Life insurance for people over 50 provides a cash pay out for your loved ones when you die.  There are no medicals or health questions asked and cover is available for UK residents aged 50-85 years old* 

* Plans vary depending on the life insurance provider.

What is over 50s life insurance?

Over 50’s life insurance is an insurance policy which guarantees to provide a cash sum whenever you die. The cash sum that is paid out could be used to pay for your funeral, settle any debts or be left as a gift to loved ones.

How does over 50s life insurance work?

With an over 50s life insurance plan you are guaranteed to be accepted, regardless of any health issues you may have. You won’t have to answer any medical questions, or attend any medicals.

All you have to do is choose how much to insure and keep up paying the monthly premiums. If you cancel or stop paying your premiums, you won’t get any money back. When you eventually die the plan will pay out a cash sum for your loved ones.

  • Under an over 50s plan, you won’t be covered straight away. If you were to die during the initial one or two year period*, you would not be covered for the full cash sum.  However, the insurance provider would refund you one and half times your paid monthly premiums. * Plans vary depending on the life insurance provider

  • Providing you have kept up with paying your premiums, when you die the amount insured will be paid to your loved ones. Most over 50 life insurance plans now offer a funeral benefit option.  They vary slightly but typically, the money is paid directly to a specified funeral director to help pay for the cost of your funeral. Instead of having the money paid to your estate when you die. The option is usually free and in return, you get additional life insurance cover.

    If you are thinking about taking one of these plans out to help with funeral costs, it is worth looking at this option. It is important to keep in mind that you have to use that particular funeral provider in order to obtain the additional life cover.

  • Depending on the insurance provider you may not be covered for the full insured amount. If this is the case, the insurance provider would refund you one and half times your paid monthly premiums. * Plans vary depending on the life insurance provider

  • Yes, you are guaranteed to be accepted for over 50s life insurance. As long as you are an UK resident and aged between 50 and 85 years old.

Retired Couple Sitting Outdoors At Home Having Morning Coffee Together

Do I need over 50s cover?

If you are not sure if you need over 50s cover, here are some points to consider:

  1. Do you or your family have enough in savings to pay for your funeral?
  2. Would you like to leave a small gift for your loved ones when you die?
  3. Do you have any debts that will need to be paid when you die?

 

We are happy to talk through your options with you, including the option of Whole of Life insurance and level term insurance.

Is an over 50s life insurance policy worth it?

Here we discuss the positives, the negatives of an over 50s policy and the alternatives out there for your money.

  • The benefits of an over 50s policy are:

    • Guaranteed acceptance – you will be covered regardless of any health issues
    • No medical or health questions to answer – just a straightforward simple application
    • Affordable monthly payments – starting from £10
    • Guaranteed cash sum when you die – that can be used to help your family financially
    • Fixed monthly payments – can help with budgeting
    • Full life cover after an initial period of 2 years* – if you die within this period the money paid in will be refunded
    • Available to anyone in the UK between the ages of 50 – 80*
    • You choose how much you want to pay on a monthly basis or how much cover you need
    • Most over 50 life insurance plans now offer a funeral benefit option. They vary slightly but typically, the money is paid directly to a specified funeral director to help pay for the cost of your funeral. Instead of having the money paid to your estate when you die.

     

  • For a 60-year-old non-smoker:

    A whole of Life policy with a sum insured of £10,000 would cost £23.31 per month (subject to underwriting). Including indexation.

    An over 50s Plan with a sum assured of £10,079 would cost £34.00 per month. This cannot include indexation.

     

    Over just ten years the difference in premiums would be a substantial £1282.80. Quotes correct as of April 2022.

