Mortgage Advisor & Director
Former Senior Protection Advisor
With many people now opting to have children later in life, and mortgages often stretching into retirement, knowing your family’s financial needs are taken care of after you pass can be a great comfort. While it’s sensible to take out life insurance as early as possible, being 50+ can increase, rather than limit your options. Standard life insurance companies may accept applicants up to age 65, but you could also consider specific over 50s life insurance.
We look at the best over 50s life insurance options, how to compare deals, and how we can help you find the most suitable policy for your needs.
Are there specific life insurance policies for over 50s?
Yes! Over 50s life insurance is a guaranteed whole-of-life insurance policy that doesn’t require a medical. Although premiums can be higher on a whole-of-life policy, you’re guaranteed to be accepted, which can be ideal for older applicants, and those with life-limiting illnesses. Premiums are fixed for the life of the policy, no matter how long you live. If you stop paying them for any reason your policy will be void, with no payout.
Typically, over 50s life insurance is open to those between 50-80 years of age, but some policy providers accept applicants as old as 85. It usually offers a lump sum payment, or ‘sum assured’ of between £10,000 and £25,000 on death, rather than an ongoing monthly benefit. However, the later in life you take out the policy, the lower the payout is likely to be, depending on the size of your premiums.
Beneficiaries often choose to use the lump sum payment for funeral costs, but some policies have a clause that guarantees a specific amount that must be used for this purpose. This type of policy might be suitable if you’re concerned that your funeral costs would be a burden to your surviving loved ones.
Types of policy available and what they cover
There types of over 50s life cover available are as follows:
Guaranteed
Guaranteed acceptance policies, or over 50s life insurance, are suitable for anyone, as they cover you regardless of any health issues you may have. This includes terminally ill applicants, so it can be the best option for those with certain illnesses.
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Guaranteed payout when you die, so long as you have passed the minimum waiting period (usually 12-24 months)
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No medical checks
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Fixed monthly premiums
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Some policies waive the waiting period if you die in an accident
Term
Term life insurance covers you for a set period of time, but won’t pay out if you die outside of that period. This is available until around age 65, so can potentially be used by over 55s, depending on their age.
The set term means that you only pay premiums during that time, but you’re also only covered if you die within this term. There are 3 options:
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Decreasing term - which is usually attached to a mortgage, and intended to cover the remainder of the debt if you die before you finish repaying it. The monthly premiums are reduced in line with the amount you owe on your mortgage.
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Level term - which pays an agreed fixed amount if you die during the set term
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Increasing term - which is where the amount paid out when die increases with inflation, so the payout is likely to be higher, the longer you survive. This can usually be taken either as a lump sum or a monthly payment (family income)
Which providers are available for over 50s?
There are many insurance providers available to those over 50, but which is best for your needs will depend on the type of life insurance cover you’re looking for.
Some insurers that offer over 50s specific policies are:
All of these providers offer guaranteed acceptance – with no medical questions asked.
How to get a quote online
Whether we’re helping to secure your mortgage, or you're simply looking to compare over 50s life insurance policies that suit your needs, our advisers can get you a quote instantly. Get started below to book a free, no-obligation chat and get your quotes today:
Connect with a guaranteed life insurance specialist
How much will your policy pay out?
Guaranteed life insurance is typically for relatively small amount of cover, with the average amount these policies pay out standing at between £1,000 and £25,000.
The exact amount your policy will pay out will depend on your exact age, whether you have any existing health conditions and the overall level of risk the insurer is taking on by offering you cover.
Things to consider
When you speak to our knowledgeable team, we’ll take you through the things you’ll need to consider when taking out life insurance. Insurance is never a one-size-fits-all product, so it’s important to be confident that you’re getting a policy that’s specific to your needs.
For example, you might want to consider whether:
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The policy covers you if your death is linked to drug or alcohol abuse, as many won’t even guaranteed policies that don’t need a medical assessment.
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The lump sum received by your beneficiaries is fixed or increases in line with inflation. Keep in mind that if you live a further 30 years from the policy start date, the value could be substantially reduced.
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That you might end up paying in more than you get out. If you opt for an over 50s insurance policy your premiums are fixed for life - so if your payout is around £10,000, you’ll likely have paid more than this in around 20 years.
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The length of the waiting period, especially if you’re terminally ill. Most insurance policies won’t payout in the first 1-2 years after the policy begins.
Why over 50s choose Teito for their life insurance needs
We help people of all ages with their life insurance needs, so if you’re over 50 and looking for the most suitable policy, we can help you review every option. No matter your circumstances, we can ensure you consider all elements of the policy before you commit.
At Teito we work with a range of insurance providers, including many who offer over 50s policies. We’re keen to help you protect your home and your loved ones, so reach out now for a free, no-obligation conversation about your life insurance needs.
FAQs
Over 50s (or guaranteed) life insurance is typically offered to people between the ages of 50 and 80. However, it’s worth considering that at 60, some providers will still consider you for standard life insurance. Although premiums are likely to be higher in your 60s, standard policies can pay out more and may suit the needs of some people better.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.