TL;DR
Navigating the world of life insurance can feel daunting, especially as we get older. You've worked hard, built a life, and now you’re thinking about the legacy you'll leave behind. A common question we hear is, "How much does over 50s life insurance cost?" You want a simple, affordable way to leave a lump sum for your loved ones – perhaps to cover funeral expenses, settle outstanding bills, or simply provide a final gift.
Key takeaways
- Guaranteed Acceptance: If you are a UK resident aged between 50 and 80 (or sometimes 85), you are guaranteed to be accepted. There are no medical exams or intrusive health questionnaires. This is a significant benefit for individuals who may have pre-existing health conditions that could make other types of life insurance expensive or unobtainable.
- Fixed Premiums: The monthly amount you agree to pay at the start will never increase. This makes it easy to budget for, giving you certainty over your outgoings.
- Fixed Payout: The lump sum your beneficiaries will receive is agreed upon at the outset and does not change.
- The Waiting Period: This is a crucial feature to understand. Most over 50s plans have a 'waiting' or 'qualifying' period, typically the first 12 or 24 months of the policy. If you pass away from natural causes during this time, the policy will not pay out the full lump sum. Instead, your beneficiaries will usually receive a refund of the premiums you have paid, often with a small amount of interest (e.g., 1.5 times the premiums paid). However, if you die as a result of an accident during this period, most policies will pay out the full sum assured. Once the waiting period is over, you are fully covered for death by any cause.
- Your Age: This is the most significant factor. The older you are when you apply, the higher your premiums will be for a given level of cover. Insurers base their calculations on life expectancy; an older applicant has fewer years, on average, in which to pay premiums.
Navigating the world of life insurance can feel daunting, especially as we get older. You've worked hard, built a life, and now you’re thinking about the legacy you'll leave behind. A common question we hear is, "How much does over 50s life insurance cost?" You want a simple, affordable way to leave a lump sum for your loved ones – perhaps to cover funeral expenses, settle outstanding bills, or simply provide a final gift.
The good news is that over 50s life insurance is designed to be straightforward. But the price you pay can vary significantly. In this definitive guide, we’ll break down the typical monthly premiums for older adults in the UK, explore the factors that determine your cost, and help you understand whether this type of cover is the right choice for your circumstances.
Typical monthly premiums explained for older adults
The core appeal of over 50s life insurance is its simplicity and predictability. You choose a monthly premium you're comfortable with, and that premium is fixed for life. In return, the policy guarantees a fixed, tax-free cash payout upon your death, provided you've had the policy for a minimum period (usually one or two years).
So, what can you expect to pay? The cost is primarily determined by two things: your age when you take out the policy and the size of the cash payout (sum assured) you want. Unlike other types of insurance, there are typically no medical questions, so your health and lifestyle do not directly influence the premium for a guaranteed acceptance plan.
Let's look at some illustrative examples of monthly premiums for non-smokers. Remember, these are just averages to give you a general idea. The actual premium will depend on the specific insurer you choose.
Example Monthly Premiums for Over 50s Life Insurance
| Age at Start | Monthly Premium | Example Payout (Sum Assured) |
|---|---|---|
| 50 | £15 | £4,250 |
| 50 | £25 | £7,100 |
| 50 | £40 | £11,400 |
| 60 | £15 | £2,900 |
| 60 | £25 | £4,850 |
| 60 | £40 | £7,800 |
| 70 | £15 | £1,700 |
| 70 | £25 | £2,850 |
| 70 | £40 | £4,600 |
| 80 | £25 | £1,650 |
| 80 | £40 | £2,700 |
Please note: These figures are for illustrative purposes only and are based on sample quotes from leading UK insurers in early 2025. The actual payout you are offered will vary between providers.
As you can see, the younger you are when you start the policy, the larger the payout you'll get for the same monthly premium. A 50-year-old paying £25 a month could secure a lump sum of over £7,000, whereas a 70-year-old paying the same amount might receive a payout closer to £2,850. This is because, statistically, the 50-year-old is likely to pay premiums for a longer period. (illustrative estimate)
What is Over 50s Life Insurance and How Does it Work?
