Life insurance for over 50’s – What you need to know

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July 1, 2021

People often think that getting accepted for affordable life insurance at the age of 50 and over can be difficult, but this isn’t always necessarily the case.

Anyone over the age of 18 can apply for life insurance to protect their loved ones, but there are generally specific plans in place for those taking out insurance aged 50 plus.

If you are over 50-years-old and looking for the best life insurance deal, read our guide below for advice and tips, and get a free life insurance quote from today.

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Do I really need life insurance?

Life insurance is not a legal requirement in the UK, but it all comes down to protecting your family and loved ones in the event of your death, so most people choose to get a policy for peace of mind.

People usually take out life insurance policies when they get a mortgage, get married or have children, and they are encouraged to do so to ensure that their families and dependants do not suffer financially when they pass away, as there are always expenses that need to be paid after death, such as bills, mortgage payments, funeral costs, inheritance tax (if it applies) and more.

Even if you are over 50, you may still have family that rely on you financially. For example, you may be the only one who brings a salary into your household, so your family is likely to struggle to keep on top of things if you were no longer around.

Increased risk of being affected by illnesses and health conditions

While it is a difficult thing to accept and take in, people aged 50 and over are generally at a higher risk of developing health conditions or illnesses, in comparison to a 25-year-old, for example.

Conditions and illnesses include:

  • Diabetes
  • High blood pressure
  • High cholesterol
  • Strokes
  • Heart disease
  • Cancer
  • Bronchitis
  • Parkinson’s disease
  • Kidney disease

It’s a difficult and sensitive notion to consider, but it’s true that the older you get, the more at risk your health is, and you may not even suffer with any of the above - but nothing in life is certain.

By living a healthy lifestyle, the chances of you passing away are lower. However, it is best to plan for the event of your death by taking out a life insurance policy to help your family cover expenses when you are no longer there. This will make sure your family are financially covered when you pass away and will provide you with peace of mind, knowing they won't be left in the lurch at a very upsetting time.

What is the best life insurance for over 50? - Cover options

The majority of life insurance policies are taken out to cover a certain period of time; this is known as term life insurance.

If you are over 50, you can take out this type of cover, but you may benefit more from a type of whole of life policydesigned specifically for policyholders aged over 50, which will pay out when you die as opposed to if you die during your policy time frame (term life cover).

Generally, over 50s life insurance is put in place to cover the cost of your funeral, but it can, of course, cover whatever expenses you and your loved ones feel is best (you can state your personal wishes clearly in a will).

Learn more about the different types of life insurance here.

Below are some examples of the details of a specific over 50s life insurance policy plan:

  • Guaranteed acceptance – there are no lengthy medical examinations for over 50’s cover, so it could be more beneficial for someone who has health issues. The only medical-related question you will be asked is whether or not you smoke, which is likely to increase your premiums (potentially double them).
  • Free cover – some insurance companies will offer free cover when an individual reaches a certain age, for example, 90.  At 90, you will stop paying premiums, but you’ll still be covered by your policy.
  • Fixed premiums – an advantage of these policies is that the premiums are fixed, and may start from as little as £4 a month, so you always know where you stand financially.
  • Guaranteed payout - your loved ones (the beneficiary/beneficiaries stated on your policy) will definitely receive a payout, provided you have been entirely honest during your life insurance application and subject to your policy’s terms and conditions.
  • Deferment period - If you die within the first two years of your over 50s policy, your loved ones will not receive the full payout; instead, they will get back the total amount of premiums you had paid up until the date of your death. Depending on your provider, they may even receive 50% of the total premiums paid on top of that.

What would I be covered for?

If you are over 50, having a life insurance policy means that your loved ones would be financially covered for the following in the event of your death:

  • Funeral costs – The average cost of a funeral is upwards of £4,000 in the UK (depending on your location, preferences, etc), so a payout from an over 50s life insurance policy could save your family from having to pay these costs – it’s worth considering that the maximum state grant is less than £1,000 which probably won’t cover the total cost and many people aren’t eligible to claim this amount.
  • Household bills and mortgage – If you leave a spouse behind when you pass away, the money paid out from the policy could help them to pay any household bills and keep up with the mortgage repayments, meaning that they won't have to worry about them at a difficult and upsetting time.
  • Inheritance – having a life insurance policy could allow you to leave a sum of money to members of your family as an inheritance gift or to pay any Inheritance Tax (IHT) liability you may have without taking this from your estate.

Overall, a payout from an over 50s life insurance policy is there so that your family will not struggle financially in the event of your death.

You might like: 5 essential ways to protect your loved ones

The pros and cons of over 50s cover - What to know and what to look out for

While over 50s life insurance is a great option for people aged above 50 to protect their family, it’s important to know both the advantages and potential disadvantages of this type of policy so that you’re fully aware of the terms.

Here are some benefits along with some things to consider and look out for:


Potential drawbacks

Provided you are over 50, you will be accepted for cover (regardless of existing medical conditions, etc). There is a ‘waiting period’ (or deferment period) with over 50s policies, usually lasting one or two years depending on your provider. This means your loved ones won’t receive the pre-agreed payout, but they will back the premiums you had paid up until your death (some providers may even give you 50% on top of this). After this period, the policy will pay out in full (as per your policy’s terms).
The policy will pay out no matter when you pass away (subject to the terms of your policy) Over 50s life insurance is not usually suitable for people who have a significant inheritance amount due to the payout size - be sure to check this with your advisor or provider during the application stage.
Monthly premiums are affordable and fixed If you live a long life, there’s a chance that you might end up paying more into the policy than the predetermined payout your loved ones will receive. At Bobatoo, however, our life insurance providers ensure that you stop paying at the age of 90, to prevent you from paying more than the agreed lump sum.
You get peace of mind knowing that your loved ones won't struggle financially when you pass away Bear in mind that when your loved ones receive a payout, it could potentially be worth less due to inflation.
You will not be eligible for a refund if you decide to cancel the policy.
You cannot cash in your over 50s policy.

It is also important to remember that you must keep on top of your monthly payments and don’t forget about them or miss them; otherwise, your policy will automatically be cancelled and voided, meaning your loved ones will not receive a payout in the event of your death, and you will not be entitled to receive a refund for the premiums paid up until that point.

Secure affordable life insurance today and get peace of mind forever

Here at Bobatoo, we work with the leading UK life insurance companies to ensure that every customer is given the best cover to meet their needs.

Speak to one of our trained advisors now and get a no-obligation quote to see how affordable it can be to protect your loved ones at the age of 50 and above, or take a look at our guides below for further advice and tips:

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