Guaranteed Over 50 Life Insurance: Is it a Con?


Aug 30, 2013
Guaranteed Over 50 Life Insurance: Is it a Con?

There have been a number of articles in the press about the perceived lack of value of Guaranteed Over 50 Life Insurance. In fact you can ‘guarantee’ that every 6 months, someone jumps on the band wagon and makes disparaging remarks about how thousands of people throughout the UK are being ripped off. 

The problem is that these articles are never balanced. You only get one side of the story depending on who’s telling it.

Yes it’s true you can end up paying more into these Life Insurance Plans than you will ever hope to get out but there is also a chance you could die within 5 years of taking the policy out and the full cash sum would be paid.

At the end of the day this is insurance and like any other type of insurance you are paying to cover a risk. We spend our lives paying into various insurance schemes that we often never claim against yet this is the one type of plan that is guaranteed to pay out. 

As the amount you pay on a monthly basis is fixed, it’s fairly easy to work out how long it will take to pay more in premiums than the cash sum paid out. Just follow these 3 simple steps: 

1. Get a quote to see how much cover you will get based on how much you want to pay on a monthly basis
2. Divide the cover (the cash sum) by your monthly premiums which will tell you how many months you will need to pay before reaching the cover threshold
3. Divide this figure by 12 so you can see how many years it will take you to reach the cover threshold

Then, based on your age, you can decide whether you think it is worthwhile.

Of course this type of Life Insurance Cover appeals to people because acceptance is guaranteed without the need for a medical or to complete a health questionnaire. Basically the state of your health doesn’t matter; as long as you are within the eligible age bracket (usually between 50 to 80, although some insurance providers do accept customers up to 85) and live in the UK, you will be covered.

If you are happy to go through a lengthier application that includes health and lifestyle questions, than it is worth considering an Underwritten Life Insurance Plan as it could provide at least 40% more cover for your money. 

I must admit that it amazes me how many people just opt for the Guaranteed Over 50s Plan without even looking at the Underwritten option, especially when you consider just how much more cover you could get for the same monthly premium. If you are in good health and looking for life insurance cover, it’s certainly worth comparing Over 50 Life Insurance Quotes for both the Guaranteed and Underwritten option.

So are Guaranteed Over 50 Life Insurance Plans value for money? For some, yes but it really does depend on your personal situation. To help you decide which one is right for you, take a look at our website for more information and comparison quotes for both options.

By Ashley Shepherd


Ashley Shepherd is an Over 50s Personal Finance Expert

ashley shepherd

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