Before we delve deeper into costs, it's essential to understand the unique features of an over 50s plan. It’s a specific type of 'whole of life' insurance policy, meaning it's designed to pay out whenever you pass away, not just within a fixed term.
Key features include:
- Guaranteed Acceptance: If you are a UK resident aged between 50 and 80 (or sometimes 85), you are guaranteed to be accepted. There are no medical exams or intrusive health questionnaires. This is a significant benefit for individuals who may have pre-existing health conditions that could make other types of life insurance expensive or unobtainable.
- Fixed Premiums: The monthly amount you agree to pay at the start will never increase. This makes it easy to budget for, giving you certainty over your outgoings.
- Fixed Payout: The lump sum your beneficiaries will receive is agreed upon at the outset and does not change.
- The Waiting Period: This is a crucial feature to understand. Most over 50s plans have a 'waiting' or 'qualifying' period, typically the first 12 or 24 months of the policy. If you pass away from natural causes during this time, the policy will not pay out the full lump sum. Instead, your beneficiaries will usually receive a refund of the premiums you have paid, often with a small amount of interest (e.g., 1.5 times the premiums paid). However, if you die as a result of an accident during this period, most policies will pay out the full sum assured. Once the waiting period is over, you are fully covered for death by any cause.
The primary purpose of these plans is to provide a modest lump sum to help your loved ones with immediate costs after you're gone. According to the SunLife Cost of Dying Report 2024, the average cost of a basic funeral in the UK is now £4,141. An over 50s plan can be a practical way to ensure this financial burden doesn't fall on your family. (illustrative estimate)
Key Factors That Influence the Cost of Over 50s Life Insurance
While the calculation is simpler than for other insurance products, several factors combine to determine your exact premium and corresponding payout.
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Your Age: This is the most significant factor. The older you are when you apply, the higher your premiums will be for a given level of cover. Insurers base their calculations on life expectancy; an older applicant has fewer years, on average, in which to pay premiums.
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The Cover Amount (Sum Assured) (illustrative): This is the lump sum you want the policy to pay out. Naturally, a larger payout requires a higher monthly premium. Most providers have a maximum payout, often capped at around £10,000 to £25,000, depending on your age.
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The Insurance Provider: Not all insurers are created equal. They use different actuarial data and have different business models, which leads to variations in the premiums they charge and the payouts they offer. This is why comparing the market is so important. A specialist broker like WeCovr can be invaluable here, as we compare plans from all the major UK insurers to find the most competitive deal for your specific age and desired cover level.
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Smoking Status: This is a nuanced factor. For traditional 'guaranteed acceptance' over 50s plans, your smoking status makes no difference to the price. However, some insurers offer 'simplified underwriting' versions where they might ask if you've smoked in the last 12 months. If you are a non-smoker, you may be able to secure a significantly higher payout for the same premium with one of these plans. It's always worth checking.
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Payment Term: Most over 50s plans require you to pay the premium for the rest of your life. However, some modern policies now include a cap. For example, you might only have to pay premiums until you reach age 90, or for a maximum of 30 years, after which your cover continues for free. These features are designed to address a key concern: the risk of paying more in premiums than the policy will pay out.
Comparing Over 50s Life Insurance with Standard Term Life Insurance
Is an over 50s plan automatically the best choice once you pass that milestone birthday? Not necessarily. For many, a standard term or whole of life insurance policy could offer better value, provided you are in reasonably good health.
The key difference is underwriting. Standard policies involve a full application process where you answer detailed questions about your health, lifestyle, and family medical history. You may even need a medical examination. This allows the insurer to accurately assess your individual risk.
Here’s a side-by-side comparison:
| Feature | Over 50s Life Insurance | Standard Term Life Insurance |
|---|---|---|
| Acceptance | Guaranteed for UK residents aged 50-80/85 | Based on medical and lifestyle underwriting |
| Medical Questions | No | Yes, detailed questions are asked |
| Cost | Can be higher for the amount of cover | Often cheaper for healthy individuals |
| Cover Amount | Typically capped (e.g., £10k - £25k) | Can be much higher (e.g., £500k+) |
| Waiting Period | Yes (usually 12-24 months for natural death) | No, full cover from day one |
| Purpose | Funeral costs, small legacy, final bills | Mortgage protection, family income, large legacy |
Who is it for?
- Over 50s Plan: Ideal for those with pre-existing health conditions who may struggle to get other cover, or for anyone seeking a simple, no-fuss way to secure a small lump sum for final expenses without a medical.
- Standard Term Plan: A better choice for healthier individuals in their 50s or 60s who need a larger amount of cover, for instance, to clear a remaining mortgage or provide for a dependent spouse. The cost per £1,000 of cover is almost always lower.
At WeCovr, we believe in finding the right policy for the person, not just selling a product. We can help you quickly assess whether a standard underwritten policy might be a viable and more cost-effective option for you.
How to Get the Best Value from Your Over 50s Policy
While these plans are simple, there are smart ways to ensure you're getting the best possible value for your money.
1. Be Aware of the "Total Premiums vs. Payout" Equation
This is the single biggest drawback of some over 50s plans. If you live for a very long time, you could end up paying more in total premiums than the guaranteed lump sum your family will receive.
- Example: You take out a policy at age 60, paying £30 a month for a £5,000 payout. If you live to age 94, you will have been paying for 34 years.
- Illustrative estimate: Total paid: £30/month x 12 months x 34 years = £12,240
- Illustrative estimate: Payout: £5,000
To avoid this, look for providers that offer a premium cap. These plans stop taking your money once you reach a certain age (e.g., 90) or once the total you've paid in equals the sum assured. Your cover then continues for free for the rest of your life. This feature provides a vital safety net.
2. Compare Quotes from Multiple Providers
As our initial table showed, the payout for the same monthly premium can differ between insurers. The only way to ensure you're getting the maximum possible sum assured for your budget is to compare the market thoroughly. Using an independent broker saves you the time and hassle of getting individual quotes, and their expertise can highlight differences in policy terms you might otherwise miss.
3. Look for Valuable Added Benefits
To stand out in a competitive market, many insurers now bundle extra benefits with their over 50s plans at no additional cost. These can add significant value and include:
- Funeral Benefit Option (illustrative): Some insurers partner with specific funeral directors. If you opt for your payout to be paid directly to them, they may add an extra contribution (e.g., £250-£300) towards the cost of the funeral.
- Wellbeing and Health Services: Access to virtual GP appointments, mental health support, or second medical opinion services.
- Legal Advice: Help with will writing or probate.
Here at WeCovr, we go a step further. We believe that supporting your health is just as important as providing financial protection. That's why we provide our customers with complimentary access to CalorieHero, our exclusive AI-powered calorie and nutrition tracking app. It’s our way of helping you invest in your long-term wellbeing, showing we care about more than just the policy.
4. Read the Small Print
Always be clear on the length of the waiting period (is it 12 or 24 months?) and the exact definition of "accidental death" that qualifies for an immediate payout. Understanding these terms upfront prevents any nasty surprises for your loved ones later.
Is Over 50s Life Insurance Worth It? A Balanced View
Like any financial product, these plans have their strengths and weaknesses. The "right" answer depends entirely on your personal and financial situation.
Pros:
- Peace of Mind: Knowing that funeral costs or other final expenses are taken care of can be a huge relief.
- Guaranteed Acceptance: It provides an accessible option for those with health issues.
- Simplicity: The application process is quick and easy, with no medicals or complex forms.
- Budget-Friendly: Fixed monthly premiums make it easy to manage your finances.
- Tax-Free Payout: The lump sum is paid out tax-free to your beneficiaries.
Cons:
- The Payout vs. Premiums Risk: As discussed, you could pay more in than you get out if you live a long life with a basic plan.
- Lower Payouts: The sum assured is much smaller than what's available with underwritten life insurance.
- The Waiting Period: The lack of cover for natural death in the first 1-2 years is a significant drawback.
- Inflation (illustrative): A £5,000 payout may seem adequate today, but its purchasing power will be eroded by inflation over 10, 20, or 30 years. What covers a funeral now might only cover a portion of it in the future.
Alternatives to Over 50s Life Insurance
If you're not convinced an over 50s plan is for you, consider these alternatives:
- Standard Life Insurance: If you're in good health, a medically underwritten term or whole of life policy will likely offer far greater value.