  • The downsides of an over 50s policy are:

    • Over time, inflation will reduce the value of the cash sum paid out at your death, so some insurers offer an indexation option to combat this. With these plans, the final sum increases in line with inflation as do the monthly premiums. Find out more about the importance of index linking here
    • The full cash sum assured is not payable within the first two years. However, if you pass away within the first two years, your estate will receive 150% of the premiums that have been paid. Should you have an accident and pass away, the full benefit or more will be paid
    • Over-50s’ plans are insurance schemes, so once the money is paid in, you can’t get it back. However, if you miss just one payment and the plan lapses ( ie ends due to non-payment) there will be no payout and you won’t get any of your premiums back
    • Depending on how long premiums are paid for, the total premiums paid may be greater than the cash lump sum payable on death 
    • An Over 50’s plan is likely to provide a lower sum assured than a fully underwritten policy on a like for like premium.  

    These plans are a good alternative for those who do not meet the required criteria for a whole of life policy. but it is always best to talk through your situation with an experienced adviser in the first instance.

Which insurers provide the best cover for people aged 50 and over?

To find which insurers provide the best cover for people aged 50 the comparison that we provide looks at policies across the market as a whole. 

Cheerful senior husband and wife enjoying online shopping

Which type of life cover is best for someone
over 50?

The best life cover for someone over 50 should be explored with an adviser. 

In the first instance and depending on your medical history, you should consider a whole-of-life policy before an over 50s plan

The reasons for this are based on cost and value.

With a fully underwritten whole of life plan, the sum assured will be payable immediately should you pass away. You wouldn’t have to wait one or two years of paying premiums before a payout would be guaranteed like an over 50s plan. 

A whole of life plan is also likely to provide a higher sum assured than an over 50s plan on a like-for-like premium. Meaning it is greater value for money.

Over 50s plans have their place if you:

  • Are seriously obese
  • Have a history of medical conditions
  • Have been recently diagnosed with a medical condition
  • If you have had a life insurance application declined and are over 50

Only if a whole of life plan is not possible, should an over 50s plan be considered.

Are there any types of life insurance you can’t get if you’re over 50?

If you have many and serious health conditions, it could be that you won’t be accepted for any underwritten life insurance plan. Meaning that the only option available to you would be a guaranteed over 50s plan.

We can help search the market for you to make absolutely sure that this is the case.

Can I get over 50s life insurance without a medical exam?

Yes, over 50s plans guarantee immediate acceptance without a medical exam. Or, any health questionnaires.

How long does a life insurance policy last?

How long a life insurance policy should last depends on what the policy is for:

  • For a mortgage, the policy should last until you have paid the mortgage off in full
  • For family cover the policy should last until your dependents are no longer dependent on you
  • For family income benefit, the policy should last until your children are grown up and out of private education or university.
  • For funeral cover, the policy if it is a whole of life one will last until you die.

What is a life insurance beneficiary?

A life insurance beneficiary is a person who will receive the insurance payout.

How much does an over 50 life insurance policy cost?

The table below illustrates how much an over 50 life insurance policy can cost. The sums insured differ per age and per fixed monthly premium.

Please note that any premiums mentioned are indicative only and based on this specific example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Age in yearsSum assured in £sMonthly premium in £s
60£5,929£20
70£3,282£20
60£14,822£50
70£8,206£50

Can I have more than one over 50s policy?

Yes, you can have more than one over 50s policy. We have been approached by clients needing to insure a larger amount. In situations like these, we help them to apply for another over 50s plan to cover a shortfall. Acting as a top-up policy can make more sense than reapplying for the whole amount. 

Firstly, premiums rise as you get older. So, the previous policy would be cheaper per the amount insured. Secondly, as the new policy will not pay out for another year or two depending on the insurance provider. Keeping the old policy will ensure that some insurance is paid out should the worst happen at the beginning of the new policy.

Can I get joint over 50s cover with my partner or a loved one?

No, over 50s cover is for single lives only. Joint life policies are not available.

