When you’ve worked hard for so many years, it’s understandable that you might like to take the handbrake off a little in retirement.
We’ve seen plenty of examples of seniors take chances with new things. There are seniors who have got bitten by the travel bug, launched into new hobbies, or even started learning a new language. Isn’t that what retirement is supposed to be about?
But the one thing you never want to take chances with is your finances. When you’ve built up a nest egg over the years, it’s worth taking the time to secure it with an Over 50 Guaranteed Life Insurance policy. And it’s never too late!
It’s no secret that the cost of a funeral in the UK is steadily rising. Unfortunately, it isn’t showing any signs of slowing down. Taking out a policy like Over 50 life insurance could be a way to help your loved ones cope with these kinds of costs.
What is Over 50 life insurance?
Over 50 life insurance is a type of life insurance taken out typically when someone is aged 50-80. You agree on a lump-sum benefit with an insurance company and then all you have to do is make sure you pay your premium each month.
When you pass away your beneficiaries will receive this lump sum. It can be used to help pay for funeral expenses, outstanding debts or even leave a gift behind.
What makes it different from other types of insurance?
With general life insurance policies, you will have to apply and then pending a medical you will be accepted on to the policy.
Over 50 life insurance offers what’s called ‘guaranteed acceptance’. This essentially means that you can avail of it no matter what your health circumstances are. It is important to be aware that the benefit amount will vary depending on your age.
How does Over 50 life insurance with Choozi work?
At Choozi, we’ll ask you to fill out a form once with some of your details. With these details, we search among the leading providers of Over 50 life insurance in the UK. We then find you the best policy for you.
When you go with Choozi, you should know that we have no preference for any life insurance company in the UK. All we are interested in is finding the best possible policy for you based on your needs and circumstances.
What are the benefits of Over 50 life insurance?
If you are concerned that you have left it too late to get life insurance or are worried that your health might stand in the way, then Over 50 life insurance is a good option. With guaranteed acceptance, it offers a great way for you to leave something behind for your loved ones when you pass away. Here are some of the other benefits of this kind of life insurance:
With this type of insurance, you will know exactly what you need to pay for the duration of the policy. This can provide you with certainty that you know exactly what will come out of your account each month. It also means that you can budget for it with a degree of certainty that might not come from other types of life insurance.
When you agree on what your benefit is at the beginning of the policy, this will stay the same unless you choose to make changes or the policy is cancelled. This can help you in terms of planning your funeral, planning for outstanding debts or even if you want to leave something behind.
This is probably the most attractive benefit of choosing Over 50 life insurance. No matter what your health situation or age might be, you will be accepted to this type of policy. This can help you get peace of mind that you will be making things easier for your loved ones when you pass away.
What are some of the disadvantages of Over 50 Life Insurance?
While it might sound like a pretty attractive offer there are a few things that you should bear in mind. Here are some of the possible downsides:
Inflation can reduce your benefit value
While it’s difficult to say exactly what the rate of inflation will be in a couple of years time, it’s important to take into account what effect it might have. One crucial step in getting life insurance is selecting the right benefit amount. This benefit amount might seem like a lot now but in a few years, the buying power of it might be reduced. So you may not be able to help your loved ones in the way you wanted.
You could pay in more than you receive
With Over 50 life insurance you may end up paying more into the policy than you get out of it. We all don’t know what’s around the corner and while we set up this kind of protection for the worst-case scenario we can’t say with any kind of certainty that it will come true. This would be an important point to remember when choosing your benefit amount.
If you miss a payment you will lose the cover
This may seem like an obvious statement but it bears repeating. If you miss one consecutive payment you may be in a situation where you will receive nothing. This won’t matter if you’ve paid in more than you stand to receive, your policy will end and you will get nothing from it. Not to mention that you will be exposed and without any kind of cover.
An important way to prevent something like this from happening is making sure that you will be able to pay your premiums in the long term. In retirement, it could be the case that while trying to fit everything into a budget could mean things could be pushed to their limit.
Over 50 life insurance is not a savings or investment product
On the surface, it may seem like you are saving money or putting money away for a rainy day. However, you should be aware that you cannot withdraw the money you’ve paid in at any stage during the lifetime of the policy. You cannot in a sense ‘cash-out’. This links closely to the fact that if you miss a payment you will not get anything back from the policy, no matter how much you paid in.
Are there any restrictions?
We know that a lot of seniors like to travel and expand their horizons. The good news is that as long as you’re normally a UK resident, you’re covered worldwide.
You can also choose to put your policy into a trust if you want to save it from inheritance taxes or duties for your children or grandchildren.
The only aspect that you should consider when taking out your policy is that the benefit amount is fixed. That means that it might not keep pace with inflation in 20 or 30 years' time.
On the flip side, it means your monthly premiums never change either, so you’ll always know that you’ve chosen a premium you can afford.
A Guaranteed Life Insurance policy is a straightforward, affordable way to put some peace of mind in your retirement. These are your Golden Years, after all!
Enjoy Your Golden Years with Choozi
If you choose to compare policies with us, you can feel confident that we’ll help you to find the right cover for your family. You can get a quote in just a few minutes. Peace of mind doesn’t have to be difficult, with Choozi it’s just a few clicks away.