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The pros and cons of over 50 plans

A straightforward summary of the pros and cons of over 50 plans.

What you should know about over 50 plans

Reaching 50 is a bit of a milestone. When you look back at your life so far and ponder what the future holds. You may also decide to get your affairs in order so you’re sorted and can get on with enjoying life. If you’re looking at ways to leave some money to help with funeral costs or as a gift, you might be considering an over 50 plan.

In this article, we take a look at the pros and cons of this type of no-medical life insurance to help you decide if it’s the right choice for you.

Over 50 plan pros and cons: mature hipster typing on laptop

The pros of an over 50 plan

You can’t be turned down

As long as you're a UK resident aged somewhere between 50 and 80 (or 85 with SunLife), then you can get an over 50 plan. So if you’re worried you’ve left it too late, smoke or have any health concerns, this type of life insurance for the over 50s could be a good option. You won’t have the hassle of a medical or need to answer any questions about your health or lifestyle.

A cash payout is guaranteed on death, whenever that is

Unlike term life insurance, an over 50 plan covers you for the rest of your life and will pay out a cash sum when you die, regardless of when that is. Once you’re through the initial waiting period and as long as you pay your premiums when required, your agreed amount will be paid out when you die.

Affordable monthly premiums

The cash payout might be smaller than other forms of life insurance, but you do not have to complete a medical in order to receive it. If you’re on a budget, it could provide a more affordable way to do as much as you realistically can to help your loved ones financially when you die. With Sunlife’s Guaranteed Over 50 Plan, you can choose a premium from less than £4 a month.

The payout is usually quick

Another reason to consider over 50 life cover type of life insurance is that when you die, the claims process is usually simple and quick.

Considering over 50 life cover: mature couple reviewing paperwork

The cons of an over 50 plan

There’s a waiting period at the start

The price of guaranteed acceptance is a waiting period of up to 2 years before the full cash sum will pay out on death. If you die during this waiting period, called a moratorium, most insurers will pay out the premiums already paid in as a minimum, but it's worth checking.

Inflation will take its toll

As the amount of the cash payout is locked in on day one, inflation will take its toll on the value of the payout as the years go by. In other words, a £2,000 payout won’t buy as much in 2025 as it does today.

Stop paying and your cover ends

If you stop paying into your over 50 plan for any reason, your policy will be cancelled, cover will end and you won’t get any money back, regardless of how much you've already paid in. If you do not pay the premiums, the Plan will be cancelled and you will not get any money back.

Premiums can change once the plan is in place

With some providers, inflation can mean that monthly payments go up. However, when you take out over 50 life cover with SunLife, you know exactly how much you will have to pay each month and how much the plan will pay out when you die. So, you can be confident there won’t be any unexpected increases to what you pay or reductions in the amount paid out.

There’s a chance you pay in more than is paid out

If you pay into your plan for many years, you could end up paying in more than the amount paid out when you die. It’s impossible to predict if this will happen simply because it will depend on how long you live. Equally, you may die within a few years of taking out a plan, in which case the opposite would be true.

With SunLife’s Guaranteed Over 50 Plan, you can opt to pay a bigger premium each month over a certain number of years for the same cash sum, then stop paying altogether. We call this our Premium Cap Option and, don’t worry, you'll still be covered for the rest of your life. It is available for anyone aged 50-80 via telephone. Please call 0800 904 7674 for a quote.

Over 50 plan to help loved ones: grandma and granddaughter looking at photos

We hope this gives you a better idea of how over 50s life cover works. As with any financial decision, it's important to weigh up all the risks and benefits before you do anything, so here’s a simple summary:

5 benefits of SunLife’s Over 50s life insurance

  1. Guaranteed acceptance with no medical
  2. Guaranteed cash payout on death
  3. Affordable monthly premiums
  4. Fixed cash payout and monthly premiums
  5. Quick payout when a claim is made

What you must bear in mind

  1. There’s a wait of up to two years before the full cash sum will pay out
  2. Inflation may reduce the value of the cash pay out
  3. Stop paying the premiums when due and your plan will be cancelled and you won’t get any money back
  4. You could pay in more than the cash paid out when you die
Over 50 plan for peace of mind: mature group of friends taking selfie

Ultimately, if you’re comfortable with the both the pros and cons of an over 50s plan, it could be a simple and affordable way to give you and your loved ones peace of mind, so you can get on with making the most of the years ahead.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife?

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). Dignity Funerals is not authorised or regulated for this activity by either the Financial Conduct Authority or the Prudential Regulation Authority. Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan the funeral services are arranged and provided by Dignity Funerals Limited. Dignity Funerals Limited is a company registered in England and Wales No. 00041598. VAT registered No. 486 6081 14. 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands, B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 808. Part of Dignity plc. A British Company. Dignity is not authorised or regulated for this activity by the Financial Conduct Authority or the Prudential Regulation Authority but is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services. Dignity Funerals is not authorised or regulated for this activity by either the Financial Conduct Authority or the Prudential Regulation Authority. Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides Family Life Insurance?

SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. 

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.