Over 50s Life Insurance UK: Is It Worth It? Pros, Cons and Key Considerations

Over 50s life insurance is a type of guaranteed life cover aimed at people aged between 50 and 85. These policies are widely advertised in the UK — often with the appeal of “no medical questions” and “guaranteed acceptance”. But are they actually good value for money?

This guide explores the pros and cons of over 50s life insurance, what it really covers, how it compares to other types of life cover, and whether it’s the best choice for your personal situation.

We’ll also look at alternative options and highlight a few overlooked tips that could help you save money or secure better cover — especially if you’re still in relatively good health.

What Is Over 50s Life Insurance?

Over 50s life insurance is a type of whole of life cover designed specifically for UK residents aged 50 to 85. The main selling point is guaranteed acceptance — no medical checks, health questions, or risk assessments are required.

Key features:

• Guaranteed payout when you die (after a qualifying period)

• Fixed premiums, often paid for life or until a certain age (e.g. 90)

• Lump sum paid to your beneficiaries

• Typically used to help cover funeral costs, debts or provide a small inheritance

Read our guide on: Whole of Life Insurance Explained

What Does Over 50s Life Insurance Cover?

Over 50s life insurance usually covers:

• Death from natural causes, after an initial waiting period (usually 12–24 months)

• Accidental death, often from day one of the policy

• A guaranteed cash payout, provided all premiums are paid

Some policies include additional benefits:

• Funeral benefit option (direct payment to a funeral provider)

• Terminal illness benefit (early payout if diagnosed with a terminal condition)

• Optional inflation-linked cover (to maintain payout value)

The Main Advantages of Over 50s Life Insurance

Over 50s plans offer simplicity and accessibility. Here's why they appeal to many people:

1. Guaranteed Acceptance

• No health or lifestyle questions

• Ideal for people with medical conditions

• Quick and easy to set up

2. Lifetime Cover

• Policy lasts until you die — not just a fixed term

• Provides peace of mind that your family will receive something

3. Fixed Premiums

• Monthly cost agreed at the outset and doesn't change

• Easier to budget for, especially in retirement

4. No Medical Exams

• A straightforward application with no physical checks

• No need to disclose smoking status, weight, or health conditions

5. Pays Out a Lump Sum

• Useful for funeral expenses, small debts, or a modest gift to loved ones

• Some policies pay funeral providers directly

The Downsides of Over 50s Life Insurance

Despite the simplicity, there are several important drawbacks that are often overlooked:

1. Payouts Are Relatively Small

• Typical payouts range from £1,000 to £10,000

• Not suitable if you want to leave a substantial inheritance or cover a mortgage

2. You May Pay In More Than You Get Out

• If you live a long time, you could pay more in premiums than your family receives

• For example, £15/month for 30 years = £5,400 total premiums vs. £3,000 payout

3. Waiting Period Applies

• If you die from natural causes within the first 12–24 months, no payout is made

• Your premiums are usually refunded, but your loved ones won’t receive the full lump sum

4. Premiums Must Be Paid for Life

• Missed payments can result in your policy being cancelled with no refund

• Some insurers allow you to stop paying at a certain age — but check the terms carefully

5. Lack of Flexibility

• Fixed payout can lose value over time due to inflation

• Adjusting cover or switching later can be expensive or impossible

Unique Insight: Could a Regular Whole of Life Policy Be Better Value?

If you're healthy and in your early 50s or 60s, you might get better value and a higher payout from a standard whole of life policy that requires a medical or health questionnaire. While premiums may be slightly higher, the payout could be significantly more — and you won’t be penalised for living longer.

Real-World Example

Scenario 1: Good Value

David, 68, is in poor health and unlikely to qualify for standard life insurance. He takes out a £4,000 over 50s plan to cover funeral costs. He dies three years later, having paid just £720 in premiums. The policy pays out in full. In this case, the plan offers clear value.

Scenario 2: Poor Value

Susan, 55, pays £20/month for an over 50s policy. She lives until 90. She pays £8,400 over 35 years for a £3,000 payout. Her family would have been better off if she’d saved the money herself or chosen a different policy type.

Alternatives to Over 50s Life Insurance

If you're still in good health and want to leave more than just funeral cover, consider these alternatives:

1. Standard Whole of Life Insurance

• Requires medical underwriting

• Higher potential payout

• Better long-term value if you qualify

2. Term Life Insurance

• Covers you for a fixed number of years

• Ideal if you only need protection for a mortgage or dependants

• Cheaper and more flexible in many cases[Link: Level Term Life Insurance – Explained]

3. Prepaid Funeral Plans

• Pay upfront for funeral services

• Can lock in today’s prices and relieve your family of planning stress

• No medical questions, but funds can’t be used for anything else[Link: Life Insurance vs Funeral Plans – What’s Right for You?]

4. Savings Account or Funeral ISA

• Save regularly in a separate account

• Flexible and accessible

• But may be spent if not earmarked properly

How to Choose the Right Over 50s Life Insurance

1. Work out how much cover you need

   • Funeral costs, small debts, or a modest gift

     
     

2. Compare quotes from multiple providers

   • Look for fixed premiums and no hidden fees

     
     

3. Check the waiting period and policy terms

   • Understand when cover begins and what’s excluded

     
     

4. Decide if a funeral benefit option is right for you

   • Direct payments to funeral directors can simplify arrangements

     
     

5. Consider writing the policy in trust

   • Speeds up the payout and may avoid inheritance tax

   • More info: GOV.UK – Inheritance Tax

You can verify if your provider is regulated by checking the FCA Register.

FAQs: Over 50s Life Insurance UK

Q: Can I get over 50s life insurance with no medical?

Yes, that’s the main selling point. Acceptance is guaranteed with no medical questions asked.

Q: What’s the waiting period on these policies?

Usually 12–24 months. If you die from natural causes within this period, the payout is not made (but premiums may be refunded).

Q: What happens if I stop paying?

Your policy may lapse, and your cover will end with no refund. Some plans stop collecting premiums after age 90 — check your terms.

Q: How much cover can I get?

Payouts typically range from £1,000 to £10,000. This varies by provider and your age at the time of application.

Q: Is it worth it if I’m healthy?

Not always. If you're in good health, standard whole of life or term cover may provide better value.

Q: Can I hold more than one policy?

Yes, but you’ll need to ensure premiums are affordable long term. Some providers set limits on maximum cover.

Final Thoughts: Is Over 50s Life Insurance Worth It?

Over 50s life insurance can be a good option if you’re in poor health or struggle to get accepted for standard cover — particularly if you just want to ensure your funeral is paid for. It’s simple, accessible, and guaranteed.

However, for healthy individuals in their 50s or early 60s, it may not be the best value. Always compare other options like whole of life, term insurance, or savings-based alternatives before committing.

Before buying, ask yourself:

• Do I really need life cover, or could a savings plan work better?

• Am I eligible for a standard policy with better benefits?

• Can I afford the premiums for life?

• Will the payout be enough for what I want to leave behind?

As with all financial products, take your time, compare options, and ensure the policy fits your goals — not just the advertising slogans.

Disclaimer:  Smart With Money may receive compensation through affiliate links, sponsored content, or advertising featured on this site. This does not influence our editorial standards. All reviews and recommendations are based on independent research, and we aim to provide accurate, objective information to help you make informed financial decisions.

Please note:  All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.