What are the downsides of over 50’s life insurance?
Inflation can take its toll overtime on the pay-out. If we think about it 30 years ago the average house price was around £60,000 – today the average house price is a staggering £250,000. So when considering how much you want to leave when you’re 80 then think about the impact inflation has.
Another downside of over 50’s life cover is paying in more than you need. In other words, you should examine the amount you pay in and what you intend that money for. If you are young – in your 50’s – and it is just to cover funeral expenses, then consider looking at savings products as on average you’ll probably live for another 30 years or so. Also, unlike savings, there is no cash-in value for these types of policies.