Is over 50 life insurance worth it?

The beauty of over 50 life insurance is its sheer simplicity. You’re guaranteed to be accepted and all you have to do is keep paying a fixed amount every month. 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.

Compare quotes

Is it worth getting life insurance after 50?

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 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, a cash payout is guaranteed regardless of when you pass away (depending on the insurer you choose). 
  • 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.

What 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?

Whether over 50 life insurance is worth it will depend on your personal situation.

 It may be a good option if you’re limited on how much you can comfortably afford each month or prefer not to disclose details of your health and lifestyle. After the initial waiting period, over 50 life cover pays out the same amount, regardless of how many years you have been paying in, so it can also be worthwhile if you have a relatively good idea of your life expectancy.

Whatever the size of the payout, it will make a difference to your loved ones and could help then with funeral expenses and other costs when you die.

However, if you already have enough money saved or have a funeral plan in place, it may not be worthwhile. Although, check what your plan includes as you may want to leave some extra funds for something that isn’t covered.

Or if you’re still fit and active, with many years ahead of you (hopefully), life insurance based on your physical health and medical history may make more financial sense than over 50 life insurance.

Next steps

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

Get a quote

Updated 13th December 2021 by Ashley Shepherd

Ashley is the founder and managing director at Over50choices. With over 30 years’ experience in financial services, he has held senior roles in building societies, banks and insurance companies.

Ashley Shepherd

Don't miss out...

Sign up to our monthly newsletter for the latest updates

Our trusted partners

First Choice Health
Age Partnership