If you are over 50 then your life insurance is a something you have to not just have but also have it sewn up all water tight. This is especially so, if your family is dependent on you.
So making a well informed decision will really benefit all your loved ones. But let’s get one thing straight, you don’t have to wait to be 50 to get life insurance. Life insurance is something you have to invest in as soon as you start working. But at 50 you should really evaluate and see if you have the best life insurance policy.
Best over 50s life insurance
There are a number of online comparison tools which will enable you to get the best possible quote.
You will have to remember that not all the policies for over 50s life insurance are the same. If you choose well, then your family will benefit in the event of your death and if you choose badly then your family will be poorer for it.
When you start trawling online for life insurance for over 50s then you should start your search with “term insurance”. What this means is, that when the insurer guarantees to pay out the policy in the event of death within a specified period. However, you will get no benefit if you outlive the policy!
This is the most affordable life insurance ; policies range from one year to a few decades. Life insurance for men is more expensive because of age expectancy and life style habits such as smoking.
The types of level term insurance you can opt for are increasing term insurance, decreasing term insurance, convertible term insurance and renewable term insurance.
What is level term insurance? Level term insurance is a policy which is paid on death and the payout will remain the same right through the policy. At the end of period, the policy will expire and will have no value, at all.
Increasing term insurance policies increase by 5% a year or in line with inflation. This is useful if you plan to insure for the long term. The other side of the coin is the decreasing term insurance in which the level of cover decreases each year until the policy becomes zero. This kind of cover is mainly used to back up loan repayment.
Then there is the convertible term insurance where you can convert your existing term insurance policy to whole life or endowment policy. The best part about this policy is that you will not be refused a policy even if your health is not good. The premiums will be high, at least 105 higher than basic polices.
The renewable term insurance policy is one where you can renew your existing policy when it expires.