Over 50 life insurance vs funeral plan, what’s best for you…
What is over 50 life insurance?
Over 50 life insurance, often referred to as an ‘over 50s plan’ or a ‘guaranteed over 50 plan’ is a type of policy that guarantees a cash pay out to your loved ones when you pass away.
They can use the money to help cover your funeral costs, clear unpaid debts in your name, or as a small inheritance.
Unlike traditional life insurance, acceptance is guaranteed for an over 50s plan if you’re aged 50 - 85 and you don’t have to answer any health questions.
This makes it ideal for anyone in this age group who could find it difficult or too expensive to obtain standard cover due to a pre-existing medical condition.
Why not compare over 50 life insurance quotes through Reassured?
Our award-winning service can provide you with free quotes from leading insurers to help you save money.
Watch our short video to learn more about life insurance for over 50s:
Applying for over 50 life insurance is quick and simple compared to other types of life insurance as you won’t need to answer any medical questions.
Here’s how an over 50 life insurance policy works:
Over 50 life insurance is an affordable way to set money aside for your loved ones to help them cover expenses after you’re gone.
Comparing over 50 life insurance from different insurers can help you find the right policy to suit your needs and budget.
Below we have compared the main features and benefits of the most popular over 50 life insurance policies provided by top UK insurers:
|Guaranteed acceptance age limits||50 - 85||50 - 80||50 - 80||50 - 80||50 - 85||50 - 80|
|Maximum pay out amount||£18,000||£20,000||£10,000||£10,000||£15,000||£10,000|
|Waiting period before full cover starts||12 months||24 months||12 months||12 months||24 months||12 months|
|Funeral benefit option & contribution||Yes - £250||Yes - £300||Yes - £250||Yes - £250||No||Yes - £300|
|Free welcome gift card||Yes - £100||No||Yes - £120||Yes - £100||Yes - £100||Yes - £125|
|Terminal illness cover included as standard||No||Yes|
|Age your premium payments stop||88|
(if you choose cover with PayStop)
This information in these tables has been taken from each insurer’s website and is correct as of 09/08/23
The waiting period is the first 12 or 24 months from the start of the policy during which you won’t be covered for non-accidental death.
If you pass away during the waiting period, whether from natural causes or because of an accident, the outcome varies depending on the insurer.
Here’s a comparison of what they each offer in this scenario:
|Insurer||Accidental death||Non-accidental death|
|Full pay out||100% refund of premiums paid|
|Full pay out x3|
(up to £48,000)
|150% refund of premiums paid|
|Full pay out||100% refund of premiums paid|
|Full pay out x2||150% refund of premiums paid|
|Full pay out x3||150% refund of premiums paid|
|Full pay out x2|
(up to £20,000)
|100% refund of premiums paid|
Funeral benefit option
This option allows you to choose if you’d like your pay out to go directly to a funeral provider (instead of to your beneficiaries).
Using this free benefit means there’ll be an extra contribution towards your funeral costs, usually between £250 - £300 depending on the insurer.
Welcome gift card
When looking at free welcome gifts, it’s important to note that terms and conditions will apply and vary between insurers.
Check out our over 50 life insurance free gift guide for a full list of the current offers available.
Terminal illness cover
This isn’t often included with over 50 plans. It allows you to make an early claim on your policy if you’re diagnosed with a terminal illness.
Age premium payments stop
Most insurers allow you to stop paying your monthly premiums when you reach a specified age, such as 90 or 95, but your cover will remain in place until you pass away.
The best over 50 life insurance for you will depend on your personal circumstances.
However, looking at star ratings can help you find the best options available on the market according to experts and based on previous customer experiences.
The table below shows the expert ratings provided by Fairer Finance and customer ratings from Trustpilot for each of the insurers we have compared:
|Insurer||Fairer Finance rating|
(out of 5 stars)
(out of 5 stars)
|4 stars||4.6 stars|
|4 stars||4.6 stars|
|3 stars||2.7 stars|
(no life insurance reviews available)
|3 stars||3.7 stars|
|3 stars||4.9 stars|
At Reassured, we can help you compare over 50 life insurance quotes from two highly rated and trusted insurers:
Over 50 life insurance tends to cost between £5 and £75 a month. Although some insurers have a maximum premium of £100 a month.
At Reassured, the average premium price for an over 50s plan is £29.83. This is amount based on 2,047 over 50 life insurance policies sold by Reassured between 01/02/22 and 01/02/23.
Although the exact amount you’ll pay will depend on your:
Usually, you can choose a maximum premium that’s affordable for you and this will determine how much cover you can get.
The table below shows a price comparison between SunLife and One Family over 50 life insurance. Quotes are based on a non-smoker for £4,000 of cover:
xOne Family only provide cover up to age 80, therefore we can’t display pricing for this age.
Comparing quotes is essential to help you find the right policy to meet your needs and budget.
Contact Reassured for your free, personalised over 50 plan quotes.
Some over 50 plan providers take into account your smoking status to help calculate your monthly premium.
However, it’s still possible to secure affordable cover as a smoker over 50.
