Are over 50's plans a waste of money?
An Over 50's Life Insurance have become more and more popular over the years and are regularly advertised on the TV, newspapers and radio.
The way an over 50's policy works is quite simple, you pay a premium each month and when you sadly pass away your friends and family will receive a payout. However, there is a catch with most of these policies, in that the payout is capped but your payments into the policy aren’t.
So, if you are one of the lucky one's to live a long and fulfilling life, you could pay in far more than your loved ones will get out.
The main benefits of an over-50s plan for some people is that there are no medical examinations, so if you’re not in the best of health you will still get covered. You can choose the level of payout based on how much you pay in each month.
The payouts are much smaller than ordinary life insurance policies. Many providers try to hide this somewhat by offering a free gift when you sign up or even offering a couple of months free insurance.
You should be aware that a claim won’t be paid out if you die in the first couple of years. Instead, your payments will generally be paid back to your family.
And if you stop your payments before the end of the plan your money will be gone and you'll get nothing in return with select companies.
Benefits of life insurance
There are many benefits when taking out a life insurance policy but here are a few reasons to why you should take out a new policy.
- Protects your family
- Receive a cash lump sum
- High acceptance rates
- Covers your mortgage
Life Insurance guide
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