Life insurance is a policy that is taken out to compensate the insured person’s beneficiaries upon death. It is wise for anyone to purchase life insurance; not only for the peace of mind that loved ones will be financially stable once an individual passes away but also for guaranteed retirement income. Due to their age and the risks involved, those over fifty may find themselves paying much higher premiums for their cover.
Insurance companies are aware that people within this age group are much more likely to make a claim, however many companies provide over 50 life insurance cover at competitive prices. There are a large number of companies out there wanting to gain custom and so price their policies according to competitors. For this reason it is wise to shop around and gather a large amount of quotes before committing to a cover.
Those people who have poor medical history will be required to pay more on their cover, along with those who are prone to hereditary diseases and conditions. High blood pressure, weight problems and smoking will all be closely evaluated and taken into consideration when quoting for life insurance. As over 50’s are more prone to fatal illnesses, it is understandable that insurance companies are quoting more for their cover.
The types of cover can vary between companies and individuals. The three main policies are as follows:
Option 1 – Level Term
This type of cover is ideal for those who wish to financially support their family after death. A lump sum will be paid to the individual’s beneficiaries once the insured passes away or is diagnosed with a terminal illness.
Option 2 – Decreased Term
Slightly cheaper than the level term insurance, this policy will still pay out a sum of money to beneficiaries, however this amount will decrease over the term of the policy.
Option 3 – Critical Illness
This option covers people financially when they are diagnosed with a terminal illness. Individuals can choose whether they would like fixed or reviewable premium. Although fixed is substantially more money, it can be worth it in the long run. As time goes by, medical and health costs rise, making it harder for people to plan care and attention. Illnesses such as cancer, stoke and Alzheimer’s disease are all included in this policy.
Ensuring that family and friends are well taken care of after an individual dies is of great importance to all, if not most, people. Funeral costs can amount to a small fortune, so preparing in advance is highly advisable.