Is Over-50s life insurance right for me?

“I recently started looking into life insurance, and came across several ‘Over-50s’ plans online. I’m in my 60s and have a few medical conditions, so is this a good option for me? I just want to make sure my funeral is covered, and maybe leave something behind for my grandchildren.”

Lawrence, Manchester

Thanks for your question, Lawrence. I've gone over some basics about Over-50s life insurance plans below, and included some links to further information.

The cost of a typical life insurance policy (i.e. with a fixed term and a high payout) rises sharply as we get older, making it difficult to find affordable cover.

However, at your age you should be eligible for an Over-50s insurance plan. Many of these products come with guaranteed acceptance, which means you won't be turned down even with a medical condition.

Some restrictions apply, of course: you usually have to be within a certain age bracket to qualify (this varies by insurer), and a permanent UK resident. You will also need to commit to paying premiums for the rest of your life, or until a certain age. As with any insurance product, there will be risks to consider. These include losing your cover if you stop paying, and not being covered for the first 12-24 months (although some insurers will cover accidental death in this initial period).

You may find the payout for this type of policy is low compared to life insurance plans you had when you were younger. Over-50s insurance plans are generally designed to leave money towards funerals, a little inheritance, or to cover unpaid bills. You may also find the premiums expensive compared to typical term-based insurance.

On the plus side, an Over-50s insurance plan is usually guaranteed to pay out whenever you pass away - you won't simply outlive the plan. Many insurers aim to pay claims to your loved ones within days of the required documents being received, although timescales can vary depending on the circumstances and provider.

You will be able to find various Over-50s insurance plan providers online, and Which? provide some information you might find useful here. Products, terms, and promotional offers will vary, so it’s important to consider your options carefully. I can’t provide you with specific advice, so you should talk to your family and seek independent financial advice if you need it.

A guaranteed payout might sound tempting, but remember that the sum isn't necessarily guaranteed to cover your funeral (or the inheritance you want for your grandchildren). If you want guaranteed cover for the cost of funeral services, you could consider looking at FCA-regulated funeral plans too – although these don’t necessarily cover additional or optional costs, and aren’t suitable for everyone. You can find out more about paying for your funeral here.

Whatever you decide, it's great that you're starting to plan ahead. Take your time to make the right decision for yourself and your family, and get in touch if you have any more questions.

The information in this article is for educational purposes only and should not be taken as legal or financial advice. Details are accurate at the time of publishing, and no liability is accepted for any inaccuracies or future changes. Always seek independent advice before making financial, legal or medical decisions.