When you reach 50, it becomes a crossroads in many people’s lives - where you’re now older, but you certainly wouldn’t (and shouldn’t) consider yourself old.
Despite the pandemic inherently renewing interest in life insurance for many over-50s, a significant amount of people in this age group haven’t had a life insurance policy in place right throughout the entire duration of the COVID-19 pandemic.
Even though it may feel a little daunting to start discussing end-of-life planning; as the pandemic has taught us all, the future isn’t guaranteed for any of us. At this age, the likelihood of a medical condition developing now starts to rise and if a serious medical condition were to occur, so would the costs of taking out a policy or even the possibility of being ineligible for cover at all. Living a healthy lifestyle, however, can massively help cut down costs and (as ever) the sooner you decide to purchase, the better.
When discussing life insurance, it can be uncomfortable for many people talking about scenarios that can happen once they die, that’s why our specially trained advisors do our best to keep you as comfortable, whilst informed, as possible.
Essentially, when it comes to buying a life insurance policy, what you’re buying is peace of mind. You can rest assured, knowing that should the unthinkable happen to you, the costs of your funeral would be covered and your loved ones would be protected.
It’s a given that whatever happens in life, people want the best for their loved ones. Life Insurance can ensure that happens.
Being 50+ is also an age where different life insurance options may now seem more viable to you.
We all know life insurance is crucial if you have family members who are financially dependent on you, however as you get older, your loved ones may have become more independent and are no longer reliant on your income. You may have now cleared your mortgage and your children may have since left the home to start their own families.
Up until now, you may have only considered a ‘term’ life insurance policy which pays out a set amount if you pass away in a given period; although you may now want to start considering a ‘whole life’ policy which covers your life until you pass away. Knowing the pros and cons of both to make an informed choice is absolutely crucial, and Cavendish can help.
With a whole life insurance policy, the clue is in the name. As we all (unfortunately) die one day, this policy is ongoing so it will pay out a lump sum whenever that day comes.
TOP TIP: Whole life insurance is also known as life assurance by many insurers.
Naturally, these policies are typically more expensive than term insurance policies since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.
Unsure of your options?
One of the main benefits of whole life insurance is that it can help your family deal with any bills associated with inheritance tax. Currently, if an estate is valued at more than £325,000, inheritance tax will be charged at 40% on the value of the estate above that threshold (correct for the 2020/2021 Tax Year).
However, the tax will need to be paid before your loved ones are given access to your estate. This can put your family in a difficult position - they need to pay a tax bill which may run into (tens of) thousands of pounds, but they wouldn’t be able to use the money in your estate to do so.
As a result, many families are forced to take out loans just to cover this bill, which at an already upsetting time, may be particularly stressful. A whole-of-life insurance policy could help avoid this issue. The payout would provide the funds required to clear the inheritance tax bill without your loved ones needing to take out a loan or go into their own savings to cover it. This though, is reliant on the policy being written in trust.
Whole life insurance may also appeal if you are determined to leave some form of inheritance to your loved ones, or if you want to help with your funeral costs.
Many people who have a life insurance policy in place tend not to review it very often, however, it’s important to understand if the policy still meets your needs (as well as finding cheaper life insurance) - that’s where Cavendish can help.
Speak to the experts...
Give our advisers a call today.
Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.
The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way.
01392 436 193(Monday to Friday, 9am - 5.30pm)
