With Over 50s Life Insurance you usually have to pay premiums for between 1 and 2 years before you are fully insured under these over 50 plans – the period you have to wait is called the Moratorium.
Because the insurers don’t ask you any health questions they make you wait for a while before your full insurance cover kicks in, they call this waiting period the moratorium. They do this to try and stop people that are already very sick or perhaps even have a terminal illness from taking up cover. This waiting period could be up to 2 years but most providers these days pay out the full sum insured after just 12 months.
If you were to die during this wait period then insurers will typically either refund the premiums you have paid, some may even double the amount of premiums you’ve paid. What this means is that even if you are ill already, provided you can afford the premiums, then it may be worthwhile considering taking out a Guaranteed Over 50 Plan.
All of the major Over 50 Life Insurance providers give you immediate cover if you die as a result of an accident, some even pay out as much as three times your sum assured in these circumstances.