Life Insurance For Over 50s – An Overview
Over 50s life cover is a special kind of permanent life insurance cover for any person aged over 50 years. The premium payments are usually paid either annual or monthly and as long as premiums are up to date, then the cover is sure to still pay out if you die. However there are many factors that you have to take into consideration before settling on one company. Some of these are the level of your medical problems, your age and the amount of money you want to borrow against your cover. Here we look at how to get the most from your over 50s life insurance.
Before you apply for this cover you need to do some detective work to find out about the various life cover products available to you. Research extensively among the various insurers and find out who has the best offer with whom you can be sure that you are making the right choice. Your choice will also depend on whether you want a temporary or permanent life cover. Temporary life cover can be useful in situations where you undergo treatment regularly for cancer, diabetes, high blood pressure, heart conditions and many such health conditions. You can sell your temporary life assurance and take the lump sum payment from your insurer.
In case you have many insurance policies like yours with many companies, then getting a quote from all of them is a good idea. Ask for a variety of discounts and other sweeteners by the insurers. An experienced underwriter will be happy to do this for you. You can get your quote’s done free of cost.
If you choose permanent insurance then you will have a fixed premium amount for the entire lifetime. This is what the insurance company refers to as the cash value of the plan. The cash value of the cover is calculated taking into account the present value of future premiums. If you have taken an insurance till date that covers most of your medical expenses, then you should probably be offered a good deal by the insurer.
There are a number of factors which determine the cash value of the life policy. These include your health conditions as well as your age at the time of application. Your medical expenses have been included in calculating the premium amount. The older you are when you apply for insurance, the higher will be the premium rates. However, it works the other way around – the younger you are when you apply for the cover, the lower will be the premiums.
In addition, there are some other factors which affect the cash value of the cover. These include the amount of death benefits, co-payments required and the excess that you are asked to pay for each claim you make. You can opt for a policy with little death benefits and higher excess. This way, you can pay lower premiums. On the other hand, if you want to pay high premiums and take less death benefits, you can choose a policy with a lower excess.
One thing that you need to keep in mind is that all the policies provide similar coverage. Therefore, the only difference between the different types of Life Insurance is the cash value or face amount provided. The amount of cover and premiums payable depend on the individual circumstances of the cover seeker. Some people may require a more extensive cover than others. They may also find it necessary to make a claim early in life and be able to get a good cash value for their policy. For these, they may need to take into account the fact that their age may lead to premature death and may also reduce the amount of time allowed to accumulate a cash value.
It is advisable to talk to a qualified life insurance advisor who can advise you on the right type of insurance for your circumstances. Since Life Insurance has a number of facets, you may need a professional’s advice in order to select the best one. You will be required to make a number of decisions, some regarding the premium and some about the type of insurance. So you need to be clear about what you want before buying anything. An advisor can help you make these decisions.