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Myths and Misconceptions of Over 50 Life Insurance

3 friends pose for a photo while enjoying glasses of wine.

When you’re buying over 50 life insurance, you want to know exactly what you’re getting. Nowadays, so much information is available at our fingertips, but finding clarity about the best way to secure financial protection for your loved ones isn’t always easy. That’s why at Cover Today we’ve designed our Over 50 Life Insurance to be as clear and straightforward as possible.  

Let’s have a look at some of the common myths and misconceptions about over 50 life insurance and discover what we do to give you a policy that you can believe in, and the peace of mind that you pay for. 

MYTH: Over 50 life insurance is expensive

REALITY: Funerals and cremations are expensive. The average cost of a burial using a funeral director in the UK is £4,383 and the average cost of a direct cremation is £1,554. At Cover Today, we provide up to £22,000 of cover depending on your age. That means you can have some peace of mind that your family will have some financial support for these kinds of expenses when they need it most. Our Over 50 Life Insurance starts at just £4.42 per month1.

MYTH: I don’t need life insurance

REALITY: When you’re healthy and sound of mind, you might think that there’s no need to get life insurance right now. But health is fragile, and life is too. Securing an over 50 life insurance policy helps you to provide your family with some financial support when the time comes. 

This money can be used to pay for funeral expenses, outstanding debts, or even just to be given as a gift. Most importantly, it provides you with peace of mind if the worst happens. When you buy an Over 50s Life Insurance policy, you’re covered from day one2.  That allows you to enjoy life with the peace of mind that your nearest and dearest will be taken care of when you’re gone.

MYTH: You have to jump through hoops to take out over 50 life insurance

REALITY: Getting protection with Cover Today is simple. You don’t need to provide a medical or blood test. We just ask a few health questions and, once you're accepted for cover, you could get up to £22,000 of cover depending on your age. Unlike other UK Over 50s insurers, when you choose Cover Today, you’ll be protected instantly for death due to any cause2

MYTH: Life insurance companies take too long to settle claims

REALITY: With Cover Today making a life insurance claim is straightforward and easy. It’s our job to make sure your family gets the support they need, when they need it. Our experienced, UK-based claims team is trained to handle all claims quickly, correctly, and with compassion. When your claim is accepted, we will pay the benefit to the person who is legally entitled to it and we will refund any premiums paid between the date of death and the date the claim is paid. 

MYTH: It's pointless applying now, I won’t be able to take out enough cover

REALITY: Depending upon your age, you may qualify for up to £22,000 of cover. It’s only too late if you think it is, so why not visit our life insurance calculator

MYTH: You are better off putting money into a savings account

REALITY: Saving money is always a great idea but it could also make sense to have a life insurance policy too. Life is unpredictable and you might have to use your savings for emergencies or other unexpected costs. With an over 50 life insurance policy, once you’re accepted for cover you can have some peace of mind that there will be a guaranteed cash amount for your family when you die. So, they’ll have some financial support when they really need it. 

MYTH: What’s the point? My benefit amount won’t keep up with inflation

REALITY: Cover Today Over 50 Life Insurance policy features level premiums, so unlike other things in your life your monthly payments remain the same. This also means that how much we pay out will stay the same. If you’re concerned about the rising cost of living, however, you can choose our Increasing Benefit Option. This means your premiums will increase by 4.5% annually, and in return, your benefit amount will increase by 3% every year. It is a way to help offset inflation and help make sure your loved ones have the financial resources they need to handle your final expenses. 

MYTH: Having over 50 life insurance is just a way to leave an inheritance for your loved ones

REALITY: An over 50 life insurance policy is a way to lessen the hardship that you leave behind for those closest to you when you die. The money your beneficiaries receive can be used to pay for your funeral or pay off any credit card or other debts you may have. The people who receive the payout can use the money any way they like, so yes, it may be used as a gift. In other words, taking out Cover Today Over 50 Life Insurance is just one way of looking after those you care for most. 

MYTH: Life Insurance pay-outs are taxable

REALITY: There is usually no income or capital gains tax to pay out on a life insurance policy, but Inheritance Tax at 40% currently applies to any estate over £325,0003. If this is likely to affect your arrangements, one option that may help is to place your policy into trust. It is important to note that tax rules are subject to change, if you are unsure about anything please seek independent legal advice.

MYTH: There are no immediate benefits to taking out life insurance

REALITY: When you take out a Cover Today Over 50s life insurance policy you and your partner will receive access to free health and wellbeing services.4 This includes things like:

  • Having a dedicated Nurse Champion on-hand (9:30am to 5:30pm weekdays) to help with navigating appointments, referrals, and post-appointment assistance
  • Personalised nutrition and diet guidance
  • Symptom checker as well as one-to-one follow-ups with the Nurse Champion if anything looks unusual
  •  Help sourcing appointments, referrals and chasing up prescriptions
  •  24/7 GP advice by phone or video
  •  Physiotherapy and specialist referrals
  •  Help with anxiety and depression as well as mood journaling tools

Still not clear about life insurance? Call our UK-based team

Over 50 life insurance may seem confusing at times, but the UK-based team at Cover Today is here to help clear it up. If you have any questions or want to find out more about our cover, you can call us for free, and our UK-based team of professionals will be happy to help. We all want to make sure our loved ones are looked after when we’re gone, and taking out an Over 50 Life Insurance Policy with Cover Today is a way to do just that.

For tomorrow’s peace of mind, get Cover Today

1

For 50-year-old non-smoker with £1,000 of cover.

2

You are covered for Over 50s Life Insurance from day one, acceptance is subject to a few eligibility questions. Compared to current market providers of Over 50s Life Insurance, only Cover Today offer immediate cover for death due to any cause. Visit www.covertoday.co.uk/compare-over-50-life-insurance/

3

For married couples or those in civil partnerships, a higher allowance for the value of your estate may apply before IHT is charged.

4

Please note that the Cover Today Health and Wellbeing services do not form part of your life cover contract and can be changed or removed at any time.