If you are over 50 and need to look for insurance to cover your life and to be able to leave something to cover final expenses or a lump sum for other obligations then here’s some important information you may require.

There are so many adverts on the television for the over 50 life plan you may be wondering what they are about. The best bet is to speak with a specialist life broker or professional advisor to get the best advice for this important insurance product. But back to what’s on the  market at the present time.

The adverts you see for over 50 life insurance from popular television personalities are not a savings plan but pay out a fixed amount if you die. The level of cover is normally fixed at around £20,000 so it’s probably not something to consider if you want to pay off a mortgage and is really designed just to cover initial death costs and the price of a funeral.

The TV adverts offer all types of free gifts and the like and with these products there is no medical that is required. The low pricing but low cover may  not be for everyone and if you die within the first 2 years in most cases you’ll only get your premiums refunded.

Different types of life insurance for the over 50s (or anyone really)

There are many different types of  life insurance products for the over 50s and these terms will apply to anyone who is thinking of taking out insurance on their life as follows :

• Level term – means the policy is for a fixed period of time and value and the payout is made on death. If you do not die within the term the policy ceases and has no value at all.
• Increasing term – this means that the level of cover increases each year together with premiums based on a formula linked to inflation. This means the value keeps up with current increases in prices
• Decreasing term – this is what most mortgage life products are linked under. As you pay off your mortgage the amount of cover decreases so you would not require so much money. The actual monthly premiums normally stay at the same level. The policy ceases at the end of the term.
• Whole life policies – these are different from the over 50s life insurance that is sold via tv adverts and you entire life is covered where a lump sum of your choosing based upon your premium values is paid out upon death.

The level of cover and premiums you may pay

Although you may see enticing headlines of very low rates these will likely be for the least risk to the insurance company based in a healthy part of the UK. Premiums will be based on you, where you live and your life style. For example your age, your gender, whether you smoke, how much you drink, where you live, and what level of cover you require.

The best way is to get as many quotes as you feel are needed for your cover either from price comparison websites or from the insurance companies direct. Compare the level of cover that is on offer and the price of the premiums. Also see the exclusions and the small print of the terms offered on over 50 life insurance quotes that you may receive. If you are in any doubt then you should seek professional advice.