What Types of Insurance Should Over-Fifties Have?

Those who are over 50 years old are often presented with a number of different insurance policies to choose from. Not only can this be quite confusing, but there are some packages which are more essential than others. To clarify this matter a bit, let us take a look at a handful of policies that should always be chosen and a few that are not be as critical as many believe.

Term Versus Whole Life Insurance

Term life insurance policies will financially protect an individual for a certain period of time. These can be annual plans or they can be renewed after a certain number of years. This plan is great for those over 50 years of age who desire maximum protection without incurring massive costs. On the contrary, a whole life insurance policy is active until one's death and can also be seen as a form of investment (as the money saved accrues over time). Whole life insurance is the better option for anyone who may be suffering from ill health, as the policy will always remain in place if the premiums are paid.

Over-50s Home and Car Insurance

Both of these plans should be considered by those over 50 years of age. The main reason is that reduced rates are often a possibility. As the policyholder tends to make fewer claims, he or she is seen as a reduced risk. It is worthwhile determining whether an existing provider offers such options. If not, the cost of leaving a certain plan in favour of these age-oriented policies is a good idea to consider. A substantial amount of money can be saved every year.

Prepaid Funeral Insurance Plans

Prepaid funeral insurance is a rather recent option that has arisen due to the exorbitant costs of funerals within the United Kingdom. As opposed to health or life insurance, prepaid funeral plans pay out in a single lump sum immediately after the death of the policyholder. This is an excellent means for one's family to avoid the hefty financial costs that are often associated with funerals.

Travel Insurance

Unless one plans on travelling a great deal, it may be wise to avoid over-50s travel insurance plans. As the insurer will feel that the older generation is at a significantly higher risk of developing health problems while abroad, the premiums tend to be quite high.

Stipulations Within Health Insurance Policies

Many comprehensive health insurance policies contain addenda such as inpatient or day-patient treatment. Although these are good options for those who are likely to spend time in hospital or have a chronic medical condition, such additions are likely to be redundant for anyone in good health. In this case, choosing a less comprehensive plan can help to dramatically lower premiums.

It is clear to see that certain types of over-50s insurance are excellent options while others are less essential. Appreciating the mechanics behind each choice will enable anyone to make the most informed decisions at the right times.

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