Over 50 Plans – Pros & Cons
What is an over 50 plan? This plan was established to cover your expenses when you die. Individuals ages 50 and over are allowed to make monthly payments, upon their death the money is paid out to the beneficiaries. If you are age 50 or older, it is an excellent idea to consider enrolling into an over 50 plan. However, it also very important that you read and fully understand the plan before you sign up for the plan. Read on to find information about the pros and cons of this type of plan.
Think about the benefits of joining an over 50 plan. You will be able to leave cash for your family members when you die. There is no health questionnaire or medical questions asked for some programs. Members sometimes will not have to take a medical examination and some companies guarantee that they will accept you into their plan as long as you are age 50 and over. Your premiums will never go up and your coverage will never go down regardless of your health in some plans.
Make sure you understand the plan and take into consideration the investment. Can you afford to pay the monthly premiums until your death? If you stop making the monthly payments, you will not be able to get any money back and your coverage will end. There is no cash in value under the over 50 plan. You may have to pay into the plan for a certain amount of years before a claim can be submitted under some over 50 plans. It is extremely important that you understand the terms and conditions of the plan.
One important feature of the plan is that the funds can be used to cover your funeral expenses. Also, the monthly rates are based on what you can personally afford. It is very similar to having a personal retirement plan to cover expenses for outstanding bills. For example, upon your death, funds can be left to assists family members with their personal expenses. With careful planning, you can leave a large nest egg for them. There are thousands of customers that are enrolled in the over 50 cover plans.
There is a possibility that you may lose money in an over 50 plan, this is one of the biggest drawbacks of the plan. Another drawback is that you have to be over 50 years old to join. Inflation may cause the amount you receive upon your death to be reduced. Consider this drawback, if a customer pays for 10 years into the plan, and stop making payments for some reason, he will not get any portion of the money back that he paid into the plan.
As with any investment, it is always a good idea to get legal advice from a lawyer and financial advice from your financial advisor. Overall, this appears to be a good plan backed by a financially strong company. But, make sure you do your homework!