The factors that affect the cost of over 50s life insurance are:

  • Age – the older you are when you apply, the higher your premium will be
  •  Amount of claims paid – the amount of claims paid out by an insurance provider will determine the cost of their insurance. We try to work around this by finding the most competitive premium for your age in the marketplace
  • The amount you insure – The higher the sum insured the higher the premium you will pay

 

An over 50s life insurance plan does offer good value for money IF you are not able to get a whole of life underwritten plan in the first instance. An over-50s plan does not take your health into account. This can be a big advantage if you are unable to obtain underwritten life insurance elsewhere.    

If you are in good health, then alternatives should be sought out. Such as a Whole of life insurance plan, which would offer you better value for money.

Our friendly award-winning advisers can search the market for you to find the best offers on over 50s cover. 

The following frequently asked questions relate to Over 50s plans health and medical screenings

  • Yes, over 50s plans guarantee immediate acceptance without a medical exam. Or, any health questionnaires.

  • An over 50s policy will only cover life and not critical illnesses.

  • Yes, you can get over 50s life insurance if you are a smoker. This type of plan is a good alternative for heavy smokers over 50 who can not get a fully underwritten whole of life plan.

  • Yes, you can get over 50s life insurance if you have a pre-existing medical condition. Depending on your condition, this type of plan is a good alternative if you can not get a fully underwritten whole of life plan.

close up hands multitasking man using  laptop

Can I get a quote for an over 50s policy online?

Whilst you will be able to get a quote for an over 50s policy online, considerations must be given to the differences between policies and insurers. An insurer with a big name and celebrity endorsement, may not necessarily mean that it offers the ‘best’ policy at the lowest price.

Our advisers can help you with this at no-obligation so you won’t get caught out by any small print.

The following questions are regularly asked by new clients about payouts and claims

  • The payout from an over 50s life insurance plan if you die, will be for the amount you have insured if you have placed the policy in Trust. 

    If you have not placed the policy in Trust, the payout will be added to your estate and may be subject to Inheritance tax. Future Proof offer a Trust service at no additional cost. 

    The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

     

    Trusts are not regulated by the Financial Conduct Authority.

     

    However, the full payout will not be paid out if you are to die in the two years no payout term after you have started the policy. If you die within this time, then your family will be refunded one and a half times your paid premiums.

  • You can match the amount you want to insure to the cost of a funeral. Or, when deciding on the amount to insure include the cost of a funeral in the amount that you want to leave as a gift to your loved ones. We can help you decide the right amount to insure for your own circumstances. 

    Nowadays, a funeral will typically costs around £4,383*.*The Money Advice Service – the annual SunLife Cost of Dying report 2020.

  • There is no cash value in an over 50s policy. Much like a car insurance plan, it ceases if you stop paying for it. There is no investment element in the plans that we advise on.

  • No, you will not get any money back if you cancel your over 50s life insurance before the end of the term period as there is no investment element in the policy. 

  • To ensure that your over 50s life insurance policy continues to provide cover, you need to keep up with your premiums. If you do not your policy will lapse and cancel after just one missed premium. You can stop paying at any time without penalty but it is worth checking that there is no longer a need for the policy before doing so.

    Some insurers will cease taking payments after a set number of years or when you reach a certain age. For example, after 30 years or turning 90, the cover will still stay in place. It is important that you are absolutely clear that your policy provider will do this and when.

How long does a life insurance policy last?

How long a life insurance policy should last depends on what the policy is for:

  • For a mortgage, the policy should last until you have paid the mortgage off in full
  • For family cover the policy should last until your dependents are no longer dependent on you
  • For family income benefit, the policy should last until your children are grown up and out of private education or university.
  • For funeral cover, the policy if it is a whole of life one will last until you die.

What is a life insurance beneficiary?

A life insurance beneficiary is a person who will receive the insurance payout.

Does an over 50s policy also cover seniors?

An over 50s policy is also sometimes called Seniors cover. It is the same policy, just by a different name. As long as the Seniors are between 50 and 85 and a UK resident, then they will be covered by an over 50s plan.