Best Over 50s Life Insurance

Thinking about what will happen when we die isn’t easy. Although we cannot control the inevitable, something that we can do is put plans in place to reduce the financial strain that our death may cause in the form of life insurance.

Over 50s life insurance is an incredibly popular form of life insurance, as it offers a guaranteed payout with no medical required. As well as paying for any funeral expenses, over 50s life insurance can also be used to leave a lump sum to your loved ones. 

As part of our finance and pensions advice that we regularly offer up here at Retirement Expert, here is everything you need to know about over 50s life insurance, along with our top tips on finding the best policy for your needs. 

What Is Life Insurance?

Life insurance is an insurance policy that pays out when the policyholder dies. There are several types of life insurance, including term life insurance aimed at those with mortgages or families, should one member of the household die. In which case, the mortgage would be paid off, and the remaining spouse would receive a large lump sum. 

Another type of life insurance is over 50s life insurance which is also known as whole of life insurance, and this offers a guaranteed payout when you die. This insurance type is geared towards ensuring any funeral expenses will be covered, and will also leave a small lump sum to your family. It can also help to avoid some inheritance taxes. 

A good point to note is that if you’re over 50 with a clean bill of health and are looking to leave a larger sum of money, then level-term insurance may be better suited to your needs instead. 

How Does Life Insurance Work?

Every life insurance type works slightly differently, but with over 50s life insurance, you will usually pay set premiums that will give your loved ones a guaranteed cash payout when you die. 

Although, after reaching a certain age, most insurers will allow you to stop paying your premiums, especially if you have paid continuously over many years or decades. This also ties in with the fact that you could get less out than you put in, especially if you begin your over 50s life insurance as soon as you qualify but are still paying it in your 80s as an example. 

However, if you stop paying the premiums for any reason other than the insurer allowing you to do so, then the cover will not pay out. So, you must view life insurance as a long-term commitment, ensuring you will be able to keep up with your monthly premiums. 

To get a quote for life insurance, you’ll need to state whether you are a smoker but no other medical questions will be asked. You can choose the lump sum you’d like your loved ones to receive when you die, and you’ll be given a list of quotes to compare. 

Select the quote which meets your needs in terms of financial commitment and payout. You’ll then need to arrange for the continual monthly payment of your policy, which is usually through direct debit. 

See Also: Health Insurance In Retirement

How Much Will My Life Insurance Pay Out?

Over 50s life insurance policies pay out anywhere from £1,800 to £18,000 on average. The total amount paid will depend on when you took out your policy and your monthly premiums. 

Typically, the earlier you start to pay the higher the payout will be, although you may end up putting in far more than you will get out if you do start paying early. So, there’s certainly a tradeoff that needs to be explored before you sign on the dotted line. 

Best Over 50s Life Insurance Providers UK

We’ve scoured the land to find some of the best and most popular providers of life insurance for the over 50s in the UK. Here are our top picks. 

Legal & General

For those who are overwhelmed by the number of life insurers to choose from, Legal & General offer peace of mind. Having been established 180 years ago, they hold a Defaqto 5-star rating.

The premiums on a Legal & General plan are fixed, so owing to inflation, it may be wise to pay more than the lowest possible amount of £5 per month to ensure a decent payout. However, it’s great to have the option of paying such a nominal amount and still receive a guaranteed payout. 

It’s also possible to take out more than one over 50s life insurance plan with Legal & General, so long the total amount of your plans does not exceed £10,000. Also, if you die within the first year due to an accident, any premiums you have paid will be refunded, and full cover will still be paid. 

Monthly premium cost: £5 – £75

Length of time until eligible for full payout: 12 months (immediate cover for accidental death)

Age you can stop paying: 90

Extras?: Will give you a £110 voucher on signing up. Offers wellbeing support.

Visit Legal & General Over 50’s Life Insurance

British Seniors

We’ve previously reviewed British Seniors over 50s life insurance, and as the name suggests the company specialises purely in life insurance for the retired and elderly. So, this may appeal to those who want more of a dedicated focus and understanding with their insurance compared with generalised providers.

With British Seniors, cover starts at just £4.32 per month, which is one of the lowest premium options available across all insurers. The policy will pay out anytime after 12 months from the date when you commence your policy, and offers an immediate payout for accidental deaths up to 2x the value of your policy.

There are some great extras thrown in too, including a £300 funeral benefit option and a £100 gift card. However, the ‘extra’ of being able to stop paying your premiums on the policy anniversary following your 95th birthday isn’t going to be attainable for all, so you probably shouldn’t factor this in your decision as to whether the policy is right for your needs. 

Monthly premium cost: From £4.32

Length of time until eligible for full payout: 12 months (immediate cover for accidental death)

Age you can stop paying: On the policy anniversary once you reach 95

Extras?: £300 funeral benefit option. £100 gift card. Up to £20,000 of cover for accidental death.

Visit British Seniors Over 50s Life Insurance

OneFamily

OneFamily isn’t as well known as some of the other common life insurance providers, but they do also hold Defaqto 5-star status, and they were the winner of the What Mortgage Awards for 2021.

There are quite a few notable extras with the OneFamily plan, including a £300 contribution towards your funeral plan, terminal illness cover and a 3x assured payout for accidental death within the first two years, up to a maximum of £48,000. They also have an option to pay £5,000 to a nominee upon the policyholder’s death for a quick release of funds. 

The maximum sum assured is £20,000 which is quite generous for an over 50’s life insurance plan, although this is subject to smoker status. 

