Guide to Over 50s Life Insurance

Researched & written by Kenzie S.

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We’re a non‑advised broker, so we don’t recommend specific products or insurers. This article is for general information only.

Read time:

3–4 minutes

Published on:

25 Jan 18

Life insurance can be difficult to understand sometimes, especially when you’re looking at over 50s life insurance… fundamentally, the purpose of life insurance is to provide financial support to your family when you die. It’s not something we like to think about, but it’s something we should all make the necessary arrangements for. It’s easier to push it to the back of your mind and keep putting it off… but have you thought about what would happen to your family if you weren’t around to support them?

It’s alarming that 1 in 4 breadwinners in the UK don’t have a life insurance policy – here’s what you can do to not be one of them if you’re over 50 and in need of a life insurance policy.

What is over 50s life insurance?

Over 50s life insurance plans are primarily used to pay for things like funeral costs or to provide some money for your family, like leaving behind an inheritance. This makes sense, because a large percentage of people over 50 would have already paid off some of the big debts in life, such as a mortgage and having young children, so there shouldn’t be too many costs for your family to be burdened with. The issue is, some life insurance policies for seniors tend to be more expensive when compared to a standard life insurance policy. This is largely down to statistics; you’re far more likely to encounter life threatening illnesses or pass away once you’re over 50.

How long am I covered on an over 50s policy?

Usually, the term will be for people aged between 50-75 years, however some providers do provide cover up to 80-85. You do have to also consider that, depending on the provider you chose, you may not be fully covered for the first 1-2 years. This is known as a qualification period. If you die during this time, your family would receive the premiums you’ve already paid but not the full lump sum. Some insurers may also include an additional percentage of payout.

How much does an over 50s life insurance policy cost?

Insurers can be quite flexible with pricing. To make this form of life insurance affordable and viable, you can choose how much you want to pay per month. This will then dictate the lump sum that will be available. The more you’re willing to pay in monthly premiums, the larger the lump sum will be for your family. If you’re a smoker, usually the monthly cost will be greater.

What are the benefits of an over 50s policy?

The great thing about choosing this form of life insurance for seniors is that these policies offer guaranteed acceptance. This means that you won’t have the frustrating back and forth trying to sort out medical checks and forms with the insurer and your doctor. Another great benefit is that once you reach 90 years of age, your premium payments will stop and your cover becomes guaranteed for the rest of your life.

Another great benefit of these policies is that you’re covered immediately for accidental death. Some insurers will pay out 3 times the agreed policy amount should accidental death occur – so if you’ve chosen to receive £12,000 and your death is accidental, they’ll pay out £36,000.

Are there any other options?

So you basically have three choices when it comes to insurance if you’re over 50: a level term life insurance policy, a whole of life policy or an over 50 policy. As mentioned above, over 50s policies don’t require medical checks, but if you’re in good health it might work out cheaper for you to compare life insurance policies. Our friendly team are more than happy to talk you through the options, and as we’re a non-advisory service we’re only interested in giving you the facts, not our opinions, so you’ll know you’re getting the best price available to you. It’s easy to get started – either give us a call or use our quote comparison service.