For some people, it can be a struggle to secure affordable life insurance with a current medical condition or poor medical history. However, not all policies require medical information during the application process and it’s possible to take out cover where your health won’t affect the price of your premiums.
If you’re aged between 50 – 85, you could obtain a guaranteed over 50s plan. No medical questions or exam will be required when applying for a policy, which makes the application short and simple. For additional information see this comprehensive no medical life insurance guide from a leading UK broker.
In this article we explore in-depth why UK seniors should consider securing an over 50s plan.
What is over 50s life insurance?
Over 50s life insurance (also known as an over 50s plan) is a type of policy that provides a guaranteed pay out when you pass away in return for a monthly premium. It is an affordable way to protect your loved ones for the future.
This is a suitable option if you are looking to cover smaller things like a funeral or small inheritance, as opposed to a large mortgage or ongoing bills. This is because the maximum pay out is typically less than other types of policies (up to £20,000).
It is a popular option for those who may have a medical history or current health issues as, unlike most other policies, this information will not affect the cost of premiums or have to be disclosed at all when you apply.
Another reason why over 50s life insurance is so popular, is due to how quick, simple and affordable it can be. You will be accepted for a policy regardless of your health, and there are less questions to answer during the application process compared to other policies.
How much does a policy cost?
While you’ll not be asked any medical questions, premiums are calculated by your age, sum assured (how much you would like your pay out to be) and sometimes your smoking status, although this will depend on the insurer.
The prices and sum assured limits will vary, as well as the different benefits offered. It’s important to shop around for different quotes to find an affordable price.
Benefits of over 50 life insurance
There is a variety of advantages that come with an over 50s plan, making it ideal if you do have pre-existing health issues or if you have previously been declined. Every insurer will offer different benefits, however most include:
- Funeral benefit option
Option to choose if want your pay out to go directly to a funeral provider. Using this free benefit means there will be some extra money contributed to your funeral fund (usually £250/£300)
- Welcome gift card
A voucher incentive to use at selected stores if you take out a policy (terms and conditions will depend on the insurer)
- Free cover after a certain age
With some insurers you can stop paying for your premiums when you reach a certain age (usually 90/95) and your cover will remain in place
- Fixed monthly premiums
Your premium price is guaranteed to remain the same every month
- Accidental death cover
Insurers usually implement a 12 – 24 month waiting period when you take out a policy to help reduce their risk of a pay-out. During this period, you’ll be fully covered for accidental death but not natural death
- Terminal illness cover
It allows you to make an early claim on your policy if you’re diagnosed with a terminal illness, however not often included in an over 50s policy
What other policies are there?
There are many different types of life insurance policies; over 50s, whole of life and term life insurance being the most popular.
An over 50s policy is usually ideal for covering things like rising funeral costs, as the pay out is lower than other types of policies. However, whole of life and term policies tend to offer larger pay outs, which can help to cover larger expenses like a mortgage or funds for childcare/education.
Alternative options include:
| Whole of life | Level Term | Decreasing Term |
| 1.Covered for all of your life 2.Guaranteed cash payout when you pass away 3. Pay out amount stays the same 4. Usually the most expensive type of cover | 1.Covered for a certain period (the term) 2. Pays out if you pass away during the term 3. Usually more expensive than decreasing term) 4. Pay out amount remains the same during the term | 1. Covered for a certain period (the term) 2. Pays out if you pass away during the term 3. Usually cheapest type of life insurance (risk to the insurer reduces) 4. Pay out amount decreases during the term |
Over 50s life insurance considerations
When securing a policy, it is important to acknowledge all aspects and make sure that the policy type is suitable to your needs. Although an over 50s policy has many positives, there are some things to consider:
- A lower max pay out, usually of £20,000. If you were looking for a higher amount of cover, whole of life insurance may be a better option
- The waiting period. The policy will not pay out the full sum assured if you pass away during the waiting period (the first 12 or 24 months depending on the insurer)
- Risking paying more than you get out. If you fortunately live a long life after buying your policy, it could result in paying more into the policy than the lump sum paid out when you pass away.
How do I secure over 50s life insurance?
There are many ways to look for a policy, but to find your best deal, will be down to having a shop around first. Most people do this by comparing quotes with brokers, comparison websites or directly through an insurer. It’s sensible to compare quotes sooner rather than later to lock in a cheaper premium for the lifetime of your policy.
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