If you are aged fifty plus, then now may be a good time to review your life insurance arrangements. Why?
Firstly, it makes sense to regularly review all your financial products – not just life insurance – in order to check that:
You are still getting the most cost-effective option; and
The product is still fit for purpose (i.e. your personal circumstances have changed and so you may need a different or upgraded version of the product).
Revisit your existing arrangements
If you are aged fifty plus, however, then there could be other reasons why you may wish to revisit your current life insurance options. For example:
If you have an existing mortgage life insurance policy, it may be coming to an end as it mirrors the repayment of your mortgage – so you may need to consider an additional over 50 life insurance policy to provide a lump sum cash benefit for those you leave behind;
Your circumstances may have changed so that your existing life insurance does not offer adequate enough cover;
It is worth comparing other life insurance policies to see if you could be paying less for your cover – or paying around the same amount but with additional product features and benefits;
You may be thinking about inheritance planning – and a life insurance policy placed in trust can be a way for your family to pay less IHT (inheritance tax);
If you have retired or moved jobs, you could potentially lose any death in service benefit. This is a perk offered by some employers where they provide life insurance as part of your salary package;
If you have given up smoking, after 12 months’ of being a non-smoker, then you should tell your insurer – you typically end up paying less for your cover;
You may be considering your funeral planning options;
And so on.
Know your options
The most important thing to do when considering your life insurance options – for now and for the future – is to understand the different types of products that may be suitable for your own unique circumstances.
For example, over 50 life insurance plans are heavily promoted as funeral plans. And while the proceeds from the policy can be used towards funeral costs, really this type of policy is designed for people who cannot get life insurance elsewhere – may be due to a pre-existing condition.
You are guaranteed to get accepted in to a plan and do not need to answer any medical questions.
Get up to 40% more cover
You should note that if you are in good health and have not been refused life insurance elsewhere, then you may wish to apply for a traditional life insurance policy – you will have to answer medical questions but could get up to 40% more cover for the same premium as with an over 50 life insurance policy. This can then be written in to trust and so help reduce any inheritance tax your loved ones could face.
It may be worthwhile making sure that you still have the most appropriate life insurance plan for your own unique needs. Not only could you save money on the cost, but also you can feel confident that the financial future of your loved ones is secure.