We all want to look after our loved ones when we die and make sure they are financially sound.
An over 50s life insurance plan can guarantee a cash lump sum that doesn’t depend on your medical condition or lifestyle.
In This Guide:
- What is over 50 life insurance?
- Who needs an over 50 life insurance policy?
- How much does an over 50s life insurance policy cost?
- Over 50s life cover policy exclusions
- Important things to know about getting life insurance over 50
- What is the difference between life insurance and over 50s life insurance?
What is over 50 life insurance?
Like standard life insurance plans, over 50s life insurance will pay out a lump some in the event of death. Unlike standard plans though, over 50s insurance doesn’t require any medical underwriting for you to get approved.
Anyone over the age of 50 is qualified to take out a plan and no pre-existing medical conditions will affect your eligibility.
You can take out a plan at any age between 50 and 85, and once you turn 90 you will not have to pay any premiums for your cover and will still be entitled to the full cash sum.
This is often the best life insurance policy available if you are over 50 and in ill health, but may not be as suitable for those in a relatively clean bill of health.
Taking out a policy, you will be liable to keep up with monthly payments to keep the policy live.
The money will be paid out as a fixed lump sum and can be used for as you like. It can be used to pay off debts or any inheritance tax, to cover funeral costs, or to leave your loved ones a gift.
Who needs an over 50 life insurance policy?
This largely depends on you, your lifestyle, finances, and how you want to leave your estate when you are gone.
For instance, if you don't have any dependents and are financially sound, you might not need an over 50 life insurance policy. However, if you do have dependents and a mortgage to pay off, it might be prudent to look into taking out a policy.
We recommend weighing up the points below and working out whether they apply to yourself or not, if you are unsure whether you need an over 50 life insurance plan or not:
Potential reasons to take out an over 50s plan:
You have a mortgage that you would like to be paid off or its payments covered if you pass away.
You have children or a partner that you would like to be looked after financially.
You want to make sure your funeral expenses are covered.
You want to leave a gift to your family should you pass unexpectedly.
Potential reasons to not take out an over 50 life insurance policy:
You don't have any dependents that will need looking after.
Your partner will be able to financially support your family if you passed away.
How much does an over 50s life insurance policy cost?
The amount you're quoted will be based on certain criteria, including your age, medical history, current lifestyle, and personal circumstances.
Most policies cover a 10 year term of up to £100k cover with no critical illness cover. This will vary between insurers so check your overall term and payout when searching quotes.
The best way to find out how much an over 50s life insurance plan will cost you is to speak with one of our advisors.
If you click the "get quote" button below and input your details, you will then be on your way to finding out how much an over 50 plan will cost you.
Over 50s life cover policy exclusions
As with all types of insurance policies, there are exclusions in place for over 50s plans that will result in no pay-out if you die under certain circumstances. These most commonly include:
If you die within a year of starting your policy
Death from drug or alcohol abuse
These exclusions may vary between providers so always check the terms and conditions before agreeing. There are also often certain exceptions to these exclusions, such as if your death is caused by an accident within the first year of your policy.
Important things to know about getting life insurance over 50
Over 50s life insurance is not a savings or investment product and therefore holds no cash value without a claim being made
If you pay for a plan over a long period of time, your premiums could equate to more than the total payout
All payouts are fixed so inflation will reduce its value over time
It is not designed to cover the cost of funeral expenses and the amount paid out is not guaranteed to do so
If you stop paying premiums your plan will be cancelled and you will not receive a payout
You can reduce your premiums (normally after a year) but this will also reduce your cash sum
What is the difference between life insurance and over 50s life insurance?
There are a few key differences between a standard life insurance plan and an over 50 life insurance policy:
Over 50 life insurance is a 'whole of life policy'. This means that your policy will cover you for the rest of your life - as long as you keep up with monthly premiums. A standard life insurance policy is a 'term policy'. This means that it will cover you for a specific amount of time (e.g. 5 or 10 years), and will end when the policy period finishes.
An over 50 life insurance policy can usually only be taken out if you are aged between 50 and 85. A standard life insurance policy can usually be taken out between the ages of 18 and 75.
An over 50 plan will have fixed monthly premiums whilst you continue the plan. Standard life policies monthly payments may change every time you take out a new policy.
With over 50's life insurance, acceptance is guaranteed - you don't need to answer medical questions or submit details of your financial status. This is not necessarily the case with standard life insurance policies.
Once you reach the age of 90, or have had a policy for 30 years, many insurers will start waiving monthly payments.