Monday, 28 March 2016

extremely beneficial

From Axa Sun Life Direct and Michael Parkinson to LV and Julie Walters, you just can't avoid the adverts... over 50s life insurance is one of the fastest growing markets in the industry. Over 50s Life Insurance is essentially a whole of life insurance policy that will pay out a lump sum on death. The big benefit of these plans is that they have no medical questions and offer guaranteed acceptance to any UK resident between the ages of 50 and 80 or 85. For those reasons they can be extremely beneficial to many concerned about how their loved ones may pay for their funeral when they are gone.
Some plans such as that offered by Engage Mutual ensures their customers stop paying their premiums once they reach the age of 90. Other plans however, will keep taking premiums no matter how old their customer lives to. This can have the effect meaning they will pay in a lot more than they will pay out. This is one crucial factor to consider before you buy an over 50s life insurance policy.
Because over 50s policies ask no medical questions, if you are in good health you are likely to be paying a lot more for your level of cover than what you need to. This means that the healthy customers are paying a premium for those not expected to live as long due to health problems.
An alternative option is taking a straight forward whole of life insurance policy. In some cases a 50 year old female can get up to four times more cover than the popular Axa Sun Life plan. Based on prices quoted on Sun Life Direct's website in June 2012, a fifty year old non smoking female can get £10,320 for £25 with Axa Sun Life Direct. On the same date, PruProtect could offer the same customer £41,410 for the same monthly premium. Alternatively they could pay just £8 per month and be still get a pay out of over £10,000 for their loved ones. Yes, Axa Sun Life offer a free TV but when you see these figures the true cost of the "free" gift becomes very evident.
There is no doubt over 50s policies can be extremely beneficial; they provide peace of mind for many and are quick and easy to set-up. More so than many other policies though, it is vitally important that you compare various over 50s plans before buying and if you feel you are in reasonable health and don't mind answering some medical questions then it is well worthwhile looking into whole of life insurance as well as an over 50s plan. That way you may find, you are actually more likely to get paid out more than what you pay in.

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You have to keep on paying until you die

If you live in the UK, you will have seen that many advertisements that are running on the TV trying to convince you to buy life insurance for the over 50s. They all say that there are no medical questions, and your loved ones will get a lump sum when you die. They also offer free gifts galore for signing up for a policy, or even for just making an enquiry. If you are thinking about signing up for over 50s life insurance, here are some of the facts that you should be aware of before you do.
It is quite likely that will pay in, more than is paid out
It is important to remember that over 50s life insurance policies are not savings plans, they are insurance policies, and that means if you start your plan at a relatively early age, you are more than likely to pay in more than will ever be paid out. For example, if you were to sign up for the plan advertised on TV that you get "a free Parker pen just for enquiring" at the age of 50, if you lived beyond the age of 75, you will have paid in more than your relatives will ever receive.
You have to keep on paying until you die
Because it is an insurance policy, the moment you stop paying the premiums, your cover stops and you will lose your money. It's no different to a motor vehicle policy; there is no value in the policy itself that you transfer, or cash in.
You should around for over 50s life insurance
The amount that is eventually paid out by these life insurance policies can vary considerably from provider to provider and they can have very different terms and conditions. Don't be swayed by free gifts and well-known TV personalities, shop around before you sign up for a policy. The difference in the amount paid out by different providers on a £20 a month policy could be as much as £2,000.
Don't forget about inflation
The promise of a guaranteed lump sum, and premiums that never vary, may sound very tempting, but, has the provider taken inflation into account? Your lump some may pay for your funeral costs today, but it may not do so in thirty years' time. Some policies are inflation linked, and some are not.
The premiums are dependent on age
The advertisements make a big play on how much your relatives would receive for just a small premium of £5 per month. That is based on the assumption that you start the plan at the age of 50. The older you get, the higher the premiums will be, and the lower the amount of the eventual lump sum paid out will be. Different providers also have different maximum ages that you can start a plan.
If you only pay a small premium, the policy is unlikely to cover your funeral costs
The major factor that attracts people to over 50s life insurance is the thought that it will pay for their funeral costs, but if you only pay a relatively small premium, that is unlikely to be the case. For example, if you were to start a plan at the age of fifty paying £20 per month, the final amount paid on your death would be in the region £7,000. The average cost of a funeral in the UK, at today's prices, is already approximately £8,000.
Most policies will not pay out if you have been in the scheme for less than one year
Death is never a pleasant subject, but let's be blunt. If you are unlikely to live for more than twelve months, then most over 50s life insurance policies won't pay out, because they require a minimum of twelve month's premiums to have been paid first.
Is over 50s life insurance worth the cost of the premiums?
Whether or not, over 50s life insurance is value for money will depend on your personal circumstances and your health. It does give you peace of mind that there will be an amount of money available to help with your funeral costs, but if you live to be a ripe old age, you would have been better off, putting the money in a savings account. What it does do, however, is it insures you for an unexpected early death.
For more helpful advice, money tips, and other interesting articles, visit: Artois52 Life

