In this article we look at over 50s life insurance and explain how it works, how much it costs and where best to buy it.
How does over 50s life insurance work?
Over 50s life insurance is a simple policy where you pay a set monthly premium for a guaranteed cash lump sum. There is no medical underwriting, meaning the insurance company is guaranteed to accept you without you having to answer any tricky medical questions, however the potential payout will be relatively small in comparison to traditional level term insurance. You'll need to be aged 50 to apply and keep up with payments in order to guarantee a payout.
Is there a minimum premium you have to pay to guarantee a payout?
Insurance companies require a minimum number of premiums to be paid before they will pay out a policy in full, some require 12 months, while others will insist on 24 or 36 months. If you die before the minimum requirement is met, your premiums will be refunded in full and some insurance companies will add a 50% bonus as a goodwill gesture. Check out our table further down for more information.
Which is the best and cheapest over 50s life insurance plan?
This is a tricky one to answer as there are a lot of things to consider and so it is often best speaking to an independent specialist rather than simply using a comparison site or online life insurance calculator. An independent specialist* will be able to ask additional questions to check that over 50s life insurance is suitable for you and they can help to complete the application forms and even make recommendations based on which insurer has the best claims record.
We have looked at over 50s life insurance quotes from 8 of the top insurance companies and listed them in order of biggest to smallest payout.
Best and cheapest Over 50s life insurance quotes based on a 50-year-old non-smoker paying £10 per month
| Insurance Company | Cash Payout | Qualifying period | If you die in qualifying period | Age premiums stop |
| Assurity | £4,172 | 36 months | Premiums returned | 90 |
| Shepherds Friendly | £3,880 | 24 months | 150% of premiums returned | 80 |
| National Assurance | £3,876 | 24 months | Premiums returned | 85 |
| AIG | £3,868 | 24 months | 150% of premiums returned | 90 |
| One Family | £3,528 | 24 months | 150% of premiums returned | 90 |
| L&G | £2,923 | 12 months | Premiums returned | 90 |
| SunLife | £2,867 | 12 months | Premiums returned | N/A |
| Royal London | £2,629 | 12 months | Premiums returned | 90 |
As you can see from the table above, Assurity provides the most cover for a 50-year-old non-smoker paying £10 per month, however there is a longer qualifying period than any other insurer and premiums stop at 90, compared to 80 or 85 with other insurers. It is often better speaking to an independent over 50s life insurance specialist as they can look at all of these factors for you, as well as checking for any free gifts that may be available. Howden Life & Health* is one of the UK's leading over 50s life insurance specialists, providing quotes for major comparison sites such as MoneySuperMarket. You can get a tailored quote in just a few minutes with one of its expert advisers and if happy they will help you to complete the application forms.
It is worth mentioning that insurance providers such as Churchill and Direct Line do not work with online comparison sites and so you would need to go to them directly to receive a quote.
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 - Howden Life & Health
