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Guide to over 50 life insurance

Last updated 4th March 2020

This article explains how over 50 life cover works, so you can decide if this kind of insurance plan could be right for you. Please bear mind it is not financial or legal advice.

What is over 50s life insurance?

Over 50 life insurance is an affordable type of life cover for anyone over 50. You pay a monthly premium and the policy pays out a cash lump sum – known as ‘the payout’ or ‘the sum assured’ – when you die.

The money is paid to loved ones and is often used to help cover your funeral costs, but it can be spent however they wish.

How does over 50 life insurance work?

There are four main factors that affect how over 50 life insurance works.

1. Guaranteed acceptance with no medical

You can take out over 50s life cover without having a medical or answering any health questions, so you are guaranteed to be accepted. Other types of life insurance might ask you to complete a health questionnaire or take a medical exam.

2. Fixed monthly premium

With the majority of over 50s plans, the premiums are fixed. ‘Fixed premiums’ means they never go up. If you take out a plan today for ten pounds a month, that is the amount you will continue to pay – the insurance company can’t suddenly increase your payments.

As you’ll be paying the premium for the rest of your life, you should consider how much you can comfortably afford to pay, each month.

There are some providers that will offer changes to premiums. This is called indexation. This means both the monthly premium and the payout can increase each year. It is important to be clear about premiums before you take out a plan.

3. Fixed cash lump sum

Over 50 plans pay out a fixed cash lump sum (the ‘payout’ or ‘sum assured’) when you die, no matter how long you live. You choose what payout you would like when you take out the plan, and because the payout never changes you know exactly how much it will be when you die. It can help with your funeral planning or give you and your family peace of mind. The bigger you want the payout to be, the more you will need to pay each month as a premium.

Over 50s life cover is known as ‘whole of life’ insurance because it covers you ‘for the whole of your life’. Other types of insurance only pay out if you die within a certain time period.

4. Your age

To take out over 50 life insurance, you usually have to be aged 50 or over (or for some products, you can be 49). There’s also usually a limit on how old you can be when you take out cover – you can’t take out a new plan when you’re 90, for instance.

The older you are, the more your monthly premiums will be for the same payout. For example, if you want a payout of £5,000 and you are 60 years old when you take out a plan, your monthly premiums will be more than if you want a payout of £5,000 and you are only 50 years old when you take out the plan.

If you want to take out over 50 life cover, you could think about how much you would like to leave your loved ones and look into how much that would cost a month. Or you could work out how much you would be comfortable paying each month and see how much the payout would be.

grandparent and grandchildren working in the kitchen

What are the pros and cons of over 50s life insurance?

Like all insurance policies, there are pros and cons to this type of life cover. Let’s explore these in more detail.


  • Guaranteed acceptance - unlike traditional life insurance policies, you won’t need to answer any health questions or pass a medical.
  • Guaranteed fixed cash payout – when you take out your plan, you’ll know exactly how much money will be paid out to your family when you die.
  • Fixed monthly premiums - you can choose how much you can afford to pay each month and the amount you pay will never rise (unless otherwise agreed).
  • Whole of life cover - you will be covered for the rest of your life until you die.
  • Easy claims process - making a claim is simple and quick so your family will get the money within days.
  • Spend as you wish - you can leave your loved ones a cash lump sum for them to spend how they wish. Providers won’t ask questions or put any restrictions on their spending.


  1. You'll need to pay every month for a set amount of time - you usually pay each month up to a predetermined date, after which the premiums stop, but the cover continues. With some over 50s insurance providers, you pay each month until you die. Some providers offer options to stop paying earlier or have a cease age. Be sure to check the details of your plan before you commit.
  2. Waiting period - you need to have paid into your plan for 1 or 2, or even 3, years with some providers, to get the full cash payout.
  3. You can't miss payments - if you stop paying for your plan, your cover will end and you won’t get back the money you’ve paid in. Your family will either get nothing or a partial payout, depending on the plan.
  4. You could pay in more than the payout - depending on how long you live, you could pay more in premiums than the cash payout. For example, if you took out an over-50s life insurance policy at age 50 and paid £20 a month for £6,052 of cover, you’d have paid more the cash payout if you live past 25 years and 2 months.

Frequently asked questions

Q: Why do people choose to take out over 50 life insurance?

A: By the time people reach their 50s, it’s possible that their insurance needs may have changed. While providing for their family might have been their priority before, for someone over 50, funeral costs, or leaving a financial gift for a loved one may take precedence.

Here are some top reasons as to why people choose to take out an over 50s plan:

  1. To leave money as a nest egg for loved ones
  2. To contribute towards the cost of a funeral
  3. To leave money to help settle unpaid household bills
  4. To leave a donation for a favourite charity

Q: Is life insurance over 50 worth it?

