Compare over 50 life insurance UK

Over 50 life insurance is worth it for many people who would like to leave a cash sum for their loved ones when they pass away and help relieve some financial worry during a difficult time.

However, to ensure that you’re making a fully informed decision about whether this policy is right for you, it’s important to consider the following points:

• If you’re in good health then other types of life insurance may be more suitable and less expensive, such as term life insurance
• Depending on when you take out the policy and how long you live, it’s possible that you could pay more into the policy than what’s paid out to your loved ones
• The policy pay out isn’t protected from inflation, which means the value of your cash sum could reduce over time

Over 50 life insurance premiums are calculated using your age and sum assured. Some insurers may also require your smoking status.

All over 50 life insurance premiums are fixed - meaning your monthly payments will never increase, no matter how long you live for.

If you miss a monthly payment, your policy will be cancelled unless you can pay the outstanding amount within a specified time frame (usually 30 days).

If your policy is cancelled due to a missed monthly payment, you won’t receive a refund of any premiums paid.

Yes, with some insurers it’s possible to reduce your monthly premium amount. Doing this will also reduce the pay out amount.

Being able to reduce your monthly premium may be helpful if your circumstances change which can affect your budget.

Most over 50s plans don’t include terminal illness cover as the risk to the insurer is already increased due to no medical information being provided.

However, the exception to this is One Family who offer terminal illness cover as standard with their over 50s plans.

Terminal illness cover allows you to make an early claim on your policy if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.

The pay out received can help pay for private medical treatment or help you get your financial affairs in order.

Critical illness cover can’t be added to an over 50s plan or whole of life insurance.

Critical illness cover is typically added to a term life insurance policy, for an additional cost, to provide an extra safety net.

It will provide a lump sum pay out if you’re diagnosed with a serious illness (that’s listed within the policy).

The funds from this can help to replace lost income while you’re unable to work and/or to cover private medical fees.

Some insurers offer a funeral benefit option (also known as a funeral funding option) with their over 50s plans.

This is a free option which can be included with your policy to ensure that your cash pay out is paid directly to a funeral provider to help cover your funeral costs.

The funeral provider will also provide a discount for your funeral when the time comes, usually £250 or £300 off the final bill.

Unfortunately, it’s not possible to take out a joint over 50 life insurance policy.

Due to no medical information being disclosed, the risk to the insurer is unknown - adding a second life to the policy increases the risk further.

However, if you’re still in good health and opt for term life insurance or whole of life insurance, you could secure a joint life insurance policy.

Reassured can take your needs into consideration and provide you with the most suitable options for your circumstances.

Yes, it could be possible to write some over 50 life insurance policies in trust.

By writing your life insurance in trust you sign your policy over to a trustee upon your passing (similar to an executor of a Will).

This process detaches the proceeds of your life insurance policy from your estate and provides the following benefits:

1. Inheritance tax is minimised/avoided (40% inheritance tax is applied on any amount that takes an estate over the threshold of £325,000)
2. The probate process can be bypassed (allowing a faster pay out)
3. More control over who gets what (your trustee will be responsible for distributing the funds as per your wishes)

At Reassured we offer a free trust writing service on the majority of the policies we arrange, where our trained staff can guide you through the process.

Yes, like traditional life insurance, it’s possible to have multiple over 50s plans.

The sum assured for over 50 life insurance tends to be much smaller than term-based or whole of life insurance policies.

As a result, taking out multiple policies could allow you to secure a higher level of cover.

However, most insurers tend to have a maximum cover amount. For example, with One Family, you can take out a maximum of £20,000 as one policy or across multiple policies.

Many insurers also have a maximum premium amount (for example, with SunLife, this is £100), meaning you won’t be able to take out cover which exceeds this amount.

Therefore, if you’re looking for a higher level of cover, you may need to take out multiple policies with multiple insurers.

Yes, an over 50s plan could still be a great policy option for those aged 60, 70 and beyond, as acceptance is guaranteed up until age 85.

However, ultimately, it depends on your individual circumstances; age, health, budget and what you need to cover.

We have produced three in-depth articles which delve into the different options available to those in their 60s, 70s and 80s:

• Life insurance for over 60s »
• Life insurance for over 70s »
• Life insurance for over 80s »