Over 50 Life Assurance

Over 50 Life Assurance: A Must for Seniors>

People mistakenly believe that over 50 life assurance isn’t a practical investment mostly because it is usually expensive and has more restrictions compared to other types of life insurance. However, it is still a practical expense because it gives you and your family a sense of security. You want to make sure that your family will be adequately prepared should the unexpected happen. Apart from this, assurance for over 50s has become more accessible and affordable in recent years.

Term Assurance

People aged 50 to 85 years old can opt to go for a term assurance policy. Term assurance is decidedly the most affordable type of cover available in the market today. Term assurance is a pure protection cover and when the policy holder dies within the policy’s term, his beneficiaries receive a death benefit. Should the policy holder survive, no payout is issued by the insurance company.

Term insurance can be bought in five, 10, 15 and 30 year terms but some companies may be willing to provide only a 10 or 20 year policy, depending on the age of the policy holder. At the end of the policy’s term, the policy holder can choose to renew the term assurance.

Whole Life Assurance

When you are looking for over 50 life assurance, you may want to explore whole life policies, also called permanent insurance. Whole life policies provide life cover as well as a cash value that the investment portion has earned. The investment element of the policy is usually handled by the insurance provider and the cash value that you get depends on how well the investment performs. Because of this, it is a good idea to thoroughly check the company’s past performance as well as its financial stability.

The investment element of this type of assurance is attractive to people who want to leave something behind for their children to inherit. The earnings accumulated by the policy may also be used as an additional retirement fund.

Endowment Policy

An endowment policy is an over 50 life assurance cover with a savings component. When a policy holder dies, his beneficiaries receive an assured sum of money. Should he survive, the insurance provider will pay out an amount of money known as the maturity value. It should be noted that the income earned by the investment component depends on market conditions.

Endowment assurance is typically used to pay off mortgage debts and entails higher monthly premiums because you are certain to get benefits whether you pass away or not. GP