Compare Over 50s Life Insurance Quotes

Last updated by on April 16th, 2021

Just because you’re over 50 doesn’t mean you’re limited to buying an ‘over 50s’ life insurance policy but there are some big advantages.

No medical questions, fewer exclusions and a guaranteed payout are all reasons why a specific over 50s plan might be the wisest choice to make – here are the facts.

What is over 50s life insurance?

It’s exactly what it sounds like – life insurance specifically aimed at anyone 50 plus, up to the age of 80 or even 85 with some insurers.

Policies pay out a lump sum when you pass away which can be used to pay for funeral expenses, cover debts, or just to leave as a gift to your family and loved ones.

How does over 50s life insurance work?

As the policyholder, you choose the amount of cover you want to leave your loved ones (your beneficiaries). You’ll pay a premium each month in order to guarantee this payout in the event of your passing.

The level of cover you choose will help determine the price of your premium, so it’s a good idea to think about what you want the money to cover.

It’s also a good idea to compare policy features, for example some plans will let you lower the cover amount and reduce your premium if you suddenly aren’t able to pay your monthly premium – but this will depend on the insurer.

It’s also important to remember that there’s no cash benefit so you can’t trade your policy in for cash.

Related: Income protection insurance

What are the benefits of an over 50s life insurance plan?

As these plans are designed specifically for anyone aged 50 plus, there are several benefits that make these policies a far more attractive option than general life insurance plans, such as:

Guaranteed acceptance –

  • if you’re between the age of 50 and 80 or 85 in some cases, depending on the insurer and live in the UK you will be able to get over 50s insurance. So, if you smoke or have any health concerns this might be a good option for you.

No medical –

  • unlike with some other standard life insurance plans, you won’t need to undergo a medical or answer any health questions

Fixed premiums –

  • as a general rule, premiums remain the same throughout the life of the policy which can help you plan and budget. Depending on the type of policy, standard life insurance plans are often subject to rising premiums, they also typically cost more to take out the older you are.

Guaranteed payout –

  • when you pass away, an over 50s plan will always pay out. Standard life insurance policies don’t always guarantee a payout unless the claim meets all of its conditions.

Immediate cover –

  • most plans will cover you immediately for accidental death so your beneficiaries will receive the full amount of cover regardless of the qualification period.

Are there any disadvantages to an over 50s plan?

Most policies will have a qualification period which is the time between buying a policy and when your beneficiaries can make a claim – it’s usually one to two years.

However, if you pass away during the qualification period, your loved ones will still get some money as most insurers will pay out the value of the premiums you’ve paid.

Another thing to consider, is that you could end up paying in more than your beneficiaries receive. For example, if you take out a policy at 50 for £10,000 worth of cover and pay £20 a month, but lived until 95, you’d have paid in £10,800 which is more than the guaranteed lump sum.

Something else to think about, is inflation. The amount of cover is usually fixed and doesn’t take into account the rising cost of living, so £5,000 in 20 years’ time won’t go as far as it might today.

Is the payout from an over 50s plan taxable?

Life insurance in the UK isn’t taxed directly – your beneficiaries will only need to pay tax on the lump sum if it’s included in your estate and is subject to inheritance tax which is currently 40%.

At the moment, you only pay inheritance tax if the estate (the value of money and assets) is more than the threshold which is £325,000 – you only pay tax on the amount over the threshold.

For example, if your estate is worth £500,000 (such as your home and the value of any life insurance policies) your beneficiaries would pay 40% inheritance tax on £175,000 which works out at £70,000.

You can write your policy ‘in trust’ which means your beneficiaries won’t need to pay inheritance tax on any income received from a life insurance policy.

Can I get an over 50s policy if I have a pre-existing medical condition?

Yes – even if you have a pre-existing condition, there’ll be an over 50s plan to suit you.

There is usually no medical exam and you won’t be asked any questions about your health or lifestyle. As long as you meet the age requirements, you’re guaranteed to be accepted.

Am I still covered if I move abroad?

In most cases, even if you’re living abroad, you should still be covered as long as you remain a UK resident and were living in the UK when you first bought the policy.

Some insurers will only cover you while living in certain areas – such as within the EU. To be certain, you’d need to check the conditions set out by your insurer.

Should I think about critical illness cover?

Critical illness cover pays out a lump sum if you’re diagnosed with a specific condition during the policy term. The conditions you’re insured for, will be set out within your policy agreement.

Taking out critical illness cover can give you peace of mind – it can help cover the cost of everyday expenses if you suddenly find yourself unable to work due to a critical illness.

If you like the idea of an over 50s plan and want to see what’s available, you can start an online quote now.

Alternatively, if you’d prefer to get a quote over the phone, please call 0330 022 4687 and one of the team will be happy to help.

Who is mustard?

We are experts in insurance comparison, dedicated to helping you compare quotes online quickly and easily.

We search quotes from some of the UK’s leading insurance providers to help you find the right policy for you at a price to suit your budget.

Insurance as individual as you are