- Pre-paid Funeral Plan: This allows you to pay for your funeral at today's prices, either as a lump sum or in instalments. The key benefit is that it locks in the cost of the funeral director's services, directly hedging against inflation.
- Savings or Investments: You could simply set aside money in a high-interest savings account or an ISA. This gives you flexibility, but requires discipline and carries the risk that you might not have saved enough if you pass away sooner than expected.
- Family Income Benefit: Instead of a lump sum, this policy pays out a regular, tax-free income to your family for the remainder of the policy term. It's an excellent, often overlooked, option for replacing a lost income.
- Gift Inter Vivos Insurance: If your main concern is Inheritance Tax (IHT) on a large gift you've made, this specialised policy can help. It's a type of term assurance designed to pay out a decreasing sum over a 7-year period, matching the tapering IHT liability on a 'Potentially Exempt Transfer'.
Special Considerations for Business Owners and the Self-Employed
If you're a company director, freelancer, or sole trader, your financial planning needs are often more complex. While a personal over 50s plan can provide a foundation for personal costs like a funeral, you should also consider how to protect your business and income.
Products like Executive Income Protection can provide a replacement income paid via your limited company if you're unable to work due to illness or injury. Key Person Insurance pays a lump sum to the business if a crucial employee (including you) passes away or suffers a critical illness, helping the business to survive the financial impact.
These business protection policies serve a different purpose to personal cover but are a vital part of a holistic financial safety net for anyone running their own enterprise.
The Importance of a Healthy Lifestyle in Your 50s and Beyond
While over 50s plans offer guaranteed acceptance regardless of health, this guide wouldn't be complete without touching on wellbeing. Why? Because being healthier not only improves your quality of life but can also open the door to much cheaper, more comprehensive insurance options.
Even small, consistent changes can have a huge impact:
- Diet: Focus on a balanced diet rich in fruits, vegetables, lean proteins, and whole grains. Staying hydrated and moderating alcohol and processed food intake is key. We developed our CalorieHero app precisely to make tracking nutrition simple and accessible, helping our customers build healthier habits.
- Activity: The NHS recommends at least 150 minutes of moderate-intensity activity a week. This could be brisk walking, cycling, swimming, or even vigorous gardening.
- Sleep: Aim for 7-9 hours of quality sleep per night. It's crucial for physical repair, cognitive function, and emotional regulation.
- Mental Wellbeing: Stay socially connected, engage in hobbies, and practice mindfulness or meditation to manage stress.
By focusing on your health, you might find that you can easily qualify for a standard life insurance policy, even in your 50s or 60s, securing a far larger payout for your family for a similar or even lower monthly premium.
In Conclusion: Making the Right Choice for You
The cost of over 50s life insurance in the UK is not one-size-fits-all. It typically ranges from as little as £10 to £50 or more per month, dictated by your age, the provider you choose, and the size of the payout you want. (illustrative estimate)
It is a valuable product for its target audience: those seeking guaranteed acceptance to cover final expenses. However, it is not a universal solution. The potential to pay more in premiums than the final payout and the impact of inflation are serious considerations.
Before you commit, your checklist should be:
- Assess Your Needs (illustrative): Do you need to cover a £4,000 funeral or a £150,000 mortgage?
- Assess Your Health: Are you healthy enough to consider a medically underwritten policy?
- Compare the Market: Don't just accept the first quote you see. Use a broker to compare payouts, features, and premium caps.
- Read the Terms: Understand the waiting period and any value-added benefits.
Making an informed decision ensures your hard-earned money provides the maximum benefit for the people you care about most.
Can I get over 50s life insurance with a pre-existing medical condition?
What happens if I stop paying my premiums?
Is the payout from an over 50s plan tax-free?
Can I have more than one over 50s policy?
Does over 50s life insurance have a cash-in value?
How does inflation affect the payout?
Sources
- Office for National Statistics (ONS): Mortality, earnings, and household statistics.
- Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
- Association of British Insurers (ABI): Life insurance and protection market publications.
- HMRC: Tax treatment guidance for relevant protection and benefits products.
