Guide to buying life insurance if you're over 50
As you get older, taking out life insurance can get more expensive. Even the fittest 50 something isn’t going to be around for as long as they were in their 30s and that makes you a greater risk to the insurer. Over 50s life insurance can offer a more affordable way to protect what matters at this stage in life.
By the time you reach your 50s, your life insurance needs may have changed. Where once keeping a roof over your family’s head was the priority, today the children may have flown the nest and the mortgage may be coming to an end.
These days, you may be concerned about how your loved ones may cope with funeral costs or want to leave a little something for them to remember you by and over 50 life insurance could be the solution.
What is over 50 life insurance?
It’s a whole-of-life insurance policy so unlike term life insurance, you’re covered for the rest of your life and a cash payout is guaranteed whenever you die.
It’s easy to apply for because you don’t have to provide any details of your medical history or lifestyle to qualify for cover. Most providers guarantee to accept any UK resident aged 50-80, and with the SunLife Guaranteed Over 50 Plan cover is available up to age 85.
How does our cover work
Important things you should know
- There is a waiting period of a year — You need to have paid in to the plan for a year or more before the full amount will be paid out on your death. If you die during the waiting period, all the premiums paid will be paid out, but if you die by accident the full cash sum will be paid
- You must pay your premiums when due — If you stop paying your premiums your insurance will end and you won’t get anything back
- The effect of inflation — Inflation will reduce how much the fixed cash payout will buy in the future
- You could pay more in premiums than the cash payout on death — this will depend on how long you live
Here’s an example of the Guaranteed Over 50 Plan in action for a range of ages.
Remember, the cash payout and the premium you pay will never rise.
|Cash payout on death after 1 year||£4,978||£4,001||£3,314|
Quoted on 01.04.2019
If you don’t want to pay every month for the rest of your life, SunLife offers a Premium Cap Option - a different way of paying into an over 50s life cover plan.
The Premium Cap Option is where you pay a higher monthly cost for a set period of time for the same amount of cover. To find out more about this option, call us for free on 0800 904 7674.
Reasons why people choose it
- To leave money as a nest egg for loved ones
- To contribute towards the cost of a funeral
- To leave money to help settle unpaid household bills
- To leave a donation for a favourite charity
SunLife Over 50 life insurance – straightforward and affordable
- You won’t be turned down - Your acceptance is guaranteed without having to answer a single medical question
- You’re covered for life - A cash payout on death is guaranteed, once you’ve had the plan for at least a year and have been paying your agreed regular premiums
- Accidental death benefit from day one - The full cover amount will be paid out if you die as the result of an accident Full details terms and conditions (PDF)
- It’s the most affordable over 50 life insurance plan available - Premiums start from less than £4 a month1
- You’ll always know where you stand - The premium you pay and the cash payout will never change
- You can choose how long you pay premiums for:
- Premiums for life: Pay every month for the rest of your life
- Cap your premiums: Pay a higher premium every month until a set date then stop. It is available for anyone aged 50-80 via telephone. Please call 0800 904 7674 for a quote.
How the plan will pay out
|Full cash payout||
|100% of all premiums paid so far||
You die from any cause other than an accident during the first year.
If you stop paying your premiums your insurance will end and you won’t get anything back.
Rising funeral costs
Our research has revealed that on average, families have to find £2,559 to make up the shortfall in the financial provision made by their loved one2.
Planning ahead can make a difficult time a little easier for the people left behind, especially if they might struggle to pay for the entire funeral themselves.
Over the past 15 years the average cost of a funeral in the UK has risen 112% to £4,2712. And assuming costs continue to rise at the same rate as we’ve seen over the past decade, the average funeral will cost over £5,000 in five years’ time.
How funeral costs add up
The average funeral cost is based on the average of quotes from a sample of funeral directors for standard funeral arrangements — made up of their services and fees for a cremation or burial, the doctor and the person conducting the funeral.
Bear in mind that any touches like flowers, venue hire, catering and memorials average out at over £2,000 extra on the final funeral bill2.
Figures like these help explain why over 69%3 of our over 50 life insurance customers choose the plan to help with funeral costs and ease the financial burden on loved ones.
Want to help with funeral costs?
With our over 50 life insurance it costs nothing to add a funeral benefit option and you get an extra £300 put towards the cost of your funeral.
The way it works is simple. When the time comes, the cash payout from your plan will go directly to Dignity Funerals to take care of the arrangements. Your loved ones will only need pay the balance left after the cash payout and the £300 have been taken off the final funeral bill.
Straightforward answers to your questions
Term life insurance provides cover for a specified number of years (the ‘term’) and pays out if you die during this time. This type of life insurance is underwritten so your eligibility, premium and cash payout is based on your personal circumstances e.g. medical history.
Over 50 life insurance provides cover for the rest of your life and pays out whenever you die. It is not underwritten so does not depend on your personal circumstances. You only need to be a UK resident and within the given age range to get cover.
Life cover pays out a fixed amount of money when you die. This money could be used to help pay for your funeral or it could be used to pay other bills or left to a friend or loved one.
A funeral plan helps specifically with your funeral arrangements when you die. This help is usually practical as well as financial.
This will depend on what you would like the payout to be used for, for example, to help with funeral costs or a cash gift.
It’s important to think about how much you can comfortably afford to pay each month and see what the payout will be for this premium, based on your age. Remember, even leaving a small amount could help when it matters most.
Yes you can. You just need to make sure the total cash payout of all your SunLife plans combined, including any you already have, doesn’t exceed £18,000.
No, plans are set up in individual names. If your partner would also like a policy, they can take one out in their own name.
Yes. You have 30 days to change your mind and have any premiums you’ve paid refunded to you.
After 30 days, you can cancel your policy but you won’t get any money back.
No you can’t. If you stop paying your premiums, your Guaranteed Over 50 Plan would be cancelled and you wouldn’t get any money back.
Over time, prices go up which means the amount we can buy for our money goes down. This is the effect of inflation.
For example, in 1980 you could buy nearly three loaves of bread for £1, but today you would be lucky to buy one*.
*Source: Office of National Statistics (as at July 2018) Crown copyright material is reproduced with the permission of the Controller of HMSO
Making a claim is simple. when the time comes, all your loved ones will need to do is call or write to us and we’ll help with the rest.
Why choose SunLife for over 50 life insurance?
The smallest print
1. SunLife offers the lowest monthly premium option of £3.70, making it the most affordable way to take out over 50s life cover.
2. Source: SunLife Cost of Dying Report 2018.
3. Source: New Policyholders Continuous Research, January - October 2017.