50 Plus Life Cover pays out a tax-free lump sum in the event of death or diagnosis of a terminal illness. The significant difference between 50 Plus Life Cover and term insurance is that the policy never expires. Therefore, you can always be rest assured that there will be a lump sum paid out to your loved ones to ensure they will not be burdened with the costs involved with your death.
These policies are only available after age 50 and commonly referred to as an “over 50’s plan”. The application involves no health questions and therefore you are always guaranteed to be accepted. For this reason, these policies are often taken out by people with chronic illnesses but carry significantly higher charges and reduced payouts.
Things to note
If cover is not required beyond the age of 90 and the applicant is in reasonably good health these polices do not represent good value for money. Often much higher sums can be insured for and/or lower premiums can be achieved if cover is not required beyond age 90 by arranging a Life Insurance otherwise known and Term Insurance.
Caution should exercised when arranging a 50 Plus Life Cover because the monthly premium can either be on a “reviewable” or “guaranteed” basis. Having your premiums guaranteed means the cost is fixed for the life time of the insurance. A reviewable premium means that periodically (often annually) the cost of the insurance is reviewed by the provider which commonly results in an increase in the cost of the monthly premiums. For this reason a reviewable policy is generally the cheaper option initially, however they often become more expensive and can continue to rise in price each year. Although taking out a guaranteed policy is initially more expensive over the life of the insurance it is often the cheaper option.
If the purpose of the policy is to cover funeral costs or expected inheritance tax liabilities, for example, it is recommended the policy is put into “trust”. This service is offered free of charge by Periscope Wealth and involves us helping you nominate who you wish to receive the proceeds of the policy. This considerably speeds up the time it takes for the funds to be released and ensures they go to the right person at the right time.
If you are concerned about the terms of your current insurance policy or would like to discuss any other protection needs please call Periscope Wealth on 0161 416 6672. We are more than happy to conduct a no obligation review of your cover and circumstances to ensure you have in place the cover you need when you need it.