If you are over the age of 50, you might assume that an Over 50s policy is your only option. Here we compare it to other policy types.Start a Free Quote
When it comes to taking out life insurance, you have a number of options in finding the right type of policy to suit you. The right life insurance cover can depend on your personal circumstances, including factors such as age and health. If you are older and haven’t yet taken out life insurance, you might be tempted with over 50s cover.
In this section, we’ll explain what Over 50s life insurance means and how it compares to other types of cover. We’ll cover:
· What is Over 50s life insurance?
· Who is Over 50s cover suitable for?
· Over 50s vs Level Term life insurance
· Over 50s vs Whole of Life insurance
Over 50s life cover is usually taken out if you are between the ages of 50 and 80. It can provide a lump sum pay-out when you pass away, offering financial help for your loved ones. As you get older, it can be more difficult to secure standard life insurance, particularly if you have health problems.
Over 50s life insurance can be beneficial if you want to make sure you leave something behind for your family.
In some cases, this type of life insurance will have a moratorium period, usually lasting 2 years. This refers to the amount of time you must wait before the full benefit amount will be paid out.
If you are over the age of 50 and don’t have life insurance yet, you might assume that an Over 50s policy is your only option. However, Over 50s life insurance is most suited to those who might struggle to be accepted for standard cover.
If you have a pre-existing medical condition or you would like to get life insurance without answering health questions, Over 50s life insurance can help. This is because a policy of this kind guarantees acceptance, no matter your current health condition.
The biggest difference between these two types of cover is that Level Term life insurance will only run for a fixed number of years. Over 50s policies usually last for the rest of your life.
With Level Term life insurance, you will likely have to answer some basic health questions in order to gain an accurate quote. Over 50s insurance guarantees acceptance without any medical information.
Both Over 50s and Level Term life insurance will provide a lump sum pay-out, unless you pass away after your Level Term policy has ended or you do not maintain payment of your premiums
It's worth noting that even if you are over the age of 50 and have existing medical conditions or illnesses it could still be possible to get Level Term Life Insurance.
Both Over 50s life insurance or Whole of Life insurance will cover you from the moment you take out the policy for the rest of your life. However, you can take out Whole of Life insurance at a younger age than 50.
Whole of Life insurance is similar to Level Term insurance in that you will need to answer some basic health and lifestyle questions, before accessing cover. With Over 50s life insurance, you will be guaranteed acceptance. So, if you are older, suffer from ill health or you are a smoker, Over 50s cover may be the more suitable option.
However, this means that typically Over 50s life insurance can be the more expensive option.
** Premiums and payout based on a healthy non-smoker who is an office worker and doesn't have a hazardous lifestyle up to the age of 65. The premium shown is based on Aviva's Income Protection + Plan and is subject to a full underwriting process. Prices are correct as of January 2022.
This calculator is for informative purposes only and is not to be taken as financial advice, for accurate financial advice please consult with an advisor from Caspian Insurance.