Is Over 50s Life Insurance Worth it?

Over 50s life insurance might be worth considering if you don’t have a lot of savings, and don’t want your loved ones to have to deal with any unexpected costs, such as your funeral.

If you’re aged between 50 to 80 and considering your options, it’s good to understand how life insurance can help support you and your family and give you peace of mind.

In this article, we explore the ins and outs of over 50s life insurance so you can learn whether it’s right for you.

What is Over 50s Life Insurance?

Over 50s life insurance is for those aged 50 – 80, to support in reducing the financial impact of unexpected deaths on those dependent on you. 

Some life insurance plans have a fixed period term, which is called term insurance, whilst others will last for the rest of your life which is called whole of life insurance. 

If you die within the term of your life insurance, your beneficiaries will receive either a tax-free lump sum, or a monthly payment to spend on whatever they choose. Most people use this payout to repay debts like mortgages, and in the case of over 50s life insurance, it can be used to pay towards the costly expenses of a funeral. 

For more information about our Over 50s Life Insurance plan, watch our video:

Advantages & Disadvantages of Over 50s Life Insurance 

If you’re on the fence about whether or not to take out life insurance for over 50s, it’s a good idea to weigh up the positives against the negatives. Below, we’ve outlined the pros and cons to help you make an informed decision.

Advantages of over 50s life insurance

Some of the advantages of life insurance include:

• Guaranteed cash payout: If you don’t have much in your savings account and anything happens to you, life insurance can help give you peace of mind by reducing the financial burden on your loved ones; such as funeral costs, accumulated debt, and any other expenses. 
• Guaranteed acceptance: As long as you’re aged 50-80 and live in the UK, you’ll be accepted for over 50s life insurance. 
• No medical needed: As long as you’re eligible for over 50s life insurance based on your age, you won’t be required to answer any medical questions. 

What to be aware of with over 50s life insurance

• You could end up paying more in the long term if you live a long time. 
• Your plan may be cancelled if you miss any premiums. It’s important to stay on top of all your premiums, as your insurer may cancel your plan if you miss any payments.
• The guaranteed cash lump sum doesn’t increase with inflation. This means your money may lose value over time. 
• There is no guarantee that it will cover the cost of a funeral

Do I need over 50s life insurance?

Life insurance isn’t a legal requirement, however if you are over 50 then it could be worth taking out a policy if you want to protect your loved ones from having to take over your financial burdens when you pass away.

Whether or not you need over 50s life insurance can depend on a variety of factors. Mostly, it depends on if you have children or other financial dependents who would benefit from extra financial support after you pass.

However, it’s unlikely that you’ll need to take out a life insurance plan if one of the following scenarios applies to you:

• Your spouse or partner has enough money to take care of your family if something happens to you.
• You have enough money in your savings or other assets (like property) to support your family if you weren’t around.
• If you have no existing debts and already have plans in place for your funeral.

What Happens if Someone Dies Without Life Insurance?

Without life insurance, your loved ones could be left worrying about how they’re going to handle financial burdens without you, all whilst grieving your loss. They could be left with expensive funeral costs or accumulate debts that they might find difficult to pay off. 

For some, topics like life insurance can seem daunting, which is why many avoid discussing it. However, it’s important to explore your options fully, looking at the benefits and weighing up the costs, to decide whether life insurance would be beneficial for you and your loved ones. 

Different Types of Life Insurance for Over 50s

There are various different types of life insurance, each offering different benefits. We’ve outlined a few of the main ones below.

Guaranteed Over 50s Life Insurance

Over 50s life insurance is a type of whole life insurance that’s designed to help give people aged 50-80 peace of mind that their loved ones will receive a guaranteed cash payout to help with unexpected bills or funeral costs when they die. 

Our Over 50s life insurance offers a guaranteed cash payout, and a 100% acceptance rate, with no medical questions asked. We also give you the option to add additional funeral support, so you can nominate Co-op Funeralcare to receive your cash lump sum to take the pressure of funeral costs off your loved ones. With this add-on, Co-op Funeralcare offers a discount of up to £250 on your funeral, on top of your life insurance cover.

Term Life Insurance

Term life insurance runs for an agreed period of time, often 10 or 20 years. If you die within this term, a payout is made. If you’re still alive at the end of the term, the cover also ends and you’ll need to think about taking out another policy.

Mortgage Life Insurance

Mortgage life insurance is a type of policy with a term that decreases over time. It’s linked to your mortgage, so the amount of time left on your policy reduces in line with your mortgage. If you have an interest only mortgage, then a level term life policy may be more suitable

Critical Illness Insurance

Critical illness insurance is designed to help you if you become seriously or terminally ill. Insurance companies will pay you a lump sum if this happens. Some life insurance providers let you add this onto different policies for an extra level of cover.

You can take a life & critical illness policy that would pay out on the ‘first event’. This means that if you were to be diagnosed with a specified critical illness, then the sum assured would be paid out. The policy would then cease. Alternatively, you may have a plan that could still have life cover in place after a critical illness diagnosis and/or allow you to claim for more than one such illness.

Depending on the type of plan, a life policy could pay-out the sum assured if you are diagnosed with a terminal illness and are given less than 12 months to live.

Should I get over 50s life insurance?

While everyone has different priorities and circumstances, if you’re looking to make sure your loved ones are financially secure after you pass away, then over 50s life insurance can help take some of the worry out of the future. 

• Applying is easy, and you’re guaranteed to be accepted without needing to disclose your medical history. 
• Your loved ones will receive a guaranteed cash payout to help cover any unexpected costs.
• Optional extras like added funeral care can help towards funeral expenses.

However, over 50s life insurance isn’t always needed; for example, if you have a lot of savings or know that you won’t pass on any existing debts. It’s also important to remember that life insurance plans can be expensive if you live for a long time, and you can’t get your money back once you’ve paid it in. 

Whatever your financial situation, weighing up the pros and cons will help you choose the right plan for you and your loved ones.

Be sure to read through our plan summary and terms and conditions. Remember that when you invest, your capital is at risk.