Similar to life insurance
, over 50’s insurance helps you leave a guaranteed amount of money for your loved ones when you die. This cover pays out a tax-free amount of money upon your death. That money can then be used however you or your family wants. You can state beforehand if you want it to cover your funeral costs, pay off loans, go to charity or be gifted to your spouse or any of your loved ones. The average policy is around £4,000 of cover compared to an average £250,000 with life insurance.
You will have the option of putting the over 50’s plan into a trust. A trust is a way of keeping something of value (i.e. the policy) for the benefit of others (i.e. your loved ones), without giving them full access to it right now.
You’ll give your policy to a Trustee, who then legally owns it. They’ll effectively hold onto it before giving it to the beneficiaries when you pass.
This guide will give you a detailed overview of over 50’s life insurance and whether it’s a fit for you and your family.