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Over-50s PlansCreated by Verity in Retirement and pensions, Saving for you
As you get older, getting your finances in order becomes increasingly important, especially as you near retirement age. Although your pension may provide you with some financial security whilst you are alive, you may want to make provisions for your loved ones after you are gone. No one wants to burden their children with the ever increasing costs of funeral arrangements. Moreover, we would all love to be able to leave something behind for our loved ones after our death.
While taking out life insurance is one option to address these concerns, these policies generally get more expensive as you get older, especially if poor health or pre-existing conditions exist. Another option to save is investing in an Over-50s Plan.
For people aged between 50 and 75 (in some instances up to 85)years of age, Over 50s Plans are intended for those people who do not or cannot afford a life insurance policy nor have any other provisions for a final payout on their death.
These plans do not require a health questionnaire or medical examination, a real bonus if you are in poor health or living with pre-existing conditions that would make regular life insurance too expensive to afford. Furthermore, you get to decide what your monthly premium will be – it can be as little as you want or can afford.
As with all financial products out there, it is your job to research the one most suitable for you. Some policy providers require payments for the remainder of your life, whilst others cap payments at 90 whilst continuing to offer you cover. There is almost always a two year qualifying period, details of which vary with providers. Some won’t pay out any fixed sum upon death within this two year period regardless of the cause of death. However, others take into consideration accidental death and do pay up even if it is within the specified qualifying period.
After the qualifying period is over and ensuring you continue to pay your monthly premiums, your loved ones will get the lump sum you agreed with the provider at the start of the policy. Some providers give their holders the option of putting their final payment toward an independent funeral plan provider. In return, the funeral provider will contribute an extra £250 to your funeral costs, leaving you that much less out of pocket.