Over 50 Life Insurance And The Importance Of The Qualifying Period
There are many pensioners that have no over 50 life insurance that they can be used to pay for their funeral or to help their families. This can leave the families in distress when a loved one dies and there is little or no income to replace the lost income they generated.
There is an answer to this and it is a very simple solution that can be put in place to prevent this happening. If health is in good condition then standard life insurance can be effected to pay out a lump sum or if preferred a monthly benefit, however if health is impaired and there is no possibility of being accepted on standard rates from the life insurance company there is over 50 life insurance. This type of life insurance provides guaranteed acceptance with no medical underwriting from the provider.
To qualify for these products as you would expect you need to be aged 50 or above and the premiums usually start as low as five pounds per month. There is no medical underwriting required but of course this means that the insurance company is taking a risk therefore the sum of benefit will be lower than if you were taking a policy of similar premium and the insurance company was underwriting your health.
Many insurance companies also do not allow you to have premiums over a certain level, the level quite often is one hundred pounds and this is to stop people taking on huge sums assured with no medical assessment from the insurance company.
There are lots of advantages then of why these plans are of real benefit to those in poor health that are looking to protect their families and beneficiaries. What then are the disadvantages of this type of life insurance protection for the over fifties. The biggest single disadvantage of these policies is the fact that there is a qualifying period of time when all that is paid out is the premiums that have been contributed into the plan. This qualifying period can be from twelve months to twenty four months depending on who the insurance provider is. This of course is to protect the insurance company against huge claims in the early months of a policy being in force.
When choosing a provider for over 50 life insurance you need to consider carefully this qualifying period as it does have a bearing on the amount of cover that would pay out if you were to die unexpectedly early in the plan life. A quick example would be if client a had a policy with insurance company a that had a qualifying period of twenty four months and client a died after eighteen months then all that would be paid in terms of benefit would be the return of the premiums paid into the plan during the period it was in force. Compare this to client b that has a similar plan with a qualifying period of twelve months and then subsequently died after eighteen months, the full sum assured benefit would be paid out and not a return of premiums paid into the plan. Think carefully about the term of the qualifying period.Choose the 50 life insurance policy you require carefully and from the entire market as the premiums vary considerably on over 50 life insurance.
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