Monthly premium cost: £10 – £75 per month

Length of time until eligible for full payout: 24 months

Age you can stop paying: 90

Extras?: Terminal illness covered as standard. £300 Golden Charter contribution towards the cost of your funeral (excludes direct cremation). You can request for your payments to be reduced. Emotional support is provided to help deal with serious illness, bereavement or disability. 

Visit OneFamily Over 50s Life Insurance

Post Office

Post Office over 50 life insurance is one of the few providers of life insurance that have physical branches dotted across the UK, which could offer reassurance to those who aren’t tech-savvy or simply prefer to speak to someone in person about their insurance or financial matters. 

As with OneFamily, the Post Office will also give you money towards your funeral, at a slightly lower amount of £250, which is applied as a discount with Co-op funeral care. For essential funerals (basic package) or direct cremation, the discount still applies but is lower at between £50 to £100. 

The maximum amount of cover given is £10,000 if you start paying between the ages of 50-69. The amount reduces to £9,000 for those aged between 70-74, and £6,000 for those aged between 75-80. Although, for those aged between 75-80, the final payout would still cover the cost of a funeral based on the average costs at the time of writing, bearing in mind the policy will only payout after 12 months of paying your premiums.

There are some fantastic additional extras with the Post Office over 50’s life insurance plan, including immediate cover for accidental death and the ability to choose level or increasing cover, which can help you manage your payments over the longer term. 

Also, the policy comes with a protected benefit, meaning if you stop paying your monthly premiums, so long as you are at least halfway through the agreed term, at least half of your cover will still be paid out. 

Monthly premium cost: Starts at £5 per month

Length of time until eligible for full payout: 12 months 

Age you can stop paying: When you reach at least halfway through your agreed term. 

Extras?: Up to £250 towards the cost of your funeral, protected benefit. The first month is free.

Visit Post Office Over 50s Life Insurance 

Sainsbury’s Bank

Sainsbury’s Bank offers yet another familiar high street face into the mix and is also backed by a Defaqto 5-star rating.

Interestingly, this Sainsburys over 50s life insurance type is provided by Legal & General, meaning many of the same elements and restrictions also apply. Although, if you do purchase your policy through Sainsbury’s Bank, you’ll receive £100 worth of Nectar points. 

However, Sainsbury’s Bank does offer an inflation-linked option, making them the only provider on our list to do so. In general, this is exceptionally rare, so it’s something to consider if you are concerned about the value of your payout in years to come more than any other factor. 

Monthly premium cost: Start from £5 per month

Length of time until eligible for full payout: 12 months

Age you can stop paying: 90

Extras?: £100 worth of Nectar points, plus all of the extras provided by the Legal & General plan.

Visit Sainsbury’s Bank Over 50s Life Insurance

SunLife 

Saving the most seen on TV until last, SunLife’s over 50s life insurance actually starts at age 49. The plan is backed by Feefo, who awarded it a ‘Platinum Trusted Service Award’, along with having glowing reviews on Trustpilot. SunLife is also an official affiliate with the British Heart Foundation.

One main difference with the SunLife plan is that there is no age at which you can stop paying into the plan. Instead, you must continue to pay until your death. So, for anyone looking to start the plan at the earliest age of 49 who then goes on to live a very long life, your premiums could be far less than what you have paid in, depending on your monthly premium. However, there is a ‘PayStop’ option hidden in the smallprint to cap premiums after a certain length of time which is definitely worth considering. 

Across all SunLife insurance plans, the maximum combined payout is £18,000. Extras also include a £250 contribution towards your funeral, and a £100 gift card. Immediate cover is also given for accidental death, and your monthly payments will never rise. 

Monthly premium cost: £3.70 to £74

Length of time until eligible for full payout: 12 months

Age you can stop paying: N/A 

Extras?: 

Visit SunLife Over 50s Life Insurance 

Over 50s Life Insurance Pros

• It will offer a guaranteed payout so long as you keep up with premiums
• Most plans offer a guaranteed acceptance
• It doesn’t matter if you have any existing health conditions
• If the payout is purely to leave a gift, loved ones can spend the full amount as they wish
• Premiums start from around £7 per month
• Insurers may tell you that you no longer need to pay when you reach a certain age

Over 50s Life Insurance Considerations 

• Your policy could pay out less than what you paid in
• Over 50’s life insurance policies typically have a lower payout 
• There is usually a 12-36 period following the commencement of your policy where any claims will be ineligible – if you die within this time your policy will not be paid out
• Inflation could reduce the value of the final payout 
• You cannot miss a payment

Top tip: Beware of being swayed into taking out an insurance policy purely to receive a free gift. Although it may seem nice to receive something for free, you will be paying thousands into your premium over your lifetime. So, it is important to only base your decision on the policy that will best fit your needs, rather than be tempted by a carriage clock or vouchers. 

Over 50s Life Insurance: In Summary

Over 50s life insurance is designed to pay out a modest lump sum when you die, primarily to cover any funeral costs with the rest of the money going to your loved ones. This insurance type doesn’t offer as large of a payout as other life insurance types, but its wide acceptance and guaranteed payout makes it extremely popular.

Keen to learn more? Retirement Expert offers free specialist advice on all areas of senior living including finance, keeping healthy, home life, leisure, personal safety and much more. Be sure to bookmark our website and leave us a comment on any topics you’d like us to cover in the future, and share this article with anyone who is in search of life insurance.