Applying for life insurance at any age can seem a little daunting. But, as we get older, a common misconception is that life insurance is more difficult to get. We’ve all seen over 50s guaranteed life insurance adverts on daytime TV – often with free gimmicks such as vouchers and Parker pens.
But don’t be fooled – if something seems too good to be true, it usually is. Guaranteed over 50s life insurance can leave you with significantly less cover when compared with an underwritten policy.
As an example, the table below shows how much cover can be bought for £20 per month for each product.
|
Your Age |
Over 50s Cover |
Whole Of Life Cover |
% more cover |
|
50 |
£10,010 |
£13,900 |
39% |
|
55 |
£7,807 |
£10,702 |
37% |
|
60 |
£5,605 |
£8,336 |
49% |
|
65 |
£4,205 |
£6,972 |
66% |
|
70 |
£3,024 |
£5,123 |
69% |
It’s free to apply for a whole of life policy, so why not give it a go? You could be in for a 69% increase in your life cover. There are a few considerations though…
What is Whole Of Life?
Unlike traditional life insurance which you may have taken to cover a mortgage, called term insurance (which has an end date), whole of life insurance, like the name suggests, will cover you for the whole of your life. Providing you keep paying the premiums, you will receive a guaranteed pay-out upon your death.
What’s the difference?
Whole of life insurance is an underwritten policy. This means that your specific circumstances are taken into consideration and your individual risk is assessed. This will affect the amount of cover you receive for a set monthly premium, but in most cases the level of cover will still be higher than a non-risk-assessed guaranteed over 50s plan.
Will I need a medical?
It is extremely unlikely. Most applications will be assessed on the questions asked when you apply. Occasionally the insurer may ask your doctor to fill in a questionnaire, but that’s straight forward and we’ll do the legwork for you.
When does the cover start?
Whole of life cover starts as soon as terms have been agreed. Depending on whether a doctor’s report is required, this can be from a few hours to a couple of weeks. In contrast, guaranteed over 50s cover normally involves a waiting period of between one and two years. If a claim is made in this time, the premiums paid will be refunded, but no pay-out will be made.
Which is right for me?
The decision is ultimately up to you. Sometimes applications for whole of life cover are declined, or the risk assessed is high making the sum assured quite low. In these cases, guaranteed over 50s cover may be the right choice. But if you feel healthy and can get a good level of underwritten cover, then a whole of life policy will be better for you.
To discuss all the options, give our life insurance team a call on 01243 219972. They will be able to discuss your circumstances and get you a quote for whole of life and guaranteed over 50s cover.
