50s life insurance; after all it’s not the most exciting thing you are ever going to buy is it. It’s not as compelling as researching the latest hi-spec tv or as exhilarating as deciding on your next holiday; let’s face it, we’re talking about death here aren’t we, yippee!
The thing is life insurance can be a great buy when you consider the consequences of having nothing in place, so it is imperative that you make the right choice.
That’s where I can help. My 10 tips for choosing the best over 50s life insurance will help guide you through the process, highlighting some of the things you may want to think about before making your decision. Food for thought as they say.
Not as exciting as a tv maybe, but certainly far more important
1. Get at least 40% more life cover
If you are in good health and happy to complete a lengthier application process that includes health and lifestyle questions, then you could get at least 40% more life cover with a regular whole of life insurance plan.
It works in a similar way to guaranteed over 50 life insurance but could pay a much larger cash sum if your application is accepted.
2. Benefit from cover sooner
All guaranteed over 50 plans have an initial period where you are not covered for the full cash sum. Some companies agree to pay the full cash sum after just 12 months whereas others provide cover after two years.
If you were to die during this initial period, all providers refund premiums already paid and in some cases a little more.
3. Smokers beware
Some over 50 life insurance providers don’t question whether you smoke and therefore offer the same rate of cover for both smokers and non smokers. As a smoker it may be worthwhile seeking one of these companies out as they could offer a greater cash sum.
4. Reward for non smokers
On the flip side, those companies that question smoking status will offer preferable rates for non smokers so do shop around.
5. Don’t pay for life
Although some over 50 life insurance providers require you to pay your monthly premiums for life, with others you only pay monthly premiums until your 90th birthday. Quite simply your payments will stop but your cover will continue.
6. Free cover for help with funeral costs
Most over 50 plan providers offer a free funeral benefit option. You agree for your cash sum to be paid directly to a specified funeral director in return for free additional life cover (usually around £250 or 10% more).
When the time comes, the funeral director will provide the funeral service using the proceeds of your cash sum to help pay the funeral costs.
7. Keeping up with inflation
Guaranteed over 50 plans offer fixed monthly premiums and a fixed cash sum which means the value of the life cover will be reduced by inflation over time.
Some people like the simplicity of this as they always know where they are in terms of budget however if you prefer life cover that keeps in line with inflation, increasing options are available with some companies.
8. Cover for terminal illness
Some over 50 life insurance plans pay out the full cash sum if you are diagnosed with a terminal illness. There may be some differences in how the money is paid so make sure you read the terms and conditions if you are interested in this feature.
9. Look out for additional perks
A number of providers offer addition perks to customers such as discounts on other insurance products or free elderly care advice and support. Your decision to buy should be based on the life cover provided so don’t be swayed by the ‘bells and whistles’ but this could be something worth looking out for.
10. Compare, compare, compare
The only way you can be sure of getting the best over 50 life insurance plan is by comparing quotes. It’s free, quick, easy to do and could mean extra life cover!
Now you are armed with your tips, it may help to take a look at our over 50 life insurance reviews for a more detailed view on what each company has to offer, or find out more about how you could benefit from extra life cover.
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