There are many life insurance companies offering ‘life insurance over 50’ plans. They are promoted on the internet, on TV adverts and in entertainment magazines, and often have a well-known celebrity endorsing the plans. Some offer an incentive to sign up such as a gift voucher for a High Street store.

They usually involve some common features:

• Guaranteed acceptance – no details of your lifestyle, health, occupation or hobbies is needed.
• A ‘whole of life’ contract – they will always pay out no matter what age you die.
• A choice of premiums, often starting at very low monthly amounts.
• Often cover is provided with little or no medical information about you.
• A free gift to applicants.
• They do not have a surrender value if you stop the plan.
• The plans would not pay out the full benefits if death should occur within an initial period of typically 12-24 months.

Who are they for?

The main appeal will be for those who do not want to reveal their medical history or lifestyle choices to an insurer. They will also be taken by those who do not want to meet with a financial adviser for any reason.

The plans are often taken out to be a ‘burial policy’ to cover funeral costs. However, the benefit amounts can often be higher than the typical costs of a funeral.

The plans have a place in the range of insurance products. However, if you are over 50 and in reasonably good health, alternatives are available. You may sometimes find the cost of obtaining insurance elsewhere can be cheaper than with these products, and the full cover is provided immediately.

Contact Andy Wilson Financial Services for guidance on your Life Insurance Over 50 options.