Ideally, getting a life insurance is most recommended while you are young and healthy. However, not everyone realizes this need when they’re on the prime of their lives. If you failed to secure a life insurance policy when you were younger, an over 50s insurance can be your best option if you’re starting out late.
Why Obtain an Over 50s Life Insurance?
You should consider getting an over 50s life insurance policy for three good reasons. First, it can give you peace of mind that your dependents will be able to maintain standard of living. It helps ensure that if you are to pass on, they’ll have something to use for basic living expenses and for any debts that you have to leave behind. Second, over 50s insurance can be used to cover for any remaining medical or funeral costs, so your family won’t have to be burdened. Third, over 50s insurance can provide a lump sum cash benefit, which may serve as a good form of inheritance for your remaining family.
How to Compute for the Amount of Cover?
If you made up your mind about over 50s insurance, make sure to purchase the right amount of cover that you need. Both under buying or over buying can cost you, so always figure out how much you need. Determine if you need coverage only for a specific period or for life.
Over 50s Life Insurance Considerations
Always check the policy’s terms and conditions. As with any other types of insurance, even though certain policies will have standard rules, they will always have differences in the terms and conditions. They may differ in the maximum amount of payouts, or the guaranteed amount of death benefits. Some may also reduce cover annually, while some may link the payouts to investments. Make sure to read the terms and conditions very carefully and ask questions if you’re in doubt about anything.
Check the age limit. Some insurance policies may limit the maximum upper age limit for those shoppers who are over 50 years of age.
Inquire regarding the company’s restriction policy. One of the most important things to discover about your policy is under which circumstances will the insurer will pay or not pay? Generally, most insurers will deny claims when the cause of death is related to alcohol or substance abuse, criminal activities, self-inflicted injuries, and suicide. Typically, insurance providers will also deny cover for preexisting medical conditions. Some policies may also refuse payment if the insured dies within the first 12 months of taking out the policy, so make sure to clarify all of these.
Check the policy’s underwriting criteria. Ideally, a good insurance provider is one that will provide cover for everyone regardless of the person’s health condition. Beware of those providers which require further medical checks or those who may only cover individuals within a specific age range. Naturally, guaranteed covers are more expensive, but depending on your situation, they may just be exactly what you need.
Shop around. Before jumping on the first deal offered to you, realize that you’ll most likely find better rates if you take the time to look around.