Guaranteed Acceptance Life Cover
23 Jul 2020
If you’re in the market for a life insurance policy, you’ve probably heard of Guaranteed Acceptance Life cover, and it might sound like a dream. Life insurance with no medical check, and a definite acceptance? Sign us up!
It’s not quite that simple though really - Guaranteed Acceptance life cover isn’t really designed with the average fit and healthy 25-year-old in mind. Generally speaking, it’s aimed at people aged 50 and over (it’s often also referred to as Over 50's Life Cover) although many providers will offer it to people aged 40 and above, with some even offering it from 30.
It’s not just a loophole for 20 somethings with pre-existing conditions to get guaranteed cover, and it’s important to remember that you can get support and advice from an insurance adviser today if you’re worried about being accepted for life or income protection products due to pre-existing conditions. One of the benefits of applying for life insurance when you’re young is that you’re likely to get much lower premiums as you’re less likely to face health issues.
So who is Guaranteed Acceptance Life Cover for?
Guaranteed Acceptance Life Cover is a simple one. If you’re between the ages of 50 and 80, you’ll be accepted. Many insurers will also accept anyone over 40 and under 85, but this does depend on the insurer and the policy. You don’t have to pass a medical exam or answer extensive questions - you just have to be the right age. At 50, you’ve still got a lot of living to do, and it’s possible that you’ll still have kids at home, a mortgage to pay off, or other family members who depend on you. However, it’s just as likely that your needs are very different now, and that the money from the payout could be used to go towards funeral costs, paying off debts, or savings accounts for grandchildren, among other things.
Whether you’ve never had a life insurance policy before or you had one when you were younger that has since run out, you don’t have to leave your loved ones or their lifestyle unprotected. Whilst it’s undeniable that a normal life insurance policy might be on the pricey side for you after you’ve hit 50, Guaranteed Acceptance Life Cover is an option that will give you the cover you need without breaking the bank.
How does Guaranteed Acceptance Life Cover work?
One of the best things about Guaranteed Acceptance Life Cover is that it’s pretty simple. For one thing, your premiums and pay out are all fixed. You decide on the amount you’d like to receive when you buy your policy, and the premiums agreed upon at that point won’t change unless you make changes to your policy. Premiums can start from less than £10 per month - dependent on the amount and length of cover you require, your age and your medical history.
Provided you pay your premiums, when a claim is made against your policy you’ll receive the full amount agreed upon with your insurer when you bought the policy. With most insurers for the first few months (sometimes up to a year) of your policy you’ll only receive the amount you’ve paid in if a claim is made, but aside from this period you’ll receive the full amount, no matter when you claim. Everything being fixed for you means that all you need to do is pick a policy that suits your budget and your needs, and then keep up to date with your premiums. Paying your premiums on time each month is vital, because if your policy lapses you’ll lose your cover and your money - you won’t get back anything you’ve put in.
Even if you do pay your premiums on time each month, it’s still possible to lose money if you’re paying out for long enough. If you were 50 and bought a policy that required premiums of £25 per month for a pay out of £10,000, by the time you were 83 you would have paid in more than you’d get back. However, most insurers offer free cover if you celebrate enough birthdays - usually when you get to 90 years old. You’ll then be able to enjoy free cover with your policy still in place. Being smart about the policy you buy should mean you don’t lose money and get to enjoy the peace of mind that comes with knowing your family is protected, even after you’re gone.
With life expectancies creeping up over 80 years old now, if you take out a policy at 50 you could be paying it for more than 30 years, so make sure you’re committing to something that works for you. Going through an adviser and broker like LifeSearch can help you make sure you get a policy that works for you in the long term. Give us a call on 0800 316 7253 today, and let us help you protect the ones you love.
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