But as you near your middle age and into your 50s, however, making those plans for your future is likely to become more important than ever, as you prepare for many years of retirement, your death and the legacy you hope to leave to your family and loved ones.
In all of this, life insurance over 50 years of age takes on a special importance.
What is it?
Over 50s life insurance is a specially designed financial product intended – quite appropriately – for those aged 50 years and over and is typically available for anyone up to the age of 80 to buy.
It is important for a number of reasons:
- in return for your payment of a regular monthly premium, it guarantees a fixed cash settlement when you die;
- this is paid to your designated beneficiaries, who may choose to spend that money as they see fit;
- it might be used to help pay off any debts or outstanding credit card balances you have left behind;
- it might form part of any financial legacy you want to leave to your family; or
- one of the most popular purposes of over 50s life insurance is its use in helping covering the costs of your funeral – an expense which you might think it unfair to burden your surviving loved ones and an expense which continues to rise at an alarming rate.
How easy is it to buy?
Life insurance for the over 50s is one of the easiest types of life insurance you may buy:
- acceptance of your application is guaranteed;
- you do not face the medical examination or exhaustive questionnaire that may be required by other types of life insurance;
- you may choose whatever amount you consider necessary for the final cash settlement;
- premiums are fixed at the same amount each month – and in most cases, may be as low as just a few pounds.
Important points to bear in mind
When deciding to buy life insurance for the over 50s, it is important to remember that you are entering a long-term commitment:
- premiums remain payable every month for the remainder of your life (or until you reach the age of, say 95, depending on the particular insurer you choose);
- if you default on any premium payments, the cover ends and there is no cash-in value of the policy or refund of payments you have already made;
- because you are going to be paying the premiums over an indefinitely long-term period, there is the possibility that you pay more in total premiums over the years than the policy eventually pays out upon your death;
- you choose the amount of your death benefit settlement at the very start of the policy and its value in real terms may diminish over the years, through the effects of inflation – if you had intended the sum to cover funeral costs, therefore, bear in mind that there may still be some expenses to bear;
- the guaranteed, lump sum cash settlement on your death is paid to your chosen beneficiaries, who are free to decide to spend the money however they see fit – although most are going to respect your last wishes, of course, if you expressed an intention of it being used for your funeral expenses.
Keeping these considerations in mind, you might see how important it may be to leave a financial legacy of some form when you die and how easy and simple it is to arrange over 50s life insurance.