A Guide to Senior Insurance
How to Get Cheap Life, Car & Travel Coverage For the Over 50s
Sep 21, 2009
Many people, once they reach the age of 50+, can find it hard to take out certain types of standard insurance policies. In the past, life, car, travel, home and health insurers may have been beating a path to their doors. But, this stops as people get older. Why do some insurers discriminate against older people and what are the options that they can access in the sector?
Why is Insurance for Seniors Different to Regular Coverage?
When an insurance company approves a policy application they do so based on certain risk factors. For them, an ideal scenario would see the individual pay for their insurance but never make a claim. This is where they make their profits. But, if they sell a policy to an individual who then does have to claim on it, they make less money. Their costs may even exceed the policy premiums that the individual has paid so far so they may have to dip into their own pockets to make their payout.
To insurers those aged over 50 represent a higher risk, especially from a health perspective. Their historic research and experience shows that people are more likely to suffer from medical problems as they get older. This increased likelihood simply makes older people a higher risk for health related policies. The insurance company knows here that they may be more likely to have to deal with claims.
What Does This Mean for Seniors?
Working on this basis, many companies will levy an age limit on many of their policies. Some will have a cut off point of 50 whilst others may give out policies up to 65 or even 75. The limits set here will depend on the insurer and their policy types. So, older people looking for insurance could find that:
- They cannot apply for the policy they choose because they are older than its age limit.
- They may be asked to pay extra for standard cover simply because of their age.
- They may have to go through extra medical checks and may have exclusions written into their coverage.
The good news is that many insurance companies are relaxing their age limits. This is hardly surprising given the fact that people live longer nowadays. In addition, seniors can also look at getting specialist coverage. This could save them money on premium costs and get them the protection they need, even if they have pre-existing medical conditions that may play a part in the risk they pose to an insurer.
Where to Find Insurance for Seniors
It may be possible for some older people to simply search through the sector to find standard policies with suitable age limits. Whilst one company may not give out insurance to the over 55s, the next may give out policies until the applicant reaches 75. A little research here could throw up some viable options that won't necessarily incur extra costs.
Others may prefer to simply deal with companies that specialise in insuring the senior end of the market from the start. Companies like Saga and Sun Life, for example, may be useful places to start to find suitable products. It is also relatively easy to shop around and compare costs for seniors insurance online. Using insurance comparison sites can be useful and can save a lot of time and effort. These sites bring together all kinds of policies from all kinds of insurance specialists and can be a good way of finding cheap quotes quickly.
 |
 |
 |
 |
