1. No Medical Questions – Over 50’s Life Insurance is offered on a guaranteed acceptance basis. Provided you are a UK resident aged 50-80, or 85 in some cases, then you can get cover without having to answer any other medical questions. As a consequence, if you are fit and healthy then Over 50’s Life Insurance can be more expensive when compared with medically underwritten Whole of Life Insurance.
2. Faster Payouts – Due to the fact you didn’t need to answer any medical questions, Over 50’s Life Insurance policies can usually pay out very quickly on receipt of the death certificate. This means the money can be used to pay for the funeral as opposed to potential having to wait weeks or months for the provider to process the claim. Currently up to £10,000 can be taken out of an estate for funeral expenses without the need for going through probate so the family receiving the money within 72 hours is not uncommon.
3. Deferred Periods – All Over 50’s Life Insurance policies come with a deferred period, this is the length of time you need to have a plan in place for before the sum assured is paid out on death. Typically this time frame is 2 years but this can be less with some providers.
4. Protected Benefit – With most Over 50’s Life Insurance policies if you stop paying premiums the policy will lapse and you will get nothing back. AIG Life offer a Protected Benefit within their plan once you are at least half way through the paying term. With AIG Life you pay premiums up until age 90 so if you take out the policy at 60 years age the Protected Benefit will commence from age 75. If after this point you were to stop paying premiums or cancel the plan for any reason, your family would get a pro-rata payment on death based on how long you paid premiums for.
5. Compare – Some companies spend big on TV advertising but the product or price often fails to deliver. You will want to check if premiums are fixed or can increase, if you stop paying at 90 or if you have to keep paying for as long as you live and of course compare how much cover you get for your budget. Join 300,000 UK residents who have compared Life Insurance online with SaveOnLife.co.uk –