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What is Over 50’s Life Insurance?

Over 50’s Life Insurance is cover designed for over 50 year olds.

  • No need to answer any medical questions.
  • Guaranteed acceptance.
  • Low cost monthly premiums.
  • Cover for your remaining life.

This policy is used to provide a cash lump sum when you die, to cover funeral costs, pay unpaid bills, or leave an inheritance for loved ones or grandchildren.

We will find you the best cover.


  • Over 50’s Life Insurance
  • Is this cover right for me?
  • Getting the right cover

“Over 50” Life insurance is designed for people over the age of 50. It is a ‘whole of life’ policy. This type of life insurance coverage is often used so the payout can cover funeral expenses or provide financial support to surviving family after your death. Because the applicant is over 50, there is no set term to the coverage or a medical exam. The payout will occur at the time of death. Because it is a guaranteed payout by the insurer, an over 50 policy may be more expensive each month than a term life insurance policy. There are few restrictions with this type of policy, but some insurers may not pay out if a death occurs within the first two years of coverage. This varies from insurer to insurer and usually there are exceptions for accidental deaths.

While the over 50 policy is a guaranteed payout, if you do not pay your monthly premiums, the policy will not remain active. Conversely, if you survive until your 90th birthday and have an over-50 policy, some insurance companies will not make you pay your monthly premiums any longer and will continue to cover you free of charge. Again, this differs by company, as some require monthly premium payments on an over 50 policy for your entire life, no matter the age.

How do I know if an over 50 policy is right for me?

Perhaps you are over the age of fifty and you have not thought about life insurance yet in life, so you have no financial plans in place for your family in the event of your death. While you may qualify for a standard term life insurance policy, this application comes with a medical exam, which may be an issue for a person over the age of 50. The over 50 whole of life coverage usually does not involve a medical history or exam, assuring you to receive coverage and be able to provide for your family after your death.

If you are over 50, and a healthy, fit, active person, a regular term-life insurance policy might be right for you, but you will have to answer medical and lifestyle habits. So whilst the regular term policy is more affordable, the option of an over 50 policy is also available, though maybe costlier. As long as you are over the age of 50, but under the maximum age (differs by company, but usually around 80 years of age), you will be guaranteed for coverage. Most insurers do stipulate that a policy will not be paid out if the policyholder dies within a minimum term of over-50 coverage, unless the death is ruled accidental (12-14 months typically, depending on company). This is a protection for the insurance companies who know they will have to pay out on your policy. If a death does occur within this introductory period, some insurers will return the premiums paid within this time, up to 150% (varies by company).

Determining the right coverage for you

Before applying for life insurance, it’s important to know what your financial situation is now, as well as in the future after your death. The amount of coverage you purchase will be in direct relation to the financial needs your survivors will have after your passing. You’ll want to keep in mind how much you can afford in monthly premiums to pay for the policy, as well as expenses after your death such as funeral, living costs for your family, or monetary gifts you want to leave to your family members. Most insurers can work to find a suitable amount of coverage that will fit within your budget to afford the monthly premiums. If you fail to pay the monthly bill for coverage, your policy could be canceled by the insurer. In addition, there is no cash value to the policy, so any money you pay into your coverage, cannot be withdrawn.

It is important to note that because of the guaranteed payout on an over-50 life insurance policy, many insurance companies impose a minimum and maximum monthly premium (varies by insurer). Due to this, your over-50 policy sum assured amount may not be enough money to pay off a mortgage or provide monetary gifts for family. If there are concerns about having enough cash to pay off debts after your passing, a traditional term or whole of life policy may be more appropriate.

Common questions

  • How can I use life insurance to pay for my funeral? aaa

    There is no question that when a loved one dies, the family left behind are not only grieving emotionally over the loss, but often grieve financially because of the high cost of funeral expenses. With so much anguish over your death, having a life insurance policy in place can provide the financial means necessary for your family to properly bury you without any added financial burden to them. The sum assured that you set up as part of your life insurance will provide peace of mind to you and your loved ones knowing they have a financial gift from you to help after you are gone.

    Since you want a guaranteed payout at the time of your death, a whole of life policy is the most appropriate in this case. There are two forms of this type of coverage:

