• Common Over 50s life insurance jargon explained

    When you want to compare over 50s life insurance, or searching for the best over 50s life insurance plan for you, you might get bamboozled by some of the words used, particularly in the terms and conditions. To make your life easier, we’ve simplified some of the jargon you might come across when you’re looking into over 50s life insurance.

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    Accidental death benefit

    An amount paid out by the insurer if you die as a result of an accident during the moratorium. See Moratorium.


    If you don’t pay a premium on time and so fall behind, you are classed as being in 'arrears'.


    Over 50s life insurance is sometimes referred to as ‘assurance’ because it will pay out on your death whenever you die. This is because death is certain (assured) to happen.


    Beneficiary / Beneficiaries

    The person, or people, who will receive the money paid by your life insurance when you die; in other words, the people who will benefit.



    The amount of protection (in reality, the money) your Over 50s life insurance will provide when you die. See also Sum assured.



    Everything you own at the time of your death including property, land, personal possessions, savings, investments and life insurance.


    Fixed eg. Fixed premium / Fixed cash sum

    The premium and cash sum is set on the day your policy starts and will never change.

    Funeral Benefit Option

    An option available with some over 50s life insurance that enables the money your policy will pay out on your death to be paid directly to a funeral director and put towards the final cost of your funeral.

    Guaranteed acceptance

    As long as you meet the age requirements and are a UK resident, you will not be turned down when you apply, regardless of your health.



    The general increase in the price of goods and services over time. According to the Office of National Statistics, in 1980 £1 bought nearly three loaves of bread. Today £1 would only buy one loaf. With over 50s life insurance, the cash sum is fixed, so inflation will reduce its value over time.


    Life assured

    The named person on whose death the policy will pay out.



    The amount of time you must wait before Over 50s life insurance will pay out the full cover amount. For example, two years from the start of the plan.


    No medical insurance

    Insurance that only requires you to meet age and residency criteria - your health is irrelevant. For other types of life insurance eligibility and the amount of cover offered is usually determined by your health and lifestyle.



    The contract between the insurance provider and the person taking out the insurance. See Policyholder.

    Policy documents

    The documents you receive when you take out over 50s life insurance. These include the policy schedule detailing the life assured, cover and payment details as well as full terms and conditions. These should be kept safely as they will be needed to make a claim.


    The legal owner of the insurance policy. Whilst the policyholder is often the same person as the life assured, this is not always the case.


    This is the amount of money you must pay every month for the rest of your life. Some over 50s life insurance has the option to pay up to a certain age.


    Sum assured

    The amount of money the insurer will pay out when the policyholder dies. The sum assured can also be called the cover, lump sum, cash sum or payout.


    Written in trust

    A trust is a legal arrangement that lets you confirm who should receive the payout from your life insurance. Writing your policy in trust means the payout will be outside of your estate for inheritance tax purposes and does not need to go through probate, so your loved ones could get access to the money more quickly.

    Whole of life cover

    Exactly what it says. As long as you keep paying your premiums when they are due, you will be covered for the rest of your life and the policy is guaranteed to pay out whenever you die.

    SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, pet insurance, ISAs and Will writing services.