Purchasing life insurance becomes increasingly important as we age. While no one likes to think about death and dying, having life insurance in place can provide critical financial protection for your loved ones. In your 50s, life insurance can help ensure your family is provided for, debts are settled, and final expenses are covered in the event of your passing. In this article, we’ll compare some of the best over 50 life cover options on the UK life insurance market for the 50s age group.
Term Life Insurance
Term life insurance is one of the most affordable forms of life insurance and a popular choice for the over 50 demographic. With term life insurance, you pay a set premium for a specific period of time, such as 10, 15, 20, or 30 years. The death benefit is paid to your beneficiaries if you pass away during the term.
Term policies for over 50s provide high death benefits without high monthly costs, making term life a budget-friendly option. You can get term life insurance up to age 85 in some cases. The disadvantage is that term life insurance only provides coverage for the set term you choose – it does not offer lifelong protection.
Whole Life Insurance
Whole life insurance provides lifelong protection as long as you keep up with premium payments. Your loved ones would receive a lump-sum payout upon your death, whenever that may occur. Whole life insurance builds up cash value that you can borrow against if needed.
Whole life tends to be more expensive than term life since it offers permanent, lifelong coverage. However, it becomes more affordable in your 50s compared to purchasing it at a younger age. Whole life could make sense if you want to leave an inheritance or have final expenses covered no matter when you pass away.
Over 50s Life Insurance
Specialized over 50s life insurance plans provide coverage up to a certain age, usually around 80 or 85. They tend to be easier to qualify for compared to typical policies since they offer more lenient health requirements. Many over 50s policies do not require a medical exam.
Over 50s life insurance offers a happy medium between temporary term life coverage and pricier permanent whole life coverage. Just be sure to pay attention to the policy expiration age when the death benefit would end.
Guaranteed Life Insurance
Guaranteed life insurance provides coverage for life as long as you keep paying premiums. It does not expire at a certain term or age like other policy types. Guaranteed life plans allow people over 50 to get permanent life insurance, even if they have health issues that make qualifying difficult.
The tradeoff is guaranteed life insurance premiums are quite high compared to term life. These policies also do not build up cash value. But for those who want lifelong coverage and have chronic health conditions, guaranteed life insurance can provide peace of mind.
Final Expense Life Insurance
Final expense or burial insurance provides a small death benefit, usually between $5,000 and $25,000. The funds are meant to cover end-of-life costs like funeral bills, outstanding debts, and probate fees. Final expense insurance has more relaxed health qualifications and simplified underwriting for older applicants.
This type of coverage will not replace your income or support dependents for years. But it can ease the financial burden on loved ones and provide money to cover your last wishes.
Tips for Getting Affordable Rates
- Take care of your health. Insurers offer better rates for healthy individuals without chronic conditions like heart disease or diabetes.
- Quit smoking and vaping if applicable. Tobacco use significantly increases premium costs.
- Shop policies and carriers to compare quotes. Rates can vary widely between insurers.
- Opt for term life over permanent insurance. Term typically offers better rates for over 50 coverage.
- Consider final expense or guaranteed life for health conditions. Simplified underwriting helps those unable to qualify for other coverage.
- Ask about policy discounts. Some insurers provide discounts for home security systems, healthy lifestyles, grouping policies, and paying annually.
Conclusion
Finding affordable, adequate life insurance in your 50s is crucial for protecting loved ones later in life. Compare term life, whole life, over 50s, guaranteed, and final expense options to see which policy type best fits your budget and coverage needs. Shop multiple insurers and utilize discounts to secure the best rates possible. With the right life insurance plan in place, you can enjoy peace of mind knowing your family will be taken care of after you’re gone.
