​Does life insurance get more expensive over 50?

Collaborative Post | ​If you are over 50 years old and want to protect your family’s future, you should probably consider taking out a form of life insurance. Doing so should mean that when you pass away, your family should receive a sum of money to make their lives easier and pay off existing debts of financial obligations. There are many forms of life insurance and different types of policies to choose from, so it is important to get good advice from a respected life insurance specialist that understands your needs. Most insurers offer life cover for UK residents over 50 years old. Beyond 80 years old it may become more difficult  and there is a guarantee that you will not be accepted by those companies when you take out this insurance, no matter what your health issues are.

Does Life Insurance get more expensive over 50? (Photo by Jonathan Pendleton on Unsplash)

How does Over-50s Life Insurance work?

​When you are 50 years old or older, you should take out life insurance. According to Forbes.com, you have to make financial planning moves when you turn 50. Although it is hardly the most cheerful of topics, you have to prepare for what happens if you pass away.

Standard life insurance is a kind of insurance product to protect the finances of your loved ones in case you die during the term of the policy. You can take out standard life insurance from 18 years old. If you take out life insurance, you have to pay a monthly premium within the specified term. The cost of life insurance varies depending on the insurer, the type of policy you select, your age, and your personal circumstances. According to various online publications the average price of life insurance in the UK is between £5 and £30 per month. In most cases, the younger you are, the cheaper the cost of life insurance will be.

Over 50 life insurance is specially designed for people over 50 years old.  Unfortunately as we get older, there is a greater risk of us passing away or becoming seriously ill – so this may impact the way an insurance company calculates associated risk. Many insurers state that they will guarantee acceptance but be aware that the premiums you pay each month could be prohibitive.  

When you decide to apply for life insurance, you can either go direct to an insurer or use a broker to help you find the best policy. There are no right or wrong ways to find a life insurance policy, but if you are not confident speaking about financial products, or find them confusing, it is worth getting some advice from somebody you trust.

Your insurer will likely want to know about your financial circumstances, lifestyle and medical history so they can determine if you are likely to live a long time or not.
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Once they have the details they need, they will either come back to you with a quote or ask for further information.

Once they have all the information they need, you simply agree to the policy and setup your payment process – usually direct debit.

Benefits of over 50s insurance

It's never too late to start thinking about your future. Getting over 50 life insurance policies is one of the best ways to protect your family if you pass away. Not only does it provide financial security for your loved ones, but it can also help you avoid financial strain in the event of an untimely death.

There is also (usually) no income or capital gains tax to pay out on a life insurance policy. But Inheritance tax (currently at 40%) does apply to any estate over £325,000. If this is a consideration, one option is to place your life insurance policy into trust.

Is over 50s life insurance worth it?

According to Citizens Advice, you should seek financial advice if you are unsure about your financial planning. Before taking out an over 50s life insurance, you may need to consult with a financial advisor. The advisor will help you evaluate your financial situation and determine whether or not you should purchase an over-50 insurance policy. They will also be able to advise you about things like placing your policy into trust.

When you hire a financial advisor, you should consider the following things:​

• Check the qualifications of the financial advisor. Make sure that he can give you the advice that you really need.
• Answer all questions honestly. The advisor will provide you with some advice based on your answer. If you do not provide honest answers or hide important information, you may not get the best advice.
• Ask as many questions as you need. This way, you can make sure that you understand what the financial advisor told you.
• If you are not satisfied with the financial advice, you can try to ask for a second opinion from other financial advisors.

If you have extensive savings and no outstanding debts or obligations, you may feel that taking out a life insurance policy may not be worth it. Just make sure that you can afford to pay the monthly premium because the insurer will not refund your money if you stop paying or cancel the insurance policy.

Over 50s life insurance - summary

If you want to provide security for your family and loved ones when you pass away and do not have extensive savings to pass on, life insurance can be a sensible way to provide your family with adequate financial protection.
 
The amount you pay each month will depend on many factors and it is important that you understand the terms and costs of your policy. If you are unsure, always seek financial advice.

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Disclaimer: This is a collaborative post.