The New Over 50 Life Insurance Plan


Apr 28, 2017
over 50 plan

I have written many blogs and articles over the years about Over 50 plans, from choosing the best over 50 life insurance plan to how to get more life insurance cover for your money but more recently there have been a number of changes to certain plans which I thought were worth talking about.

It appears that some of the more well known over 50 plan providers have made tweaks and added extra perks to their plans to make them more appealing and stand out from what is let’s face it a completely saturated market. No doubt you will have noticed that when you google Over 50 life insurance, you will not be at a loss when it comes to comparing over 50 plans.

So to help here are a few changes I have noticed as well as a few reminders on those over 50 plans that offer something a little different when it comes to life cover.

Be safe with Royal London

The Royal London Over 50 Life Insurance plan now proudly offers ‘safety features for tough times’ which are designed to give customers greater flexibility whilst paying their premiums. In addition to being offered the option of reducing your premiums, the Royal London over 50 plan also guarantees to pay the family some of the cash sum if you have to stop your payments. As long as you are halfway through your monthly premiums, your family will get a cash payout.

Traditionally of course over 50 plans cease if you stop paying your monthly premiums with no money paid out, so this flexibility may be reassuring for those who are concerned about the commitment of paying until you are 90. Having said that, you should always ensure you are completely comfortable with the regular payments before committing yourself to any Over 50 Life Insurance Plan.

Reduce the time you pay with Sun Life Direct

Sun Life Direct’s latest over 50 plan offering, the ‘Premium Cap Option’ gives you the option to increase the amount you pay on a monthly basis in order to reduce the length of time you pay. Prior to this change, monthly premiums for the Sunlife guaranteed over 50 plan used to be payable for life, which will still be the case if you do not opt for one of the ‘cap options’ so at least now, dependent on age, customers get the flexibility to choose an option that will suit them rather than just making a lifetime commitment.

Get speedy delivery with LV    

Although the LV over 50 plan remains the same, the one noticeable additional point to their plan details states that they pay the cash sum within 48 hours, although it does say this is on average, based on receipt of the death certificate.

To be honest a number of the over 50 life insurance providers offer a quick turn around when it comes to the pay out but having this in writing will make a difference to some; especially those specifically earmarking the cash for funeral costs.

A nod to the others

Although they haven’t made changes to their plans, I thought it was also worth mentioning two companies who already offer over 50 life insurance plans with a twist; namely One family, formally known as Engage Mutual and British Seniors.

Protect against illness with One Family

As highlighted in my previous review, the thing that makes the Engage Mutual or as it is now known One Family over 50 life plan stand out is the fact that it pays out if a serious or terminal illness is diagnosed.

As long as the plan has been in place for two years, the cash sum would be paid out in full if a terminal illness is diagnosed or 20% of the cover if a serious illness is diagnosed with the remaining 80% being paid upon death.

Never over pay with British Seniors

The one thing you need to consider when buying an over 50 life insurance plan is that the true cost of your plan is the great unknown, based on how long you live – therefore there is a chance you could pay in more than the cash sum paid out. At the end of the day it is insurance; there to cover a risk and give you peace of mind that you have put money aside for your family.

British Seniors however is the one exception to the rule. They are the only over 50 plan provider to offer a ‘Lifetime Payback Guarantee’ that ensures the lump sum payment will always be greater than the total premiums you have paid, so your family will never get back less than you have paid in.

Of course at the end of the day, the only way to be certain of choosing the right over 50 plan is to ensure that you compare over 50 life insurance quotes to see for yourself what the market has to offer and then before you buy as I have stressed on many occasion, always read the small print. 

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Ashley Shepherd is an Over 50s Personal Finance Expert

ashley shepherd

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