Is over 50s life insurance worth it? 

As you approach retirement age, ensuring you and your family have adequate financial security becomes increasingly important. And, one option that is often considered when making plans for later life is over 50s life insurance.  

But is over 50s life insurance worth it?  

In this article, we will explore what over 50s life insurance is, what it includes and excludes, its costs, and whether it might be the right choice for you. 

Continue reading or click on the links below to jump to a relevant section: 

• What is over 50s life insurance?  
• What is included in over 50s life insurance?
• What isn’t included?  
• How much does over 50s life insurance cost?  
• Is over 50s life insurance worth it?  
• Where can I buy a policy? 

What is over 50s life insurance? 

Over 50s life insurance is a type of life insurance policy designed specifically for people aged 50 and over to provide financial security to their loved ones when they pass away or receive a terminal diagnosis.  

This type of policy usually offers guaranteed acceptance, meaning you won’t need to undergo any medical exams or answer health-related questions.  

The coverage, when claimed, will provide a cash lump sum to your beneficiaries when you pass away, which can be used to cover funeral costs, pay off debts or provide an inheritance. 

Some policies can also be claimed when a terminal diagnosis is received. 

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See also: How much is life insurance for over 50s?

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What is included in over 50s life insurance? 

There are many providers offering over 50s life insurance policies and, since these policies are offered by different insurers, what they cover can vary.  

However, while no two policies are the same, there are some features that are typically included in this type of coverage. For example: 

• Guaranteed acceptance: Provided you meet the age criteria; you will be accepted without any medical checks or answering any medical questions. However, if you do opt out of any medical questions cover may be restricted. On the other hand, choosing to answer some medical questions could reduce your premiums.

• Fixed premiums: Premiums are usually fixed, meaning they won’t increase as you get older or if your health declines. 

• Cash lump sum: When the time comes, a predetermined lump sum will be paid out into your chosen beneficiaries’ accounts. 

• Accidental death benefit: Many policies also offer a higher payout if death occurs due to an accident within the first few years of the policy. However, to prevent insurance fraud, there will typically be a cooling-off period before this type of payout can be claimed. 

What isn’t included? 

While over 50s life insurance has several benefits, it also has some exclusions and limitations to consider: 

• Waiting period: Most policies have a waiting period (often 1-2 years) during which the full benefit is not payable if death occurs from natural causes. Instead, premiums paid may be refunded. 

• Fixed sum assured: The payout your beneficiaries receive is fixed and doesn’t increase with inflation, which could reduce its value over time. 

• Lower payouts: Compared to other life insurance types, the payout from over 50s policies might be lower, and may not provide enough coverage for extensive financial needs. This is due to the increased perceived risk to the insurance company. 

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See also: Can I get life insurance with pre-existing medical conditions?

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How much does over 50s life insurance cost? 

As we previously mentioned, every policy is different, so the premiums you’ll pay will differ from policy to policy. Not only that, the cost of over 50s life insurance also varies depending on a variety of personal factors, including: 

• Age: The younger you are when you take out the policy, the lower your premiums will generally be. 

• Coverage amount: Higher payouts will require higher premiums. 

• Policy features: Additional features like accidental death benefits or index-linked policies can increase the cost of your monthly premiums. 

And, while the cost of a policy can vary, to give you an idea of how much you could expect to pay, a policy from Save More Money starts from just £20 per month (Save More Money, 2024). 

Is over 50s life insurance worth it? 

Whether over 50s life insurance is considered worth it will largely depend on your individual circumstances. So, we can’t tell you whether purchasing a policy is the right decision for you.  

However, to help you make your decision, here are some things to consider: 

• Health concerns: If you have health issues that might prevent you from qualifying for other types of life insurance, over 50s policies could be a viable option that will offer you guaranteed coverage. 

• Financial goals: If you want a simple way to help your family cover funeral costs or leave them with a small inheritance, this type of insurance can be beneficial. 

• Cost vs. benefit: Consider the total amount you’ll pay in premiums over the years compared to the payout your beneficiaries will receive. In some cases, other savings or investment options might offer a better value. 

Where can I buy a policy? 

You’ll be glad to know that finding and purchasing an over 50s life insurance policy is a simple process as there are a range of providers operating online.  

However, before purchasing a policy, it’s advisable to read the terms and conditions of each policy carefully so that you can weigh up which is the correct option for your lifestyle. 

After all, as we mentioned earlier in this article, not every policy offers the same features, and the cost of coverage can vary significantly. So, making sure you do your research is essential to purchasing the right policy.  

And, if you’re unsure where to start, why don’t you consider a Save More Money Over 50s Life Insurance policy from just £20 per month?