How over 50s life insurance works
- You are guaranteed to be accepted
To be eligible for over 50s life cover, you simply need to be at least 50 years of age and live in the UK. Most providers have a maximum age limit of 80 years old, although the SunLife Over 50 Plan goes up to the age of 85.
- There’s no need for a medical
With no medical life insurance you will not be asked to answer any questions about your health or lifestyle when you apply. It's worth noting, however, that some over 50 life insurance providers offer lower monthly premiums for non-smokers.
- You pay a fixed premium every month
The premium you choose at the outset is fixed and will not change for the duration of the plan. Premiums are usually payable until you die, or until you reach your 90th birthday (this can vary from plan to plan), so it’s always a good idea to compare over 50 life insurance plans before you make your final decision.
- You will be fully covered after 1 or 2 years
All over 50 life insurance plans have an initial waiting period of 1 or 2 years. If you were to die during this time, the full cash sum will not pay out. Instead all money that had been paid in up to that point would be refunded to your estate.
- The cash payout is guaranteed
Provided you keep up with your monthly payments, you can be sure that when you die, your over 50s life cover will pay out a cash sum to your beneficiaries.
What are the pros and cons of over 50 life insurance?
Whilst over 50 life insurance can provide an affordable way to leave money to your your loved ones, there are important things to consider before deciding it's right for you.
The pros
- Your health and lifestyle are your business, and don’t have any bearing on your application
- Straightforward and quick application process online or over the phone
- Affordable premiums starting from £4 a month
- Your monthly payments will never change so no nasty surprises along the way
- A cash payout is guaranteed when you die
- You choose how much you want to pay each month or how much cover you need
- Your loved ones are free to do what they want with the money paid out
- Simple and efficient claims process to make things easy when the time comes
What you need to be aware of:
- If you were to die during the initial waiting period (usually 1 or 2 years), the full cash sum will not pay out, however your monthly premiums would be refunded
- Premiums are payable for life or until your 90th birthday depending on the plan you choose
- Depending on how long you live, there is a chance you could pay in more than your plan pays out
- The amount of money paid out when you die is fixed, so inflation will reduce its value over time
- If you cancel or stop paying your premiums for any reason, your plan will be cancelled, and you will not get any money back
- The cash sum is usually paid to your estate so may be subject to inheritance tax.
Compare over 50 life insurance
How many over 50 plans can I have?
You can have as many over 50 plans as you like, providers set limits on the combined total of all your plans that you can't exceed - either the total monthly premium or the total cash payout when you die.
Can over 50 life insurance be used to pay for a funeral?
Yes, your loved ones could put the cash pay out from your over 50 life insurance towards the cost of your funeral. If you want to help with funeral costs, you could consider taking the funeral benefit option on an over 50s plan. This enables your cash sum to be paid directly to a designated funeral director when you die, to help pay for the funeral.
It’s free to set up and you will get a contribution of between £250 to £300 towards your funeral costs, depending on the company you choose. What’s more, you can change your mind at any time, and leave the money to your loved ones instead.
What are the alternatives to over 50s life insurance?
- Regular whole of life insurance
Regular whole of life insurance requires you to answer health and lifestyle questions, consequently it will give you more cover for your money but may not be suitable for someone with health problems.
Term life insurance is useful if you are seeking cover for a fixed period of time. You specify the number of years you want to be covered for and the policy only pays out if you die in that time.
A prepaid funeral plan allows you to pay for and arrange your funeral in advance, so most of the planning and expense is taken care of, leaving less for your loved ones to deal with. One of the main features of a prepaid funeral plan is that you pay today’s prices. This means that while inflation may increase the average cost of funerals year on year, your funeral services will be fixed at today’s prices.
Also known as a direct funeral, a direct cremation plan lets you pay and arrange a simple and fuss-free funeral alternative. There is no service at a church or crematorium involved and no one in attendance, so it is not for everyone, but it could be suitable if you’re seeking to avoid a service or save money.
Is over 50 life insurance right for you?
Whether over 50 life insurance is right for you depends on your circumstances. The cash sum paid out at the end of an over 50 life insurance policy may be less than other types of insurance, but you are guaranteed to be accepted regardless of any health concerns.
So if you have a condition that is possible life limiting, this type of cover could be a good idea, however, if you have only just turned 50 and don't have any health problems, other types of life insurance maybe more suitable.