Compare life insurance for over 50s

09 December 2022

If you’re over the age of 50 and you’re looking for protection for your family’s future finances, it’s easy to get confused by the various life insurance policies on offer. In this article, we want to dispel some life insurance myths and make it easier to compare over 50s life insurance policies.

Over 50s life insurance compared

There is more than one way to get insured in later years, and much depends on what sort of financial objectives you have in mind. Below, you can compare life insurance for the over 50s to help you decide which policy is right for you.

Over 50s Life Insurance

Perhaps most obviously, an over 50s life insurance policy is one option if you’re aged 50 to 80. Our Over 50s Fixed Life Insurance can be used to leave extra money for your loved ones after you pass away; for example, the funds could help settle unpaid bills, purchase a small gift, or be put towards the cost of a funeral. Some of the benefits include:

  • Guaranteed acceptance with no medical exam. Full cover payable after one year.
  • Fixed premiums, which means you can budget with certainty.
  • A cash sum, with 100% of claims paid in full.

Term life insurance 

Even if you’re aged over 50, you can still protect your loved ones with a ‘term life insurance’ policy. This is where a cash sum is payable to your family (following a valid claim) if you were to pass away during a defined policy term, such as 25 years. You can take out term life insurance as a single or joint life insurance policy.

Depending on your medical history and risk factors, you may be required to answer medical questions or undergo a medical exam as part of your application.

Your term policy can be taken out on a 'level term' or 'decreasing' basis, as we'll explain below.

Life Insurance

Life Insurance is a type of ‘level term’ policy, which means the premiums and the amount of cover stay the same throughout the policy term. Did you know you can take out Legal & General Life Insurance up to (and including) the age of 77? Compared to over 50s life insurance, here are the main benefits:

  • The payout is designed to protect larger outgoings, such as the mortgage, childcare or everyday expenses.
  • Premiums start from £5 a month depending on your circumstances.

Decreasing life insurance

If you’re still paying off a repayment mortgage in later life, you could consider taking out a Decreasing Life Insurance policy up to (and including) the age of 74. As with our Life Insurance, you decide how much cover you need over an agreed policy term and premiums start from £5 a month. But in this instance, the cash sum is designed to help you protect a repayment mortgage, so the amount of cover roughly reduces in line with the way your mortgage decreases.

Terminal Illness Cover is automatically included with all Legal & General Life Insurance and Decreasing Life Insurance cover policies with a term of at least two years. A payout can be made when the policyholder’s life expectancy is less than 12 months.

How do other protection policies for over 50s compare?

Of course, there are other types of protection that you can consider beyond the age of 50 if you have different protection needs.

Critical Illness Cover can be added when taking out a Life Insurance or Decreasing Life Insurance policy at an additional cost, up to and including the age of 67. With our Critical Illness Cover, you can receive a cash sum if you’re diagnosed with, or undergo a medical procedure, for one of the specified critical illnesses that we cover during the length of your policy, and you survive for 14 days from diagnosis.

If you’re looking for another type of cover, Illness and Injury Insurance is a straightforward income protection policy that can protect your salary if you’re incapacitated due to illness or injury. If you know how much cover you need, you can buy it directly from Legal & General without advice up until your 55th birthday. It is important to note that cover ends on your 60th birthday and other eligibility criteria apply.

Alternatively if you need advice or a wider range of policy options, you could take out Income Protection Benefit (which must be bought via an adviser) before your 60th birthday. Following a valid claim, this gives you a regular monthly benefit if you’re unable to work due to illness or injury. Income protection insurance is often said to be an important option for self-employed adults, but can also be applicable if you're employed – including people over 50 – so it’s worth considering this type of protection policy to the options we’ve already covered.

Remember, these policies are not savings plans and there is no payout unless a valid claim is made.

What to consider when comparing over 50s life insurance

Ultimately, no two life insurance applicants have exactly the same circumstances and priorities.  Here are some general questions you might want to ask yourself before deciding on which over 50s policy to pursue:

What is your health status and family medical history

  • We take this information into consideration if you apply for Life or Decreasing Life Insurance.  Our Over 50s Life Insurance is available without medical questions.  

How much cover do you require

  • With our Over 50s Life Insurance policies you can leave loved ones a cash gift.  If you need to financially protect loved ones, dependents or a mortgage, you can apply for more cover with Life Insurance or Decreasing Life Insurance.

How much can you realistically spend on your premiums?

  • These are long term protection policies, so you should always think about what you can afford now and in the future.  If you expect your income to change when you reach your planned retirement age, make sure premiums remain affordable.

How long do you need cover for?

  • With Over 50s Life Insurance, you stop paying premiums at age 90, but have the peace of mind that cover will be in place for life.  Life Insurance and Decreasing Life Insurance have upper age limits for the age at purchase and the age by which cover must end.   

How much would you want to spend on a burial or cremation?

  • Average funeral costs are £4,216 in 2022. Our Over 50s product can be used towards funeral costs. However, it isn’t designed to meet the full costs of a funeral and doesn’t guarantee to do so.

Find out more in our over 50s life insurance guides or our life insurance guides. And, if you’d like to work out how much life insurance cover you need, try our life insurance calculator.

Grandpa and grandkids on a day out