Over 50s Life Insurance

How It Works

You apply, usually online or by phone, giving little more than your age and whether you smoke. There are no health questions. You choose a monthly premium, often from around £5 a month, and that sets your fixed cash sum. The plan then covers you for the rest of your life and pays out whenever you die, as long as you keep paying.

Premiums are fixed, so they never rise with age. The payout is fixed too, which makes it easy to budget. With most plans, the cover continues even if premiums stop at a set age, such as 90.

What It Is For

Over 50s cover is built for later life, when the mortgage is often paid off and the children have grown up. People use it to:

• Help with funeral costs. A basic funeral now averages over £4,400, and the total cost of dying, including the send off, averages over £10,400.1
• Leave a small gift. A tax free cash sum for children or grandchildren, perhaps towards a house deposit or simply as a final gift.
• Get cover despite health issues. Because there are no medical questions, it is open to people who might struggle to get standard cover.

Things To Know First

Guaranteed acceptance is reassuring, but there are real trade offs. It is fair to weigh these up before you buy.

• There is a waiting period. For roughly the first 1 to 2 years, if you die of natural causes the plan usually pays back your premiums rather than the full sum. Accidental death is normally covered from the start.
• Payouts are modest. Cover is typically between £1,000 and £25,000, which may not cover the whole cost of a funeral.
• You can pay in more than you get back. Because it pays out whenever you die, living a long time can mean your total premiums add up to more than the payout. The chart below shows how.
• There is no cash in value. If you stop paying, the cover usually ends and you get nothing back, so choose a premium you can keep up.

Over 50s Or Standard Cover

Guaranteed acceptance is the selling point, but it comes at a price. For many people under 70 in reasonable health, a standard policy that asks health questions will pay out much more for the same monthly cost.

• Over 50s cover suits you if you have health conditions that make standard cover hard or costly to get, or if you simply want the certainty of guaranteed acceptance for a small funeral fund.
• Standard cover may suit you better if you are in reasonable health, because you are likely to get far more cover per pound, with a full payout from the start.

What It Costs

You choose your premium, often from around £5 up to £100 a month, and that sets your fixed payout. Smokers usually pay more for the same cover. Prices for the same plan can differ by around 20% to 30% between providers, so it is well worth comparing before you commit.3

Worked Example

This is a simple illustration, not a quote or a promise of cover.

Margaret, aged 65, pays £20 a month for a £5,000 plan to help with her funeral. If she dies at 78, she will have paid about £3,120 in premiums for the £5,000 payout. If she lives to 92, she will have paid about £6,480, which is more than the payout. Many plans stop taking premiums at a set age, such as 90, which limits this. Margaret writes the plan in trust, so the money reaches her family quickly to help with the funeral.

Why Use Surely

Over 50s plans look alike, but the terms and the value differ, and standard cover is often worth a look too. Surely helps you see clearly.

We explain the plans in plain English, set out the trade offs honestly, and help you compare from selected UK insurers, including standard cover where it may suit you better. We compile and cross check real UK pricing and plan terms.

Surely helps you compare and get quotes online, and does not give advice itself. Where advice is appropriate, a qualified protection adviser from our panel may contact you.

Frequently Asked Questions

Can I be turned down?

No. Acceptance is guaranteed for UK residents within the age range, with no health questions. The only reason you would not qualify is being outside the eligible ages.

Is there a wait before it pays out?

Usually. For roughly the first 1 to 2 years, a death from natural causes typically pays back your premiums rather than the full sum. Accidental death is normally covered from the start.

How much does it pay out?

A fixed amount that you set through your premium, usually between £1,000 and £25,000. It is designed for funeral costs or a small gift rather than large family protection.

Could I pay in more than the payout?

Yes, if you live a long time. Because it pays out whenever you die, total premiums can add up to more than the fixed sum. Check the figures, and whether premiums stop at a set age.

Is it better than standard life insurance?

Not always. If you are in reasonable health, standard underwritten cover usually gives far more for your money. Over 50s cover is best when you want guaranteed acceptance or have health issues that make standard cover difficult.

Is the payout taxed?

It is normally paid tax free. It can count towards inheritance tax, charged at 40% above £325,000, unless the plan is written in trust. Tax treatment depends on your circumstances and can change.4

This guide deals with death and funerals. For impartial money guidance you can use MoneyHelper, the government backed service.

Getting Started

Decide what you want the money for, usually a funeral or a small gift. If you are in good health, compare standard cover too, since it may give more for your money. Choose a premium you are confident you can keep up for the long term, write the plan in trust so the money reaches your family quickly, and compare a few providers, because prices vary.

Cover, price and eligibility depend on your personal circumstances and the plan terms. Over 50s cover is whole of life: it pays out whenever you die, subject to the waiting period and continued premiums, and total premiums may exceed the payout. Surely helps you compare insurance and does not provide regulated financial advice.