How do you measure whatever makes one insurance policy better than another? How do you determine which is the best?
Firstly, what you consider to be the best over 50’s life cover may be different to what a neighbour thinks is the best. Everyone has different needs and expectations.
The price is likely to come into it, of course, but is rarely the be all and end all of your choice. More important is likely to be the extent to which the insurance policy meets your needs and requirements, the range of benefits it offers and the price you pay for those benefits. Rather than the absolute cheapest policy, you are likely to be looking for good value for money.
Similar principles apply when it comes to any search for the best over 50 life insurance.
Choosing the amount of cover that suits you
The best over 50 life insurance cover is likely to be that which serves the purpose you need. You might want it to:
- provide a financial legacy for your family and dependants;
- help meet any inheritance tax liabilities they encounter upon your death;
- clear a mortgage, credit card balances or other debts that might be outstanding; or
- meet the costs of your funeral.
Depending on the aims you have in mind, the best cover is likely to be determined by the actual amount of the benefits you want to see paid out or the amount you choose to pay each month in premiums. That choice may be made all the easier, since the monthly cost of premiums is fixed.
Term life or whole of life insurance?
You might choose term life insurance at any stage in life. In return for a monthly premium, your designated beneficiaries are paid a cash lump sum in the event of your death within a given period of time – the “term” referred to in the title of this type of life insurance.
A fact sheet published by the Association of British Insurers (ABI) makes clear that the factors typically taken into account by an insurer when arranging this type of cover include – your occupation, your lifestyle (whether or not you smoke, for instance), your age, your family’s medical history and any pre-existing medical conditions or illnesses from which you may be suffering.
In other words, you may be faced with a range of questions relating to your circumstances – especially your current state of health – in order to arrange life cover which pays out only if you die within the prescribed term of the insurance.
You might want to contrast this with over 50 life insurance, which is a whole of life policy – in other words, it pays out whenever it is that you die. Furthermore, the application process is typically much more straight forward, with guaranteed acceptance and no medical or health related questionnaire to fill in.
When choosing the amount you may be able to pay in monthly premiums, it is important to bear in mind that a whole of life policy such as this requires payment of the premiums for every month until you die (or in some cases, until you reach an age of, say 85 or 90, depending on the particular insurer). If you default on these payments, the policy lapses and there is no cash-in value on it.
You might also want to bear in mind that the total amount you pay in premiums during the whole of your life may exceed the value of the cash benefit eventually paid out.