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life insurance

One of the most significant uses of life insurance in a business is "key man insurance". With key man insurance, your business financially secures itself against the potential early loss of someone who is so vital to the company's profits or continuance that without them it's a very realistic possibility that your company will suffer severe financial losses or have to fold entirely. Key man insurance is most often used by smaller businesses, but big businesses also use it.
Key man life insurance is different from disability insurance on a key man. Life insurance on a key man (or woman, for that matter) covers against the permanent, irrevocable loss of them from participation in the business. It pays out the death benefit to the company (which is also the payer of the premiums), which can then use the proceeds to pay off creditors, make it affordable to hire a successor, or set up a "buy-sell agreement" to buy out the deceased company (wo)man's shares.
Now, many people naturally assume that the key man insurance policy needs to be on the company's founder/owner or a member of the highest ranking executive management. This is, indeed, often the case. But it doesn't necessarily have to be that way. The "key man" (or men; there can be more than one) might be a top salesman without whom your business will take serious hits to its revenues; or that marketing director without whom nobody knows where or who you are.
So, when should your company consider buying key man life insurance one one or more members or employees?
Again, if the ongoing activities of the business are heavily dependent upon a certain person, that's one time to consider key man insurance. One note: if the key member in question is under the age of 65, s/he should also have a disability insurance plan that coordinates with the key man life insurance. You see, working people under the age of 65 are far more likely to become disabled than to die an untimely death. If you coordinate your key man life insurance with disability insurance, you'll save on premiums while having a better comprehensive insurance plan.
Key man life insurance can also be necessitated if a smaller business takes out a business loan. The loan is officially granted in the name of the key persons, who in turn take out at least enough of a life insurance policy to pay off the full principle of the debt if they die before the loan is paid back.
With some smaller businesses, they have a great salesman who brings in a very large percentage of their revenues. If he dies, it will be difficult to replace him, and there will be a time lag between his death and finding and training the new salesman anyway. During this time, company revenues may go down through the floor. The company can use the death benefit proceeds to keep paying expenses that would have been paid for by that salesman's work. An analogous situation might exist for, say, an IT company that has a "genius" software designer or computer scientist on its staff--without her, they could very well see a precipitous drop in productivity for a while and will need the death benefit pay to sustain them while they find a replacement or adjust.
Now, how much death benefit should be carried on the key man? This depends on both the size and the debt situation of the business. Some companies carry this life insurance policy in face amount that's just twice or triple the person's annual salary. But many such policies are written for as much as 15 times their annual salary.
If you feel that you need this kind of life insurance for your company's most important person or people, consult with some life insurance agents to find out how to acquire it.
The author lives with her husband in Maryland, with their two dogs and cat. She put together the website [] in order to help the everyday person navigate the often confusing world of life insurance

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