Over 50s life insurance

Life insurance provides a tax-free lump sum for your loved ones when you die, in return for monthly premiums paid during your lifetime. If you're over 50, most providers offer policies specifically designed to meet your needs.

What is Over 50s life insurance?

This type of policy provides whole-of-life cover, so your beneficiaries are guaranteed to receive a payout eventually – as long as you keep paying your premiums. This is different to term life insurance which only covers you if you die during the term agreed when you take out the policy.

When you take out the policy, you will choose a monthly premium which you'll then pay either until you die, or (with most insurers) until you reach the age of 90, after which you are still covered but with no more premiums to pay.

When you die, your loved ones will receive a payout, the size of which will depend on factors like your age, whether you're a smoker and the size of your premiums.

No medical – guaranteed acceptance

One of the main advantages of an Over 50s policy is that, as long as you're under 75, you're guaranteed to be accepted without having a medical of any kind. With other policies, people with shorter life expectancies or pre-existing conditions will usually pay higher premiums, so not having to take a medical could save you money.

What isn't covered by Over 50s life insurance?

Most policies won't pay out if you die during the initial period, usually around one to two years after taking the policy out. Insurers will usually make an exception for accidental death in this period with certain restrictions, for example most policies won't pay out if the accident was caused by you drinking alcohol or using drugs. Make sure you read the exclusions and conditions carefully before taking out a policy.

After the initial period, you will be covered no matter what your cause of death.

Is Over 50s life insurance right for you?

Because Over 50s life insurance is a whole-of-life policy, you should consider your options carefully before starting a policy. If you decide to stop paying your premiums along the way, you won't get any of your money back. For this reason you should consider taking financial advice before you proceed.

If you don't think you need whole-of-life cover, consider a term life insurance policy instead. Find out more about the different types of term life insurance by visiting the pages below:

Last updated: 24 June 2015