Protection for the over 50 something's

In your 50s, your commitments and responsibilities will be different from those you had in your 30s. By now the kids will probably have left home and are likely to be self-supporting. Your mortgage will probably be repaid. So you might be forgiven for being suspicious about why you could still have a need for life insurance.

Tax planning

There are still a number of roles life insurance can play in the protection portfolios of older people. A key area for this market is the provision of funds to meet an inheritance tax (IHT) liability. If you have not already done so and you are in this age group, then we strongly recommend that you start thinking about inheritance tax planning. Excluding assets left to a spouse, currently assets passing to other individuals on death that exceed the Inheritance Tax limits, would be liable to IHT at 40% on the excess.  

Protecting wealth

In this situation, a whole of life contract written in trust can provide an IHT-free lump sum to ensure that, on your death, your beneficiaries will be in a position to pay what could amount to an extremely large IHT bill. You can, of course, make gifts to your children or grandchildren during your lifetime. But if death occurs within seven years of the transfer, this will still carry a potential liability. Policies are available that cover the potential tax liability on such gifts.

Situations change

The role of life insurance for the over-50s does not end at IHT planning. There are an increasing number of second marriages, and the decision to delay starting a family means that more and more children are being born to older parents.

You might also require life insurance to ensure that any outstanding debts, such as personal loans or credit cards, are repaid on your death to prevent debts being passed to loved ones.

If you would like to find out more, please email or contact us for further information.

Levels and bases of, and reliefs from, taxation are subject to change.

Prior Knowledge is an appointed representative of Sesame Ltd. The site is intended for UK consumers only. Principal: A Prior