Over 50s Life Insurance

Many people over 50 would like to leave a lump-sum if they die, to cover funeral costs or just leave something for their family. Often, they will consider Over 50s Life Cover. Read on for more information or visit the FAQ section below.

What is It?


Over-50 plans, (or guaranteed whole of life plans), provide a guaranteed tax-free lump sum payment when you die. Often, they can be obtained with little or no health evidence. It is a little different to regular life or term insurance.


How Does It Work?


You must be over 50 to apply - the older you are, the more your monthly premium will be for the same payout. Acceptance is usually guaranteed – you don’t need to answer health questions or get a medical check to get cover.

Grandfather laughing with grandson

You pay a fixed monthly premium for the rest of your life or to the age set out in the policy agreement – your insurance company can’t increase your premium so the amount you pay each month never changes.


You are guaranteed a fixed payout when you die – if you take out a plan, you can choose what payout you would like, which means you know exactly how much it will be.

Why Might I Need It?


Leaving a lump-sum to family on should the worst happen can be a reassuring thought - perhaps to cover funeral expenses, pay off a debt or just to provide a small inheritance. Starting a traditional life insurance policy can be more difficult (but not impossible - see below) as we get older due to the need to provide medical history and go through an underwriting process. A simple application process with "guaranteed acceptance" can be appealing, especially if you are already in poor health or have a shortened life expectancy.


Are there potential downsides?


Over 50s policies have some unique features which you need to be aware of:


Most policies won’t pay out straightway - these policies can have a "waiting period" of around one to three years before they will pay out, unless you have an accident. There will likely only be a refund of premiums paid on death during the waiting period. The waiting period will be in the terms and conditions so it’s important to check what this is before you consider buying, especially if you are terminally ill.


You may get less out of the policy than you’ve paid in - If you live beyond age 80, you’ll likely end up paying in much more than you’ll get out. For example, if you took out an over 50s plan costing £20 a month when you were 55, that guarantees to pay out £5,000 when you die by the time you get to the age of 76 you’ll have paid in £5,040. For every year you live after that, you’ll pay £240 but your sum insured will not increase.


If you stop paying the premiums, your cover will be cancelled - You should be sure that the premium is affordable for you and that you will be able to continue paying it throughout your lifetime.


Are there alternatives?


Regular life insurance - It is worth comparing an over 50s life insurance with regular life insurance policies as they may give you more generous cover. It is possible to get "whole of life" regular life insurance policies too. If you are in fairly good health, it is possible that you will be able to get cover for a lower cost and effective from day one after acceptance (i.e. no waiting period).


Put money into a savings account - Putting a little money aside each month is one straightforward way to save for a funeral.

This isn’t risk-free though, as you might die before you build up enough to pay for a funeral. And many people worry that they might not have the discipline to leave their savings untouched. But, if you can be sure to leave the money untouched, it’s one way to guarantee a lump sum of money that will be available to put towards your funeral costs.


Contact us for advice and no obligation quotations.

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OVER 50s LIFE INSURANCE FAQ

Here are some common questions asked about Over 50s Life Insurance. Got a question that is not covered? Send it to us and we will answer it for you and maybe add it to the list below.

  • Why use an Independent Financial Adviser for Life Insurance, rather than a comparison site?

    A qualified Independent Financial Adviser who specialises in life insurance can be by far the best way to find the right policy for you, and the most affordable one too. Price comparison sites are an increasingly popular way to buy insurance of all kinds but with life insurance it is advisable to take a little more care. The loss of a close family member is one of the biggest upheavals a person can face, and is the worst possible time for any financial insecurity or uncertainty. 


    Additionally, unlike house or car insurance, life insurance is a long-term contract spanning years or even decades. Making sure the policy will provide the cover and flexibility you need is vital. Although affordable premiums are very important there are other vital factors to consider. For example, should you include "Waiver of Premium?" What is the right policy term? Are premiums "guaranteed" or "reviewable?" Is there an option to increase cover in future if circumstances change? 


    We also recommend you choose a "whole of market" adviser, such as Money in Person. This will make sure that you will have access to the widest possible range of products and options to meet your requirements.