Over 50s life insurance is, as you would expect, life insurance that is available only to those aged 50 and over. When you take out an over 50s insurance policy, you will pay a monthly premium so that, when you die, a lump sum will be paid out to cover funeral expenses, pay off any outstanding debts or as a gift to your nearest and dearest, depending on your particular needs.

Acceptance guaranteed

One of the major benefits of choosing an over 50s life insurance policy is the fact that acceptance is guaranteed. That means even if you have existing medical issues, you will be able to take out a policy. At no point will you be asked to answer any questions about your health, nor will you be required to pass a medical before you are able to start your policy.

That means, providing you are between the ages of 50 and 80, or possibly 85 depending on the over 50s policy, should you apply, you will not be turned down.

Fixed premiums

One of the biggest benefits of the best over 50s life insurance policies is that monthly premiums tend to be fixed. This means that you can choose a policy that suits your budget and cover level with ease, safe in the knowledge that the price will never rise.

Of course, once you take out an over 50s life insurance policy, you must ensure that you pay your premiums on time each month because even missing one payment could mean that you are no longer covered and you would not be able to get any of the money you’ve paid in back.

Fixed payouts

A common feature of most, although not all, life insurance for over 50s is fixed payouts. This means that no matter how much or little you pay in, you will only ever receive a set amount of money back when you die. Typically, this is no more than £25,000, but you will be able to choose your payout amount when choosing an over 50s life insurance policy.

This does potentially mean that you could pay in more than you get back. It does also mean that inflation could reduce the value of your payout, especially if a claim is not made until 20 or 30 years after the start of the policy, which means that you should think about your options very carefully before buying a policy.

Increasing life insurance

Of course, there are a handful of insurance companies that offer increasing life insurance for the over 50s which means that the sum your life is insured for and the premiums you pay for coverage are reviewed annually in line with inflation. These kinds of policies hold their value as the years go by, but your premiums will also increase over the years to maintain that increase. For that reason, it’s important that you consider whether you will be able to keep up the premiums as you get older BEFORE you take out this kind of policy.

Minimum payment length

It’s worth noting that most insurers require you to have paid into your over 50s insurance plan for a set period before a full payout can be made. This is usually a period of 12-24 months, but it can vary between insurance companies.

If you were to die before reaching that cur-off, your beneficiaries would usually receive an amount equal to the premiums you had paid up until the time of your death. If, however, you were to die in an accident, you would typically receive the full policy amount.

Free coverage

Most over 50s life insurance policies offer free coverage for anyone who reaches a certain age, with 90 being the most common cut-off point for paying premiums. Should you reach this point, you’ll no longer have to worry about paying monthly premiums, while still benefiting from an active life insurance policy.

Funeral benefits

Funeral expenses are creeping up all the time, so it’s no surprise that many older people are worried about ensuring their family can cover the cost when the time comes. If this is something that you’re worried about, you’ll be pleased to know that there are a number of life insurance policies for the over 50s that offer funeral benefits which could see your relatives get a more substantial payout or a discount on your funeral when the time comes.

Why not work out how much money you could save by using our over 50 life insurance calculator.