Is over 50 life insurance worth it?

over 50s couple sat on sofa

One of the main features of over 50 life insurance is its sheer simplicity. You choose a monthly premium you are comfortable with and you are guaranteed to be accepted with no medical questions asked. In return, your chosen beneficiary will receive a tax-free, cash lump sum when you die.

So, if you’re looking for a simple way to leave loved ones some cash, over 50 life insurance could be worth considering.

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Is it worth having life insurance in your 50s?

Life insurance is typically used to pay off a mortgage or to provide for financial dependents if the policyholder were to die. While you may associate these needs with people in their 30s and 40s, the UK population of over 50s is growing. As a result, more people are having children (and still paying the mortgage) later in life.

Even if your children have flown the nest and the mortgage is behind you, there may still be good reasons to have some form of life insurance in place. For example, to leave money to help with funeral costs, pay outstanding bills or simply as a gift.

Why choose over 50 life cover?

  • If you’re aged 50-80 (85 with SunLife’s over 50 plan), you’re guaranteed to be accepted when you apply and provided you keep up your monthly payments, you will be covered for the rest of your life.  
  • Unlike traditional life insurance, over 50 life insurance is not based on the state of your health. So it may be worthwhile if you have an existing condition or smoke, have struggled to get cover elsewhere or simply don’t want to disclose details of your health and lifestyle.
  • Premiums start from just a few pounds a month.
  • After the first one or two years (depending on the insurer you choose), a cash payout is guaranteed regardless of when you pass away . 
  • Some plans include accidental death benefit, which means that from day one the full (or sometimes double) amount will be paid out if you die as the result of an accident.
  • Applying for over 50 life insurance only takes a minute or two online.

Do compare the over 50 plans first, so you understand what you’re committing to and any additional benefits including a free gift (some over £100) and optional funeral benefit. This allows you to have the cash sum put directly towards the cost of your funeral with an extra £250 or £300 contributed by the funeral director.

advertWhat about the cost?

Over 50 life insurance may offer a more affordable way to help with funeral costs than a more comprehensive funeral plan.

You simply choose the cash sum you want which will determine the amount you pay each month. Or choose a monthly premium, you can afford, which will then determine the size of the cash payout.

The maximum amount of over 50 life cover you can get is lower than other types of life insurance, typically around £10,000 - £15,000. If you are happy to go through a lengthier application that includes health and lifestyle questions, than it is worth considering underwritten life insurance as it could provide more cover for your money. as it could provide more cover for your money.

What are the disadvantages of over 50 life insurance?

  • At the start, there is a one- or two-year waiting period before the plan will pay out in full.
  • If you die in the waiting period, only the payments made to date would be refunded.
  • You must never miss a payment. If you do, your cover will end, you won’t get any money back and nothing will be paid out when you die. 
  • Depending on how long you live, there is a chance you could pay more into your plan than the amount paid out.
  • Inflation will reduce the value of the payout because it is a fixed amount.

The bottom line. Is over 50 life insurance worth it?

It may be worth considering over 50s life insurance if you want to help with funeral costs or provide a cash sum for your loved ones but prefer not to answer any medical questions. However, an over 50 plan may not be the best option if you already have sufficient funds to pay for your funeral or you are still fit and active.

Life insurance based on your physical health and medical history may provide you with a higher cash sum so could make more financial sense.

Next steps

Why not get a quote for over 50 life insurance and see what you think?

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