In this article, we will help you understand what over 50’s life insurance is, whether it is right for you and how to identify the best over 50 life insurance provider at the best cost. We would recommend that you read the whole article as we explain when over 50 type of life insurance may be right for you, but crucially, where you may be better off looking at other types of life covers and where you can find the best life insurance solution for you.
What is over 50s life insurance?
Over 50s life insurance is a type of life insurance policy for anyone aged over 50 and normally requires no health check to qualify. Premiums are paid monthly or annually and so long as premiums are kept up to date, this type of life insurance policy is guaranteed to pay a lump sum of money when you die.
It is often bought as a funeral plan to cover funeral costs but it is important not to confuse funeral plans with over 50 life insurance. Funeral plans for over 50s usually pay the funeral directors directly whereas Over 50 life insurance will normally pay the lump sum of cash to the deceased's nominated beneficiary. They can, of course choose to use the cash to fund a funeral if needed but this is not a requirement of the over 50s life insurance plan.
Over 50s life insurance key features
| Over 50 life insurance key feature | How it works |
| Qualifying criteria |
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| Cover amount |
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| Premiums |
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| Payout |
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How much does over 50s life insurance cost?
Premiums start at around £5 per month for most insurers and they tend to increase in £1 increments up to around £75 per month for the most expensive plans. The insurance company will require that you pay your premiums until you die or until the age that premiums become paid up - this varies between age 85 and 95. Depending on how long you live you could pay more than will be paid upon your death so do keep this in mind when selecting your insurance. If you're not sure then speak to an Over 50s life insurance specialist* free of charge to ensure you're making the right choice.
Most insurers will lure you in with the promise of a free gift, such as a gift card or shopping voucher after paying a certain amount of monthly premiums which is a nice incentive, but always make sure that the cover is right for you and never let the free gift inform your buying choice. If you are in any doubt as to whether an over 50 life plan is for you, we would recommend that you speak to an independent expert as they will be able to quickly ascertain whether you would be better off buying a different type of cover.
Below we have summarised the cost of £5,000 of over 50s life insurance cover for both a smoker and non-smoker. We have looked at cover for a 50-year-old, 60-year-old and 70-year-old.
Cost of £5,000 over 50s life insurance for a non-smoker
| Age and smoker status | Premium | Insurer |
| 50-year-old non-smoker | £12.00 | Assurity |
| 60-year-old non-smoker | £16.00 | Shepherds Friendly |
| 70-year-old non-smoker | £30.00 | Shepherds Friendly |
Cost of £5,000 over 50s life insurance for a smoker
| Age and smoker status | Premium | Insurer |
| 50-year-old smoker | £16.00 | Assurity |
| 60-year-old smoker | £25.00 | Assurity |
| 70-year-old smoker | £52.00 | National Friendly |
Which company offers the best over 50s life insurance?
There are a number of companies that offer over 50s life insurance including Sun Life, Aviva, Legal & General, Royal London and even the Post Office. People commonly associate this type of cover with the Sun Life funeral plan or other Sun Life packages of life insurance. Our own research shows that the Sun Life Plan is one of the less desirable products on the market as it has no 'paid up insurance age' meaning you would need to continue paying for your Sun Life life insurance until you died whenever that may be. This type of difference can mean that you get a lot less value for your money if you were to live a long and full life.
It can be a time-consuming exercise to work out which company is the best for you and so you should consider using a specialist over 50s life insurance comparison service such as Assured Futures*. Its online comparison site will compare quotes from the top providers in seconds and you can apply for the cover straight from the quote. Its team of over 50s life insurance experts can be on hand if you need any help throughout the process, are happy to answer any of your questions and the service is completely free.
Things to consider before you buy Over 50s life insurance
Minimum Payments
Most insurers won't pay out the full sum assured unless you have paid a certain number of premiums. This is typically one, two or three years' worth of premiums. If you die within this period your family will typically receive a sum equal to the number of premiums that you've paid up until the date of death. However, if your death is a result of an accident then most insurers will still pay out the full sum assured.
Inflation
Another thing to be aware of is that inflation will likely erode the real value of your cash lump sum payout over time. As the cash sum is fixed, the longer you live, the less the payout is worth. You can of course offset this at the time of taking the policy by taking out slightly more cover, but this will come at an extra cost. It is entirely possible that if you live a long and healthy life, you may end up paying more in premiums than you could ever receive as a payout. If you are concerned by this then perhaps Over 50s life cover isn’t for you and you may be best putting your money into investments, savings or a different type of life insurance.
Free Gifts
As mentioned earlier, beware of any free gifts. Most insurers will offer a free gift and while it may be tempting to go with the insurer that offers the best gift, it may well be the most expensive insurer for your circumstances.
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