The table below shows a price comparison between an over 50s plan for a smoker vs a non-smoker. Quotes are based on £4,000 of cover:
|Age||Over 50s plan price per month for a smoker||Over 50s plan price per month for a non-smoker|
xDue to the risk involved we were unable to find quotes for a smoker of this age for this amount of cover
As you can see from the table above, smoking can increase the price you pay for a policy - particularly as you get older.
Quitting smoking can help you secure a more favourable premium price. However, most providers will need you to be nicotine free (this includes nicotine replacements) for at least one year before you’ll be offered standard rates.
We have written a comprehensive article on life insurance for smokers which you may like to read for more information »
While an over 50 plan is specifically designed for people over 50, at this stage of life you may also consider other types of life insurance depending on your personal circumstances.
Alternative policy types include:
Compare whole of life insurance and term life insurance for over 50s through Reassured to find our best deal.
Is over 50 life insurance worth it?
Over 50 life insurance is worth it for many people who would like to leave a cash sum for their loved ones when they pass away and help relieve some financial worry during a difficult time.
However, to ensure that you’re making a fully informed decision about whether this policy is right for you, it’s important to consider the following points:
How are over 50 life insurance premiums calculated?
Over 50 life insurance premiums are calculated using your age and sum assured. Some insurers may also require your smoking status.
All over 50 life insurance premiums are fixed - meaning your monthly payments will never increase, no matter how long you live for.
What happens if I miss a monthly premium payment?
If you miss a monthly payment, your policy will be cancelled unless you can pay the outstanding amount within a specified time frame (usually 30 days).
If your policy is cancelled due to a missed monthly payment, you won’t receive a refund of any premiums paid.
Can I reduce my monthly premium?
Yes, with some insurers it’s possible to reduce your monthly premium amount. Doing this will also reduce the pay out amount.
Being able to reduce your monthly premium may be helpful if you’re circumstances change (such as entering retirement) which can affect your budget.
Does over 50 life insurance include terminal illness cover?
Most over 50s plans don’t include terminal illness cover as the risk to the insurer is already increased due to no medical information being provided.
However, the exception to this is One Family who offer terminal illness cover as standard with their over 50s plans.
Terminal illness cover allows you to make an early claim on your policy if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.
The pay out received can help pay for private medical treatment or help you get your financial affairs in order.
Can you get over 50 life insurance with critical illness cover?
Critical illness cover can’t be added to an over 50s plan or whole of life insurance.
Critical illness cover is typically added to a term life insurance policy, for an additional cost, to provide an extra safety net.
It will provide a lump sum pay out if you’re diagnosed with a serious illness (that’s listed within the policy).
The funds from this can help to replace lost income while you’re unable to work and/or to cover private medical fees.
What is the funeral benefit option?
Some insurers offer a funeral benefit option (also known as a funeral funding option) with their over 50s plans.
This is a free option which can be included with your policy to ensure that your cash pay out is paid directly to a funeral provider to help cover your funeral costs.
The funeral provider will also provide a discount for your funeral when the time comes, usually £250 or £300 off the final bill.
Can you take out joint over 50 life insurance?
Unfortunately, it’s not possible to take out a joint over 50 life insurance policy.
Due to no medical information being disclosed, the risk to the insurer is unknown - adding a second life to the policy increases the risk further.
However, if you’re still in good health and opt for term life insurance or whole of life insurance, you could secure a joint life insurance policy.
Reassured can take your needs into consideration and provide you with the most suitable options for your circumstances.
Can you write over 50 life insurance in trust?
Yes, it could be possible to write some over 50 life insurance policies in trust.
By writing your life insurance in trust you sign your policy over to a trustee upon your passing (similar to an executor of a Will).
This process detaches the proceeds of your life insurance policy from your estate and provides the following benefits:
At Reassured we offer a free trust writing service on the majority of the policies we arrange, where our trained staff can guide you through the process.
Can you have more than one over 50s plan?
Yes, like traditional life insurance, it’s possible to have multiple over 50s plans.
The sum assured for over 50 life insurance tends to be much smaller than term-based or whole of life insurance policies.
As a result, taking out multiple policies could allow you to secure a higher level of cover.
However, most insurers tend to have a maximum cover amount. For example, with One Family, you can take out a maximum of £20,000 as one policy or across multiple policies.
Many insurers also have a maximum premium amount (for example, with SunLife, this is £100), meaning you won’t be able to take out cover which exceeds this amount.
Therefore, if you’re looking for a higher level of cover, you may need to take out multiple policies with multiple insurers.
Can you get life insurance in your 60s, 70s and 80s?
Yes, an over 50s plan could still be a great policy option for those aged 60, 70 and beyond, as acceptance is guaranteed up until age 85.
However, ultimately, it depends on your individual circumstances; age, health, budget and what you need to cover.
We have produced three in-depth articles which delve into the different options available to those in their 60s, 70s and 80s:
At Reassured, we can help you compare life insurance for over 50 to help you find your perfect policy at the right price.
Our award-winning service can provide you with free, personalised quotes for a range of policies, saving you time and money.
We’ll also help you with the decision process, providing all the information you need to make a fully informed decision.
It’s quick and simple to get your over 50 life insurance comparison, so get in touch today to secure our best deal.
*Depending on your age, smoking status and budget
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Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
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I made the right choice and now I feel relieved that I did.glyn
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I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry