Over-50s life insurance is a guaranteed-acceptance, whole-of-life policy that pays out a fixed lump sum when you die. It’s often used to help cover a funeral or leave a small gift — but it works very differently from standard life cover.
Key facts
- For UK residents roughly aged 50–85; guaranteed acceptance, no medical.
- Premiums are fixed for life, often from £5–£10 a month.
- Payouts are modest and depend on age, sex and premium.
- Usually a 12–24 month waiting period for non-accidental death.
How it works
Rather than choosing a payout and being priced on your health, you choose how much to pay each month and the insurer sets the guaranteed lump sum. There are no health questions and no medical. Cover lasts for the rest of your life as long as you keep paying. Most plans have a moratorium: if you die in the first 12–24 months from natural causes, the insurer typically refunds your premiums rather than paying the full sum; after that, the full amount is paid whenever you die.
What to watch out for
- If you live a long time, you could pay in more than the policy pays out — the crossover is often around 15–20 years.
- It’s insurance, not savings; there’s usually no cash-in value, and stopping payments can mean losing cover.
- Inflation erodes a fixed payout over time.
- If you’re in good health, standard term or whole-of-life cover (which is medically underwritten) may give better value.
Is it right for you?
It can suit people who want certainty, can’t get medically-underwritten cover, or want a simple way to leave something towards a funeral. For funeral costs specifically, also compare a pre-paid funeral plan. Consider speaking to a regulated adviser to compare options.