Over 50s life insurance – What are the best buys?

8 min Read Published: 12 Nov 2021

Best over 50s life insuranceIn this article, we look at over 50s life insurance and list our best buys based on a number of factors, including best over 50s life insurance for smokers, best over 50s life insurance for non-smokers, best free gift included with over 50s life insurance and finally the best way to buy over 50s life cover in the UK.

This article doesn't go into detail about the pros and cons of over 50s life insurance and whether you would be better off buying other types of life insurance such as level term assurance. For the purpose of this article, we have assumed that you understand what over 50s life insurance is and what it covers. Feel free to check out our article 'Which is the best over 50s life insurance?' if you are unsure.

Understanding our best buy tables

  • Rank - Our overall rank takes all factors (listed below) into consideration and so the company that provides the highest death payout may not necessarily feature at the very top. For example, a company that requires you to pay your premiums for a shorter time before you can make a full claim and one that stops charging you for the cover at an earlier age will sit further up the rankings.
  • Death payout - This is the amount that will payout when you die (after the qualifying period) and is based on a monthly premium of £20.
  • Death payout claimable after initial / Qualifying period - This is the minimum period that you would need to have paid premiums for in order to receive a full payout. A shorter qualifying period is better as you will qualify for a full payment sooner. For example, using our table below, if you died 13 months after taking out a policy, only Forever Assured and Sun Life would provide a full payout, the rest would simply return 100-150% of the premiums you had paid up until the point that you died. If the death is accidental then usually the qualifying period is waived and you would receive the full payment even if you hadn't completed the qualifying period.
  • Monthly payments stop at age - This is the age at which you would stop paying premiums and the policy would guarantee to payout in full whenever your death happened after this point. For example, a 60-year-old paying £20 per month, would pay a total of £6,000 in premiums on a policy with a maximum age of 85, whereas they would pay £7,200 on a policy with a maximum age of 90. This has to be balanced with the fact that you would pay the same on either policy if death happened before age 85.

60-year-old non-smoker - £20 per month premium

Rank Company Death Payout Death payout claimable after initial: Monthly payments stop at age:
1 Forever Assured £5,116 12 months 90
2 Sun Life £4,898 12 months n/a
3 Shepherds Friendly £5,929 24 months 90
4 One Family £5,217 24 months 90
5 Royal London £5,008 24 months 95
6 National assurance £4,769 24 months 85
7 National friendly £4,534 24 months 90
8 Assurity £5,337 36 months 90

We have placed Forever Assured at the top as they provide the largest death payout with the shortest qualifying period and a mid-range age to which the premiums may need to be paid.

Shepherds Friendly offers the largest amount of payout but you have to spend an extra year paying your premiums to qualify for a full payout. It is important to note that the quotes we have obtained are based on a 60-year-old non-smoker. Quotes are likely to be different depending on your age and so we would always recommend that you conduct your own search so that you can receive your own tailored quote.

60-year-old smoker - £20 per month premium

Rank Company Sum Assured Qualifying Period Maximum Age
1 Forever Assured £3,072 12 months 90
2 Legal & General £2,777 12 months 90
3 Royal London £2,699 12 months 95
4 Shepherds Friendly £3,102 24 months 90
5 One Family £2,978 24 months 90
6 National Friendly £2,915 24 months 90
7 Sun Life £2,915 24 months 95
8 Direct Line (provided by AIG) £2,748 24 months 90

We have chosen Forever Assured as our top pick due to the fact that they offer one of the largest amounts of payout with the shortest qualifying period and earliest age to stop paying your premiums and still be covered.

You may also notice that Sun Life are second from the bottom of our comparison table, whereas they came out in second position in our previous search. This further highlights the need to search the whole of the market in order to find the best over 50s life insurance quote for your own personal circumstances.

Best over 50s life insurance with free gift

When considering free gifts, it is important to understand the true value of the gift. The company that offers the best free gift may actually provide the lowest amount of cover and so you need to understand what is most important to you. Would you prefer to receive a £50 gift voucher or would you be better off being insured for more or receiving additional benefits, such as additional illness cover?

At Money to the Masses we have reviewed over 50s free gifts and you can find the best offers in our article, "Over 50s life insurance: We rank the best FREE gifts"

The best way to buy over 50s life insurance

Firstly, make sure that over 50s life insurance is right for you, check out our article, "Which is the best over 50s life insurance?" if you are unsure. Always make sure that you do a price comparison, don't settle for the policy that a friend bought or the one that offers the best free gift. There are many companies such as Assured Futures* that can provide help when choosing the best policy for your own personal circumstances and you can contact them here with no obligation to take things further. They go a little further than most price comparison sites as they provide additional tools such as funeral cost calculators and also risk calculators.

Finally, make sure you keep up with the premiums because if you cancel your direct debit or are unable to pay the premiums, the policy can be cancelled and you will be without cover.

 

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 or take advantage of any exclusive offers - Assured Futures