    • Over 50 Life Insurance: If you are over the age of 50, you can apply for this type of insurance which will guarantee a payout for your family, as long as the death does not occur within the first two years of owning the policy (minimum time differs by insurer).
      • The price for this type of coverage will depend on age, smoking habits, and how much coverage you desire. The older you are and the more coverage you want, the more expensive your monthly cost will be.
      • Many over 50 policies come with an additional "funeral benefit option." This allows for some add on benefits if you prearrange your funeral plans with a vendor of the insurance company's choice.
      • Benefits of this type of policy are: guaranteed payout and no medical questions thus a guaranteed acceptance. In addition, some insurance companies do not require you to pay monthly premiums past your 90th birthday. Life insurance also can be written into trust so your family does not have to worry about an inheritance tax.
      • There are advantages to an over 50 policy. They include: There usually is no payout within the first two years of coverage, unless the death is ruled accidental. In addition, over 50 policies often have restrictions on the amount of coverage you can have, thus potentially putting your family at financial risk after your death.
    • Whole of life insurance: While very similar to the over 50 policies, whole of life insurance can be applied for at any age. Unlike the over 50 coverage, there is a medical exam and questionnaire; your answers to these questions could affect your monthly premiums as whole of life is the most expensive coverage because it is a guaranteed payout. Additionally, coverage could be denied to you entirely based on your answers to this survey.
      • Whole of life policies allow for you to choose the amount of coverage up to a specified limit.
      • There are many advantages to this type of coverage including: no age requirement, few restrictions on how much coverage you can purchase, and it is a guaranteed payout to your family. In addition, there is no minimum survival term for payout.
      • Some of the drawbacks of this type of insurance include the price of the insurance, as it is the most expensive. In addition there is a medical exam, which leaves open the opportunity for increased premiums due to your health and habits, as well as the possibility that you will be denied for coverage based on those habits and health.

    How to choose between whole of life and over 50 policies will largely depend on your current budget and the needs of your family after your death. It is important to look at rates from a variety of insurance carriers, keeping in mind the need to consistently pay the monthly premiums to keep the policy active. Whatever choice you make, this type of guaranteed payout will be greatly appreciated with your family as they organize your funeral and cope with your loss.

    Term-life insurance is the most popular type of insurance, but only pays out if your death occurs within the term. In addition, term-life often has a maximum term decided by the insurance company, often your 80th birthday. This means that if you passed after that milestone, you would not be covered and your family would not receive a payout.

    Funeral costs

    While it may be unpleasant to think about the costs associated with your funeral, it is an important part of figuring out how much life insurance coverage you should choose. Costs to consider include burial or cremation fees, headstones, death certificates, flowers, and more.

  • Is there really no medical exam or questionnaire for an over 50 policy? aaa

    The over 50 policy is designed specifically with the older population in mind. Because of this and the fact that many individuals suffer medical issues later in life, there is no lifestyle or medical questionnaire as part of the application for this insurance. That's why over 50 policies are sometimes called 'guaranteed life insurance' because you are guaranteed coverage and pay out, as long as you pay the monthly premiums. Some insurers often add in a benefit for those who live over age 85 or 90 (differs by insurer) where you no longer have to pay your premium, but are guaranteed coverage.

    The disadvantage to the over 50 policy and no medical questionnaire is that it is possible for a person with a serious health condition to take out a policy. The insurance companies protect themselves in this situation with a rule that over 50 policies do not pay out in the first two years of coverage.

    Since the monthly premium you pay and assured sum stays the same throughout your life with this type of coverage, it is possible that if you live for a long time that you will pay more in premiums in your life than your assured sum payout would be. In addition, inflation could reduce the payout amount. Finally, some companies restrict the payout amount, whereas standard term insurance can offer over a certain amount of coverage.

    Currently, many people are still actively working in their fifties and may think that purchasing this type of coverage is not needed. While it is your individual decision what type of life insurance coverage you choose, an over 50s policy may be a good idea to make sure that your family is provided for after your death. Even if you have financial resources from your current work, having a policy in place can provide the needed protection at the time of your death. Whether for help with paying off a mortgage, providing living expenses, or even just to leave an inheritance to your survivors, setting yourself up with an over 50 policy can ease your mind knowing that your family is taken care of after you are gone.

  • Why should I buy life insurance if I'm over 50? aaa

    The over 50 policy is one of the most frequent advertisements you may have seen for life insurance, mostly because of the great benefits it offers (no medical questions, guaranteed payout, and possible low monthly premium). As with any financial decision, you must look at the advantages and disadvantages of purchasing this type of policy.

    Advantages

    • No medical exam or questionnaire to affect your premiums
    • Whole of life coverage: no matter when you pass away, your policy will pay out. Because of this, many people purchase an over 50 policy to provide funds to their family to pay for funeral expenses.
    • Guaranteed acceptance: As long as you are over 50 years of age, but under 85 years of age, most companies will accept you.

    Disadvantages

    • Since there is no medical exam and everyone is provided coverage, you may find that as a healthy person, your premium is still high because the company must compensate for those less healthy individuals they insure
    • Unlike a regular whole of life policy, an over 50 policy often will not pay out if the death occurs within the minimum two year introductory period of the policy (differs by insurer).
    • There is limited coverage for over 50 policies because of the guaranteed payout. Insurance companies must manage their risk to insuring you as a result of this, making them set maximum amounts on policies. In addition, some companies will limit the amount of coverage depending on your age at time of policy purchase.
    • An over 50 policy may be more expensive per month than term insurance because the amount of coverage in your policy is less than term, but unlike term, an over 50s policy is a guaranteed payout at your death.
  • Do I really get a free gift when I apply for life insurance? aaa

    coming soon

Did you know ?

Over 50’s policies are a popular type of insurance

Factoid

There are lots of ways you can make sure your Over-50s plan works for you; whether you choose cover that caps the amount you pay in or limits the number of payments you make, we'll make sure you get a policy that's right for you!