Over 50s Life Cover
What over-50s life cover is, how the policies generally work, and the things you should weigh up alongside your estate planning.
We have written this page as a general overview only. Nothing here counts as financial, legal, or tax advice. We do not sell life insurance at Keystone Estate Planning. Speak to an independent financial adviser before you make any decisions.
What Is Over 50s Life Cover?
Over-50s life cover is a whole-of-life insurance policy. It pays a fixed, tax-free lump sum to your family after you die.
Whole-of-Life Policy
A type of life insurance designed for people aged 50–85. Acceptance is typically guaranteed with no medical questions or health checks required.
Fixed Monthly Premiums
You choose a monthly premium, typically between £5 and £100. Your premium amount usually stays the same for the life of the policy.
Tax-Free Lump Sum
On death, a fixed tax-free lump sum is paid to your beneficiaries. The payout amount depends on your age at the start and your chosen premium.
How It Typically Works
Over 50s life cover policies generally follow four key stages
Choose Your Premium
You pick a monthly premium that works for you, usually between £5 and £100.
Guaranteed Acceptance
Most policies accept all applicants aged 50–85 with no health questions.
Premiums Are Fixed
Your monthly payment typically remains the same throughout the policy.
Payout On Death
A tax-free lump sum is paid to your beneficiaries or estate when you pass away.
Key Things to Consider
Before taking out any life cover policy, it's important to understand these key considerations.
Waiting Period
Most policies have a 12–24 month moratorium period. If you pass away within this period from natural causes, your premiums may be returned rather than the full payout.
Premiums vs Payout
Be aware that if you live a long time, you might end up paying in more than your family gets back. Think carefully about whether the numbers stack up for your situation.
Placing Policy in Trust
Putting the policy into trust means the payout skips your estate, so it avoids inheritance tax and reaches your family faster. A financial adviser can explain how trusts work in practice.
Average UK Funeral Costs
The average UK funeral cost is approximately £4,000 or more (source: industry estimates). Over 50s cover can help ensure funds are available for these costs.
Non-Cancellation
Miss your premiums and the policy could lapse, leaving your family with nothing. Find out from your provider how much grace you get and whether you can restart a lapsed policy.
Seek Independent Advice
Before signing up, sit down with an independent financial adviser to make sure the policy actually fits what you need.
Always Seek Independent Advice
Over-50s life cover suits some people well and is poor value for others. The only way to know is to look at your own numbers. An adviser can run the comparisons and tell you whether a policy makes sense for your budget and your family.
We make Wills and Lasting Powers of Attorney at Keystone Estate Planning. Life insurance is outside what we do.
Plan Your Estate Today
While life cover can help with funeral costs, a will ensures your wishes are carried out.