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.
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.