The beauty of over 50 life insurance is its sheer simplicity. You pay a fixed monthly premium and, in return, your designated beneficiary receives a tax-free, cash lump sum when you die.
The payout may be seen as a financial legacy you have left to a loved one. Very often, over 50s life cover is used to pay for or contribute towards the cost of your funeral – relieving your family of this particular expense and, so, gaining the term of funeral insurance.
So much for the principles – are over 50 life insurance plans worth it?
Market researchers Business Wire make the point that the size of the population over 50 continues to grow, but it is a segment noted for its increasing diversity.
The majority are married, for example, but a significant proportion is widowed, and although most have children over the age of 19, an increasing number, who had their children later in life, still have dependents living at home.
Over 50 life insurance is uniquely suited to this diversity because it is so readily accessible. Acceptance is guaranteed - without the need for any medical and whatever your current state of health or your lifestyle choices - for anyone between the ages of 50 and 75 or 85 (depending on the insurer).
The size of the death settlement is chosen from the outset, and this naturally determines the amount you pay each month in premiums. Since these premiums may cost very little (some are currently less than £4), over 50s life cover may prove a more affordable form of funeral insurance than, say, a prepaid funeral plan.
Thanks to their online availability, it only takes a minute or two to arrange your over 50s life cover, but it is worth spending a little while comparing the various plans on the market because of the additional benefits that may be offered by some and not others.
These range from gifts (valued as much as between £25 and £75) offered by some plans or an optional funeral benefit supplement, granting a cash lump sum on your death (typically worth £250 to £300, or a percentage of the assured cash benefit). Take a look at over 50 life insurance with free gift offers here at Simply Funeral Plans.
Despite this impressive list of benefits – many of which are detailed in an article published in the financial pages of the Daily Mail newspaper – typically offered by many over 50 life insurance policies, they have received a mixed reception in other sections of the media.
These question the value of the insurance. Pointing out that you need to pay the premiums every month for the remainder of your life (or, with some plans, until you reach the age of 90), if you live an exceptionally long life, therefore, you may have paid more in premiums than the policy eventually pays out.
Others may argue that the effects of inflation may undermine the real value of the assured cash benefit that is paid out when you die.
When you compare the benefits of an over 50s life insurance policy against the possible drawbacks, however, you might conclude that they are worth the outlay – especially if you are in search of a more affordable solution than a full-blown prepaid funeral plan.