Whether under or over fifty, life insurance premiums are not usually deductable against corporation or income tax of the insured. That being said, qualifying life insurance over 50 polices issued before March 14, 1984, are still entitled to 15 percent Life Assurance Premium Relief (LAPR), with the next premium deducted by the holder of the over 50 plan.
A claim on non-investment life insurance over 50 is not normally subject to capital gains or income tax. Tax treatment for a policy featuring an investment aspect, such as a whole life policy, is determined by its qualifying status.
If the over fifty life insurance policy meets certain criteria, qualifying status is established during issuance. Contracts of ten years or more are usually deemed qualifying, so proceeds are not subject to capital gains or income tax.
If they have short term or single premium life insurance, over 50s may need to pay income tax depending on their marginal rate during the year the gain was earned. Taxation of life insurance over 50 is complex, so the insured should pose questions to the insurance carrier and an accountant.
The proceeds of an over 50 life insurance plan are included for inheritance tax purposes. However, a policy written into a trust may fall outside of these guidelines. Laws regarding trusts and their taxation are extremely complicated. When establishing a trust and including life insurance, over 50s should consult with a solicitor or an Independent Financial Advisor.
Monthly payments are guaranteed never to rise and both level and decreasing life insurance over 50 coverage is available. With these types of life insurance, over 50s policyholders never have a cash value and if they cease paying premiums or survive plan termination, coverage ends and no money is returned.
Legal and General over 50 life insurance includes several plans and consumers can apply online to receive an immediate decision. Life insurance over 50 with this carrier costs as little as five pounds a month and comes in the form of a fixed, increasing, or insured funeral plan.
UK residents can also find an over 50 plan for mortgage life insurance, so surviving family members can afford to pay the mortgage after they die. Those with a repayment mortgage should review the over fifty life insurance mortgage decreasing policy that costs as little as six pounds monthly.
Sun Life over 50 life insurance has recently been improved so individuals from age 50 to 85 can provide beneficiaries with a sum of cash for only four pounds per month. New life insurance over 50s plans taken out with this carrier feature a larger cash sum.
This provides additional financial peace of mind during these difficult economic times. Sun Life provides life insurance over 50 guaranteed acceptance plans for UK residents age 50 to 85, no health or medical questions asked. This carrier currently has the lowest life insurance quotes available for this life insurance over 50 plan.
For life insurance over 50, LV also has competitive plans including life insurance over 50 guaranteed acceptance plans for 50 to 80 year olds. Premiums range from five to 50 pounds per month with a maximum coverage of 25,000 pounds available.
After one year, over fifty life insurance policy holders receive full coverage and the plan includes a guaranteed lump sum of cash as well as a funeral benefit option.
UK residents should compare life insurance for over 50s offered by each of these carriers. Since the life insurance quotes will be higher than for someone younger who is in good health, those over 50 can save money by comparison shopping.
They will soon realize that in terms of life insurance, over 50s really do not have it that bad. Premiums for an over 50s life plan are actually quite reasonable, even for a guaranteed over fifty life insurance policy.