What is over 50s life insurance
Over 50s life insurance pays out a guaranteed cash lump sum when you die. Most insurance companies stipulate that you need to be aged between 50 and 80 to apply, acceptance is guaranteed and the payments are fixed throughout the term of the policy, so you'll always know how much you have to pay each month.
Over 50s life insurance is a simple way to leave money to your family when you die. The money can be used towards funeral costs, pay outstanding bills or simply to provide a cash lump sum for your family. We explain the best way to buy over 50s life insurance later in this article (and it isn't by using one of the big online comparison sites)
Over 50s life insurance: Best free gifts comparison
| Company | Minimum Premium | Free Gift | Qualifying Period |
| Sainsbury's | £5.00 | £100 of Nectar points + double points on shopping and fuel while the policy is live |
Double points activated straight away. Qualify for extra 20,000 nectar points after 5 months. If you spend £40 per week on shopping and £10 per week on fuel, this could be worth an additional £25 each and every year
|
| Churchill | £5.00 | £100 Amazon/M&S/Tesco gift card | Qualify after 6 months premiums paid |
| Direct Line | £5.00 | £100 Love2Shop/Amazon/M&S gift card | Qualify after 6 months premiums paid |
| SunLife | £3.70 | £120 Love 2 Shop gift card | Qualify after 6 months premiums paid |
| British Seniors | £4.32 | £100 M&S gift card | Qualify after 6 months premiums paid |
| Post Office | £7.00 | £100 Argos/M&S gift card | Qualify after 6 months premiums paid |
| L&G | £5.00 | £120 Amazon/M&S/Argos gift card | Qualify after 6 months premiums paid |
SunLife and Legal & General offer the highest value gift card currently offering £120. However, in terms of the total value, if you have a Nectar card, you would be better off going with Sainsbury's as you would qualify for £100 worth of Nectar points after 5 months and double points for the life of your plan. If you spend around £40 per week on shopping and £10 per week on fuel, this could be worth an additional £25 per year for the life of the policy.
Best over 50s life insurance for free gift
Below we rank the top 5 over 50s life insurance providers based on the value and flexibility offered through their free gifts.
- Sainsbury's - £100 Nectar points and double points for life - Biggest total reward (if Nectar member)
- SunLife - £120 Love2Shop voucher - Flexible voucher, multiple retailers
- Legal & General - £120 gift card M&S/Amazon - Option to spend at Amazon, M&S and Argos
- Direct Line - £100 Love2Shop/Amazon/M&S - Flexible voucher, multiple retailers
- Churchill - £100 gift card - Option to spend at Amazon, Tesco and M&S
Over 50s life insurance - Pros and Cons
Like all insurance, over 50s life cover has its pros and cons. We have summarised the key points below:
Pros
- Guaranteed acceptance
- Premiums are fixed
- Full payout after one year
Cons
- No payout if the plan is cancelled
- You could pay more in premiums than you receive as a payout
- Depending on your age and health, it may be more expensive than traditional term insurance
Should I get over 50s life insurance?
Over 50s life insurance provides an affordable way of buying a small amount of life insurance, especially for those that have suffered ill health in the past. It is worth mentioning however that those in their 50's and 60's and in good health may be better off looking at traditional life insurance (often referred to as term insurance) rather than over 50s life cover as they will be able to get far more cover for their money.
To illustrate this point, L&G will offer a 50-year-old non-smoker just under £3,000 as a lump sum payout on a £10 a month over 50s life insurance plan, whereas they would offer a lump sum payout of £30,000 on a term assurance policy; that's 10 times the amount of cover. Remember though that any application would be fully underwritten, meaning the insurance company will ask for full medical details and may even request to write to the GP.
What is the best way to buy over 50s life insurance?
The quickest way to find the best over 50s life insurance for you is to complete an online over 50s life insurance comparison quote with Assured Futures*. Quotes can be completed in a matter of seconds and you can apply for the cover straight from the quote page. Additionally, if you need any help, it has a team of expert advisers that are ready to answer any questions you may have.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses - Assured Futures
