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||£90 of Nectar points + double points on shopping and fuel while policy is live||Double points activated straight away. Qualify for extra 18,000 nectar points after 5 months. If you spend £40 per week on shopping and £10 per week on fuel, this could be worth 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 Love 2 Shop||Qualify after 6 months premiums paid|
|SunLife||£3.70||£110 Love 2 Shop gift card||Qualify after 6 months premiums paid|
|Royal London||£7.00||£100 Argos/M&S gift card or £100 cash via cheque||Qualify after 8 months premiums paid|
|Post Office||£7.00||£100 Argos/M&S gift card||Qualify after 6 months premiums paid|
|L&G||£5.00||£100 Amazon/M&S gift card||Qualify after 6 months premiums paid|
SunLife currently offers the highest value free gift and will pay £110 worth of Love2Shop vouchers after 6 months. However, in terms of total value, if you have a Nectar card, you would be better off going with Sainsbury's as you would qualify for £90 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 of the free gift on offer.
- Sainsbury's - £90 Nectar points and double points for life - Biggest total reward (if Nectar member)
- SunLife - £110 Love2Shop voucher - Biggest single reward
- Royal London - £100 gift card or £100 cash via cheque - Biggest cash reward
- Direct Line - £100 Love2Shop voucher - 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:
- Guaranteed acceptance
- Premiums are fixed
- Full payout after one year
- 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.
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