What is Over 50 Life Insurance?

By Vicki Coleman

Whether you’re in the ‘life starts at 50’ camp or have had some mortality fears coinciding with your 50th birthday, now’s the time to start thinking about life insurance.

The good news is that there are insurance policies tailored for those who have just hit the milestone of half a century (sorry for that reminder). But there’s plenty to weigh up before committing to a single policy which is designed to cover you for the rest of your life.

With an over 50s life insurance plan in place, your loved ones will get a lump sum to cover things like funeral expenses or outstanding debts. So, just like any life insurance policy, then – but there are a few subtle differences to take into account.

What’s different about over 50s life insurance?

As you might’ve guessed, this particular product is only available to you if you’re aged between 50 and 80.

It’s designed specifically to meet the needs of older people by guaranteeing them some level of protection, with no medical questions asked. As long as you keep up with your payments, the policy will pay out upon your death.

So, if you’re struggling with a health issue or worried about your lifestyle impacting your ability to get ordinary life insurance, over 50s life insurance provides some reassurances.

Do you need over 50s life insurance?

It’s a personal decision. But if you’ve left it until your 50s (or older) to take out life insurance, you could now find the price of ordinary life insurance to be a little punchy.

According to a recent study[1], only 33% of UK adults over 50 are covered with life insurance. More than a quarter of over 50s surveyed said they had no interest in engaging with end-of-life planning.

Interestingly, 18% of respondents were under the impression that if they were over 50, they were ‘too old’ to apply for life insurance. This would suggest that many over 50s aren’t aware of all the life insurance options available to them.

Instead, many (52%) people say they would prefer to put their cash into savings plans than take out cover.

Savings vs over 50s life insurance

It’s a legitimate decision to weigh up whether it’s worth paying insurance premiums each month or to put the money into a savings account.

If you take out cover early, it’s possible you could end up paying in more than your policy ends up paying out. That depends on your level of cover – the higher the agreed lump sum, the higher you’ll pay in monthly premiums, so over 30+ years, you could out-pay your payout.

However, life insurance provides some guarantees that appeal to people – for example, your monthly premiums will be fixed, even with inflation, no matter how long you stay on the policy.

Some insurers even agree to stop taking payment from you once you reach a certain age, whilst keeping your policy open.

Savings just can’t offer the same kind of guarantees. You never know; you might end up dipping into them at some point to pay for some unexpected costs or even pay for your retirement.

Before making your decision, it’s a good idea to get some quotes and to do the maths. Of course, you can’t predict how long you’re going to live for, but making some projections will provide you with some confidence that you’re making the right financial call, at least.

How much is over 50s insurance going to cost?

Over 50s life insurance premiums start from as little as £5 a month. The price you’re quoted will be based on a number of key factors:

Your age

The older you are, the higher your premiums. That’s why it’s best to get cover as soon as possible – you’ll be locked into a lower rate for the rest of your life, and you’ll barely notice it go out of your bank account every month.

Your lifestyle

Insurance is typically more expensive for people who smoke, since there’s a higher risk of health complications. But if you take out cover early enough, you might not see a great deal of difference in cost.

Your lump sum

Think carefully about how much money your loved ones will need. Naturally, you’ll want to ensure they have as much money as possible so that they not only have enough to cover funeral costs, but also provide some kind of inheritance they can put to good use. But remember, a bigger payout means higher premiums.

Your provider

Some providers give a better deal than others. That’s why it’s always best to shop around for the right policy and get plenty of high-quality quotes.

Speaking with an expert can really help you understand the best deal for you. With age and payout to factor in, life insurance works on a sliding scale – it’s about finding that sweet spot.

Compare over 50s life insurance

You have nothing to lose from generating some quotes to see if you can bag yourself a great deal on over 50s life insurance. Our experts are trained to match policies to individual needs – so you tell us the level of cover you want and we’ll provide you with options.

At QuoteSearch, we’re happy to get as many quotes that you need so that you can make your mind up. We don’t have any favourite suppliers – the quotes that you see are comprehensive and competitive.

So, don’t be shy in requesting quotes for different types of cover, until you find that sweet spot!

To compare your free over 50s life insurance quotes from leading providers, click here.

[1] https://insurtechdigital.com/life-and-pensions/just-33-uk-over-50s-have-life-insurance-during-covid