Over 50s Life Insurance
Over 50s Cover is a type of life insurance plan that pays out a fixed lump sum to your loved ones when you die. It’ll give you peace of mind that they’ll have the money available to cover things like funeral expenses or outstanding debts after you’re gone.
Over 50s life insurance plans work a bit differently to life insurance for younger people:
Is there guaranteed acceptance?
Yes, you’re guaranteed to be accepted. There are no questions about your lifestyle or health if you’re over 50 and taking out a life insurance plan.
Can’t I just take out ordinary life insurance when I’m over 50?
You can still get quotes for ordinary life insurance. Although, as you get older, generally premiums go up. This will especially be the case if you have health or medical issues. Additionally, the term that you can cover will also be relatively short. Nonetheless, Over 50s life insurance plans will cover you for a term lasting right up until your death and don’t take your medical history into account. Therefore, you won’t be penalised for health conditions and other issues of that nature.
The moratorium period of 2 years in Over-50s Life Insurance means that if the policyholder passes away within the first two years of taking out the policy, the insurer will not pay out the full death benefit. Instead, they may refund the premiums paid or offer a partial payout.
This restriction is in place because Over-50s Life Insurance typically does not require medical underwriting, meaning people in poor health can still qualify. The waiting period helps insurers manage risk and prevent immediate large payouts for individuals with serious pre-existing conditions.
After the two-year moratorium, the full cover amount is paid out regardless of the cause of death as long as all the premiums have been paid and are up to date.