A: Whether over 50s life insurance is worth buying will depend on your circumstances. Start by asking yourself these questions.

  1. Do you already have money put aside to help pay for your funeral?
  2. Have you considered expensive funeral costs?
  3. When you die, will there be enough money in your estate to settle any outstanding debts and to leave some money for loved ones if you’d like to?
  4. Do you already have life insurance that covers you for the rest of your life?

If the answer is yes to every question, then over 50s life insurance may not be the choice for you. But if your answer is no to any of them, it could be worth considering.

Q: How can I ensure my family get the money when I die?

A: You can make a will and request that the money from your over 50 life insurance is paid to the person you would like to receive the cash sum. This could be the executor of your will or the person arranging your funeral.

We recommend seeking legal advice if you’re concerned about whether the right person will claim on your insurance.

Making a claim for an over 50s plan is usually simple but could differ by provider. So, it’s worth checking when comparing life insurance.

Q: What is the best over 50s life insurance?

A: If you’ve decided over 50 life insurance is the right choice for you, you’ll probably want to compare the plans available.

Most over 50 insurance plans have similar product features, but there are some key differences that will determine what the best plan is for you. Key differences to look out for and compare are:

  • The cash payout for your age and premium will differ by provider
  • Some providers offer an option to stop paying your monthly premiums at a certain age.
  • How long you have to pay in before you’re fully covered – usually 1 or 2 years

You might also want to find out how quick and easy claims process is. When you pass away, it might be important that your family get the payout quickly.

Some providers also offer a welcome gift with your plan, to say ‘thank you’ for choosing them.

Q: What are the alternatives to over 50 life insurance?

A: Over 50 life cover is not the only way to help with funeral costs or to settle any unpaid expenses you leave behind. Here’s some of the alternatives you could consider:

  • A funeral plan
  • Savings
  • A loan
  • Public Health Funeral

Funeral plans, a savings pot and over 50 life insurance are all ways to offer financial protection to loved ones. Let’s look at some of the key differences between them.

An insured funeral plan helps specifically with your funeral arrangements when you die and covers the full cost of your chosen funeral services. The payout from a funeral plan must go to the funeral director to pay for your funeral. This type of funeral plan is usually paid for with monthly premiums which stop when you get to a certain age, such as age 90.

There are also uninsured funeral plans where you simply pay in advance for your funeral, whether in one lump sum or in instalments. Funeral plans will cover funeral costs and not any unpaid expenses.

Setting aside savings is a way to protect your family when you die. It means you won’t pay any extra costs or fees, however it will require a lot of discipline which can be difficult. Savings will also be affected by inflation, meaning if you have a specific amount saved in the future, it won’t be worth as much as it was at the time of saving.

A Public Health Funeral, also known as a paupers’ funeral, is arranged by a local council as a last resort for someone who has died alone, without any relatives. They are a no frills service and you cannot make any choices towards what takes place.

Q: What about term insurance?

A: Term life insurance provides cover for a set 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 condition and history.

With this type of life insurance, the payout will normally be bigger than for over 50s cover or a funeral plan. However, term insurance only covers you for a set period of time ‘just in case’ the worst should happen. You could live longer than the period of cover and so won’t get a payout (unlike over 50 life insurance where the payout is guaranteed).

Ultimately, only you can decide what’s right for you and your family. Each of these life cover options can give you peace of mind that your family will be looked after when you’re gone.

There a variety of options available and you should seek financial advice to see what might be best for your circumstances.

Money Advice Service there are a variety of options available and you should seek financial advice to see what might be best for your circumstances.

happy couple smiling in the countryside

Key terms to understand

We’ve simplified some of the phrases you might come across when you’re looking into over 50s life insurance.

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 (e.g. 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. The chosen funeral director will also make a small additional contribution to the 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 you could buy nearly three loaves of bread for £1, but today you would be lucky to buy one. Inflation reduces buying power over time.

Source: National Statistics website (as at February 2020) Crown copywrite material is reproduced with the permission of the Controller of HMSO

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, one or two years from the start of the plan.

Non-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.


Also called ‘the monthly payments’, your premium 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.


Underwriting in insurance is when an insurance company decides how much cover (or what payout) a customer should receive – and how much a customer should pay for it. It is the process of measuring risk and how much the customer should be charged for the insurance company to safely accept that risk. It takes into account factors like age, health, occupation etc.

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.

Where to get financial advice

information icon The information in this article is provided for general guidance only and is not offering financial advice.

Here’s some ways you can seek unbiased financial advice.

Find out more about this type of life cover, how much it could cost and why SunLife’s Guaranteed Over 50 is the most popular over 50 plan.*

Find out more

*Most Trusted/UK's Favourite - Source: Association British Insurers statistics.

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). 

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, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). 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 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.