Over 50's Life insurance

GT60

HI 
What is stopping me getting "normal" life insurance instead of over 50's?
I am 57 and no mortgage etc.
Thanks 

dunstonh

What is stopping me getting "normal" life insurance instead of over 50's?

Over 50s life insurance is an option of last resort.  if you can still get life assurance then you shouldn't really be looking at the over 50s plans.

GT60

Thank you.
What is the difference between the two?
Is it the over 50's is guaranteed and the normal is paid out  if you only die inside  the fixed term?

Sandtree

Difference is more underwriting criteria, premium to limit ratio and free gift for buying.

The premiums are high for the limits given because of the lack of full medicals etc and so it should only really be bought by those who's conditions make buying regular life insurance a problem however the free pen/carriage clock etc may mean some who could buy regular life insurance end up paying over the odds but do get a pretty mantlepiece 

Weighty1

Basically an over 50's plan is a form of "whole of life" policy but is priced in such a way that they can afford to sell it without asking any questions regarding health.  Normally, if you can obtain medically underwritten cover that would be accepted with a premium increase of less than ~200% you'd be better off getting a "proper" whole of life plan instead of the over 50's one.

On that basis, there's nothing to stop you.  The question you should be asking is, do you really need one?

Old_Lifer

Over 50's plans , with no medical questions asked, means they attract people with medical conditions which pushes-up the price.

If you can take-out a normal policy with medical questions asked,  you can expect to receive a significantly higher sum assured for the same premium.

csgohan4

is paying more premiums worth a parker pen to you? If not, no harm in seeing what a regular life assurance product you can get

Cardew

A 50 year old unmarried daughter of a friend has been diagnosed with terminal cancer and it is forecast that her life expectancy is 2 to 5 years.

Co-incidentally she received an unsolicited pack of information for a Over 50 life cover whole life insurance plan. There are no medical questions asked and the policy has to be in force for one year before any payout is made(except for accidents). All premiums repayable if death occurs within 12 months.

For a £30 monthly premium the payout is approx £9k.

Whilst the lady and her parents have no financial worries - and funeral costs are not a problem!! - surely in financial terms it is a no brainer?? I am told most of her reasonably substantial assets are willed to charity, so if it is legal to take out this plan it increases the sum to a charity.

I was asked to look at the plan, not that I am any expert but can normally understand legal jargon, and I can see no catches.

Am I correct?

Weighty1

Cardew said:

A 50 year old unmarried daughter of a friend has been diagnosed with terminal cancer and it is forecast that her life expectancy is 2 to 5 years.

Co-incidentally she received an unsolicited pack of information for a Over 50 life cover whole life insurance plan. There are no medical questions asked and the policy has to be in force for one year before any payout is made(except for accidents). All premiums repayable if death occurs within 12 months.

For a £30 monthly premium the payout is approx £9k.

Whilst the lady and her parents have no financial worries - and funeral costs are not a problem!! - surely in financial terms it is a no brainer?? I am told most of her reasonably substantial assets are willed to charity, so if it is legal to take out this plan it increases the sum to a charity.

I was asked to look at the plan, not that I am any expert but can normally understand legal jargon, and I can see no catches.

Am I correct?

Yes, you are correct.  After the 12-month period death from any cause would be covered, whether a pre-existing condition or not.  It's one of the few situations that this type of plan can be reasonable value for money.

Old_Lifer

Subject to affordability and should she so desire, she could  take-out  a  policy with more than one provider so potentially could have a number of these policies in force.    If so, she should check that the return of premiums on death during the initial period applies in each case.

tacpot12

The Post Office can be quite good for normal life insurance for over 50s.