Over 50s Life Assurance

There can be few circumstances where having an incurable illness can work in your favour and lead to a useful sum of money being paid out on your death to assist your family with inescapable expenses such as funeral costs. These plans are often promoted by well-known celebrities, offering enticements such as free pens and televisions and, most importantly, no need to undergo a medical or declare any serious health issues.

How do over 50s plans work?

Plans promise a fixed lump sum when you die, so no investment risk and you know exactly how much money will be paid out. No medical required between ages 50-85. The amount paid out depends on what age the plan is started If you die within the first two years of the plan, you get back what you paid in pus 50% on top.

Too good to be true?

Some financial experts advise extreme caution with these plans, certainly if you currently have no underlying serious health conditions and even suggest that your money would be better off in a reputable savings account. It might be wise, therefore, to consider the following:

If you have poor health, Over 50s Life Assurance plans can be lucrative

If you are likely to die sooner than the average life expectancy, these plans can work well for you and your family. For example, if you’ve an already diagnosed medical condition like incurable cancer, or you’re a heavy smoker or seriously obese, these plans can be a good gamble because you don’t need a medical even though your life expectancy will be substantially lower.

As an example, if we take someone with poor health at 65 who is likely to live until 70, they could take out a £74 per month plan which would pay out £14,320, while they’d only have paid in £4,400 – they’d get a whopping gain of almost £10,000. If they died during the first two years they’d just get back what they’d paid in plus 50%, still not a sum to be sniffed at.

You can find more information and comparisons of different companies’ plans by visiting: http://www.moneysavingexpert.com/insurance/over-50s-life-insurance

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