Over 50’s Life Insurance Plans Good Value?

One of the most popular life insurance plans currently advertised in the press and on televisions are the over 50’s plans or you might sometimes hear them called funeral plans and advertised with the aim of covering the funeral costs on death.

Typically these policies offer a free welcome gift like shopping vouchers when you sign up as a way of encouraging the potential customer to apply and have no requirement for any medicals or medical questionnaires and if you die after one or 2 years depending on the insurer you will get paid on your death the amount your policy is for.

But there is a cost for this, as using the figures for one of the UK’s leading life insurers a 55 year old non smoker taking out an over 50’s life insurance policy paying £6 per month would receive life cover of £1131 life cover. This is where it gets interesting as the same company offers a non over 50’s life plan and the same 55 year old non smoker taking out a life plan over 30 years and paying the same £6 per month would receive £6436 life cover or almost 570% more cover for the same monthly payment!

So if you are in good health it is possible for the same monthly payment your loved ones could receive an extra £5,005 on your death.($8088)

Before jumping to the conclusion that they are not good value for money though a few of things need to be considered.

  1. The over 50’s plan does not require a medical and if you are not in good physical health it is possible you might fail the medical so the over 50’s version might be the only option available to you, and regardless of the state of your health your loved ones will get the money if you outlive the qualifying period.
  2. The over 50’s version continues until the age of 90 and then cover continues for free (If you are lucky enough to live that long it means you have paid out £2,520 premiums but will only receive back £1131)
  3. The under 50’s version stops at 85 so if you die after this date the premiums you have paid will be lost as you will no longer have cover.

So if you are looking for life insurance shop around and consider your options carefully as just because a plan is advertised very heavily on television and in the press does not mean that it is offering good value. The point of all life cover is to provide cash for your loved ones or dependents on your death and the more cover you can get for the same monthly premium the better.

Learning About Life Insurance Plans

For most individuals who opt for a life insurance plan, it is an integral part of making sure they have some financial security in their lives. Insurance is one of the most widely used security tools on the market. The premiums that these individuals have to pay towards these insurance plans are based on a number of factors. They often include the following factors:

1. Gender of the individual
2. Age of the individual
3. Hobbies of the individual
4. Quality of life of the individual
5. Profession of the individual
6. Medical history of the life assured etc.

Hundreds of people all over the world benefit from different insurance plans. Individuals who belong to various age groups and different walks of life will probably buy life insurance at some point during their lives. The various groups that buy insurance fall under these groups:

a) Single parents
b) Couples married or unmarried with a mortgage or other debts
c) Couples married or unmarried with children
d) Single people with a mortgage or debts etc.

Some of the different kinds of insurance are:

1. Variable life – Individuals can select from a wide range of investment products long with stock funds.

2. Term insurance – This insurance policy includes buying coverage for a particular tenure and for a specific amount. If the individual who has bought this plan dies during the insurance tenure, the beneficiary will receive the value of the policy. This type of investment does not include any investment coupon. The term insurance is the simplest form of the different insurance types available to individuals.

3. Universal life – Individuals who opt for this insurance policy get to decide how much the premium should be. The insurance company selects the investment option for the individuals, which might include bonds or mortgages. The amount of investment along with the return on the investment is deposited in a cash value account. The type of universal life insurance where an individual can select his or her own investment tools is known as a universal variable life plan.

4. Whole life insurance – This type of insurance plan is more or less like the term insurance plan. The only difference is that of the tenure. Due to the prolonged tenure, the premiums remain stable throughout the duration of the policy.

There are many benefits for opting for different types of life insurance plans. These advantages include:

a) The insurance policies secure the future of the spouse and children.
b) These plans can be used to pay for estate taxes and other settlement amounts.
c) The cash value policies are tax deferred, which means individuals will not be required to pay tax against this amount until the time they withdraw funds from the policy.

Choosing a Good Term Life Insurance Plan

Everybody needs insurance, and now-a-days, it seems as though the best bang for your buck is a term life insurance plan from a reputable company. As you know, when a person dies there are a number of expenses that must be taken care of, and if you don’t have some type of insurance in place,your family is going to have to take care of those expenses on their own!

Also, if you should die before you “earn enough money” to set-aside for your family, they might not have any money, and they’ll have to figure out a way to fend for themselves. And I don’t think that is a position that you would want your loved ones in.

No one wants to know that their family isn’t going to be provided for, so everyone knows it is important to have a life policy. However, you have to buy the right type of life insurance that will work for your particular situation and your needs.

More and more people are rejecting whole life policies these days and are leaning towards A term Iife insurance plan for reasons that just make sense for them. One of the main reasons people choose term life is because a term life insurance plan is a pure death benefit, its main function is to provide coverage of financial responsibilities for the insured.

It includes such responsibilities as personal, consumer debt; college education for dependents; and mortgage payments. A good term life insurance plan is chosen more often over a whole life plan simply because it’s so darn inexpensive! There are many affordable plans on the market that are touted by some of the highest rated major carriers in the industry. Just ask for as many quotes as you can stand perusing and start your quest today.