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.
Life insurance for over 50s
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.
Over 50s life insurance costs
The amount you're quoted will be based on certain criteria, including your age, medical history and current lifestyle.
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.
Over 50s life insurance is incredibly popular because as long as you are of age, you are guaranteed to get a plan. There are no medical tests or health-related questions that need to be answered when taking out an over 50s plan, and your health and financial situation will not affect your eligibility.
The moratorium, or qualification period, is the time agreed from when the policy is taken out until the full lump sum of the insurance will be paid. Effectively, this means that you will need to survive for an agreed amount of time, normally between one and three years, before your life insurance will be paid out. If you die in this time the amount paid into your policy will be paid back but you will not receive the full lump sum.
This period varies between providers so always check the fine print.
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 over 50s life insurance
- 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