Reduce Confusion about elderly Health and Life Insurance

Nothing seems straightforward anymore. The older we get, the more confusing things seem to be. Technology changes by the second; local services are substituted by call centres; even the English language is unrecognisable with all the abbreviated text speak. In this world of confusion and change, it’s little wonder that so many of us are baffled by insurance, especially when it comes to the impact of getting older

Most insurance policies become more expensive the older we get, so it can be difficult to work out whether the value of having the cover out ways the higher price you pay. That tipping point, when you are considered a higher risk and costs start to creep up, varies depending on the type of insurance, but it doesn’t necessarily mean that you have to say goodbye to the reassurance of having cover in place

Whether you are looking for insurance for you or your parent, there are usually a number of ways you can reduce costs and still benefit from the protection. To help, here is a quick guide to two of the leading insurance product areas, health insurance and life insurance

Health Insurance

As we get older, we run a greater risk of becoming ill or injured, so health insurance can be a good idea, especially if you are looking for speedy referral to top specialists and consultants for treatment, flexibility with appointment times, the use of private hospitals and access to new treatment and drugs not available on the NHS

Although a number of health insurance providers do have a maximum age limit for starting a policy, which can vary between 65 to 75, there are companies which have no age threshold whatsoever, so cover for your parent should be available

There are two types of health insurance plan to choose from:

1. an Underwritten Plan, which stipulates what will and won’t be covered based on your parent’s medical history
2. a Moratorium Plan, which is a cheaper option that won’t cover your parent for a set period (usually 2 years) for any conditions they may have suffered over the previous 5 years.

How to reduce the cost of your parent’s health insurance cover

There are a number of ways you can reduce the cost your parent’s health insurance cover which includes:

• Building up and protecting their no claims bonus
• Agreeing to pay a higher excess (which is the amount they are prepared to pay per claim)
• Agreeing to be treated by the NHS if it is within a specific timeframe (usually 6 weeks)
• Opting for treatment from a restricted list of hospitals
• Agreeing to pay a proportion of the full treatment costs
• Reducing the level of cover by opting out of some of the outpatient elements of the cover

• Some Health Insurance plans specifically developed for older people have a larger excess or exclude certain conditions in a bid to keep premiums more affordable, so read the terms and conditions and compare a range of health insurance plans to make sure you are happy with the level of cover. You may find that it is worth adding certain conditions into the policy that you would like included to give your parent the right level of cover, but this will come at a price and may only be available with a more specialist insurer

Life Insurance

Whole of Life Insurance policies provide cover for life, paying out an agreed sum of money when you die. There are a number of reasons why people choose life insurance, which varies depending on age and personal circumstances. For the elderly, life insurance can be an invaluable source of money, earmarked to leave as a gift, often helping reduce the impact of inheritance tax, to pay off outstanding debts, or help cover funeral costs

Depending on your parent’s age, health and lifestyle, there are a couple of options available, which include Guaranteed Over 50s Life Insurance and Underwritten Life Insurance

1. Guaranteed Over50s Life Insurance Plans are straightforward, affordable life insurance plans. Which provide a cash lump sum when the insured person dies. As long as you parent lives in the UK and is between the ages of 50 and 80 (some companies also accept customers up to the age of 85), acceptance is guaranteed without the need for a medical, so their health is not taken into account and they will be covered for the full amount after an initial period of either one or two years
2. An Underwritten Life Insurance Plan has a lengthier application process, which includes health and lifestyle questions, but offers immediate cover if your parent is accepted. They could get at least 40% more cover for their money compared to the Guaranteed option, so it’s worth comparing quotes if you’re thinking about life insurance, especially if they are in good health

Choosing insurance for your parent needn’t be difficult; you just need to follow the 3 golden rules:

• Always shop around and compare plans and prices, regardless of whether you are buying for the first time or renewing an insurance policy
• Never assume an existing provider will offer the best deal. You don’t seem to get much for customer loyalty these days!
• Always compare prices online, as this is usually where you will find the best deals, even with the same company

For more information on all types of insurance, visit the Over50choices website. Ashley Shepherd is Managing Director of Over50choices.co.uk; a personal finance comparison website for the Over 50s