Over 50s Life Insurance
Written by Check Financial · 3 min read
The short answer
Over 50s life insurance pays a fixed lump sum when you die, with guaranteed acceptance and no medical questions for people in the eligible age range, usually 50 to 80. Premiums are fixed, and it is often used to help with funeral costs or leave a small gift.
Who It's For
Over 50s cover suits people who want a modest, certain payout and might struggle to get other life insurance. It is often worth considering when:
- You want to help your family with funeral costs.
- You'd like to leave a small gift to children or grandchildren.
- Your health means fully underwritten life insurance would be difficult or very expensive.
If you're in good health, check other options first. Fully underwritten whole of life cover can give more cover for the same premium. We'll compare both for you.
How It Works
- You're accepted without medical questions, as long as you're within the insurer's age range.
- You choose a monthly premium or a cover amount, and both are fixed from the start.
- There is usually a waiting period, often the first one or two years. If you die from natural causes during it, the policy typically refunds the premiums paid, or a set percentage of them, instead of the full amount. Accidental death is usually covered in full from the start.
- After the waiting period, the full amount is paid whenever you die.
On some policies, premiums stop at a set age, often 90, and the cover continues.
How Much Cover, What It Costs and Tax
How much cover. Amounts are usually modest compared with other life insurance. People often base it on the expected cost of a funeral or the gift they want to leave.
What it costs. The premium depends mainly on your age when you start, the amount of cover and whether you smoke. Health doesn't affect the price, because there are no medical questions. If you live a long time, you may pay in more than the policy pays out.
Tax. The payout isn't subject to income tax. It could form part of your estate for inheritance tax unless the policy is written in trust. We'll explain how this works when we set up the policy.
What It Doesn't Do
- It doesn't pay the full amount during the waiting period, except for accidental death.
- It isn't a funeral plan. It pays a cash sum to your family, rather than paying for a funeral directly.
- The payout doesn't usually rise with inflation, so it buys less over time.
- If you stop paying, the cover ends, usually with nothing back.
Real Scenario
Example scenario, not a real client
Making Sure the Family Isn't Left with the Funeral Bill
A 68-year-old with a long-term health condition wants to make sure their children won't have to pay for their funeral.
Outcome: Fully underwritten cover would be costly with their health history, so they take out over 50s cover with guaranteed acceptance and a fixed premium.
Common Questions
Will I be accepted?+
What happens if I die in the first two years?+
Do the premiums go up?+
Can I pay in more than my family gets back?+
How is this different from whole of life insurance?+
Related Guides
Whole of Life Insurance
Read guide →Guaranteed Acceptance
Read guide →Trusts
Writing a life insurance policy in trust means the payout goes to people you choose, through trustees, rather than into your estate. It can mean your family receives the money sooner, and it is usually kept outside your estate for inheritance tax.
Read guide →This guide is general information, not personal advice. Check Financial Ltd is an appointed representative of Capital Protect Ltd, authorised and regulated by the Financial Conduct Authority.