Over-50s Life Insurance: How It Works and the Catches
Over-50s life insurance is the 'guaranteed acceptance' cover heavily advertised on daytime TV. You can't be turned down and there's no medical, and it pays a fixed lump sum when you die, often used to help with funeral costs or leave a little something behind. It can suit people who can't get standard cover, but it comes with real catches, including the possibility of paying in more than your family gets back. This guide explains how it works and what to watch for, as general information, not advice.
- ✓It's guaranteed acceptance with no medical, typically for ages 50 to 80, so it's useful if you can't get standard life insurance.
- ✓It pays a fixed lump sum on death, often modest, and is commonly used towards funeral costs.
- ✓There's usually a 1 to 2 year waiting period: die of natural causes within it and your family only gets the premiums back (accidental death is covered from day one).
- ✓The big catch: if you live a long time you can pay in more than the policy ever pays out.
- ✓Compare it with a standard life policy, a prepaid funeral plan, or simply saving, it isn't always the best value.
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How over-50s plans work
- ✓Anyone in the age range (usually 50 to 80) is accepted, with no health questions or medical
- ✓You pay a fixed monthly premium, and the plan pays a fixed lump sum when you die
- ✓Premiums are usually payable until you die or reach a set age (often 90), after which cover continues with nothing more to pay
- ✓The payout is a set cash amount, it doesn't usually rise with inflation, so its real value falls over time
The waiting period
Almost all over-50s plans have a 1 to 2 year waiting period. If you die of natural causes during that time, your family doesn't get the lump sum, they usually just get back the premiums you've paid (sometimes with a little extra). Death by accident is normally covered from day one. After the waiting period, the full amount is paid whenever you die.
The big catches
- ✓If you stop paying, you usually lose the cover and get nothing back, so it must stay affordable for the long term
- ✓The fixed payout loses value to inflation, what covers a funeral today may not in 20 years
- ✓It often gives less cover per pound than a standard life policy if you're in reasonable health
Is there a better option for you?
Over-50s cover suits people who can't get, or don't want to be assessed for, standard insurance. But before you buy, it's worth comparing:
- ✓A standard life insurance policy, often better value if your health is reasonable
- ✓A prepaid funeral plan, which fixes the funeral cost itself and is FCA-regulated, see our funeral costs guide
- ✓Simply saving or earmarking money, which keeps full control and can't be 'lost' by missing a premium
This guide is general information, not financial advice, and we don't recommend specific products. For free, impartial help see MoneyHelper (moneyhelper.org.uk), or use an FCA-regulated adviser (check them at register.fca.org.uk).
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
Is over-50s life insurance worth it?
It can be, if you can't get standard life insurance or want guaranteed acceptance with no medical, and you mainly want to leave something towards funeral costs. But it has real drawbacks: a 1 to 2 year waiting period, a fixed payout that loses value to inflation, and the risk of paying in more than it pays out if you live a long time. Compare it with a standard life policy, a prepaid funeral plan, or saving, before deciding.
Can you be refused over-50s life insurance?
No, these are 'guaranteed acceptance' plans for people in the eligible age range (usually 50 to 80), so you can't be turned down and there's no medical or health questions. The trade-off for that certainty is the waiting period and a fixed, often modest, payout.
What is the waiting period on over-50s life insurance?
Most plans have a 1 to 2 year waiting period. If you die of natural causes during that time, your family usually only gets back the premiums you've paid, rather than the full lump sum. Death by accident is normally covered straight away. Once the waiting period has passed, the full payout is made whenever you die.
Can you pay in more than an over-50s plan pays out?
Yes, and it's the main catch. Because you keep paying premiums for life (or until a set age such as 90), someone who lives many years after taking out the plan can pay in more in total than the fixed payout. It's a life insurance product, not a savings plan, so it's important to weigh up the likely total cost against the payout.
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