What options are there for life insurance as I get older?
Your options for life insurance as you get older include:
- Over 50s life cover – this type of cover, which is usually taken out between the ages of 50 and 80, pays out a lump sum to your dependants when you die. One advantage of an Over 50s plan is that acceptance is guaranteed – you won’t need to pass a medical or answer any health questions.
- Funeral cover – many providers offer pre-paid funeral plans. Some of these only cover the funeral director’s bill, while others could include the cost of a wake or a cemetery plot.
- Level term insurance – pays out a fixed lump sum, which is agreed when you take out the cover, if you die during the term of a policy. If you don’t die within the policy term, your family won’t receive a pay-out.
As well as life insurance, you might want to consider critical illness cover, which typically pays out if you’re diagnosed with an illness listed in the policy. A critical illness can include a stroke, heart attack and non-terminal cancer. A pay-out is made by a provider in the form of a lump sum, which can be tax-free. Read more about what is and isn’t covered by critical illness insurance. The type of policy that works for you depends on your individual circumstances.