Over 50s life insurance is commonly known as an over 50s plan. It is a non-medical policy meaning it’s not medically underwritten. So, the insurers don’t care what your medical conditions are and are happy to offer you guaranteed cover. As with any insurance, over 50s plan also has an age limit which is generally 75, but with an over 50s plan there’s no end date meaning it pays out when you pass away irrespective of when that happens. An over 50s plan is technically a whole-of-life cover meaning its guaranteed to pay out and therefore it is an expensive policy. 

Salient features

• You need to be at least 50 years old to get it which I suppose is self-explanatory.
• There’s another very important reason as to why it’s an expensive policy and that’s because it doesn’t take into consideration your pre-existing medical conditions which means acceptance is guaranteed. 
• It’s often taken out to cover the funeral expenses or any last bills. 
• You’re only required to pay till age 90 but the policy stays active for as long as you’re alive.
• These policies have a moratorium period, which can range from six months to two years, depending on the provider you choose. 
• There’s only a limited amount of cover you can get with these policies, typically capped at £10,000 with most insurers. 

There’re a few things you should bear in mind when taking out an over 50s life insurance though.

Firstly, it’s primarily meant for people with major health conditions as they can’t get cover elsewhere. This isn’t to say that a health individual can’t take it out, however, it’s not the right type of cover for someone who’s healthy. The reason being, the insurer offering this type of cover wouldn’t differentiate between two individuals based on their health as long as they’re the same age and have the smoking status. So, if you’re healthy and you take out an over 50s plan, you’ll be charged the exact same price as someone else your age who could be suffering with something serious, such as cancer.

For someone over 50 who intends to leave some money behind for their children or grandchildren as a parting gift, or simply to help cover their funeral expenses, there are several medically underwritten life insurance options available, ranging from term assurance policies that could take you all the way up to your 90th birthday to standard whole-of-life cover that could give you twice as much cover compared with an over-50s plan. 

Unlike over-50s plans, standard medically underwritten policies don’t have a moratorium period, meaning you’re covered from day one.    

If you intend to leave behind a big lump sum for your family to help them deal with any outstanding debts or bills, medically underwritten policies would be your only option as there’s no cap on how much cover you can take out.     

To summarise, it’s hassle-free to get an over-50s plan, as there’s no medical underwriting required and acceptance is guaranteed, subject to the policy’s eligibility criteria. However, there are better options available for someone who is medically fit and healthy. So, just because you’re over 50 doesn’t mean that an over-50s life insurance plan is your only option. It’s a good idea to speak to an insurance adviser to find out which option is best suited to your individual circumstances.