30 Jan 2024

Is over 50s life insurance worth it?

There is lots of debate about whether over 50s life insurance is worth it. If you’ve paid off the mortgage and your kids have left home, do you really need to get cover once you reach a certain age? In this guide, we’ll look to separate the fact from the fiction, and hopefully put your mind at rest. As we’ll explain, in some circumstances over 50s life insurance is definitely worth considering.

Grandfather and grandchild on shoulders

Find out more about Over 50 Life Insurance

Over 50s life insurance is designed for UK residents aged 50 and 80. So long as you pay monthly premiums when due, the policy pays out a cash sum, referred to as a 'payout' or 'sum assured’ which could be used to help settle unpaid bills, as a gift or to help towards the cost of a funeral.

With our Over 50s Fixed Life Insurance you choose a premium you can afford to give you a cash sum that meets your needs. Your chosen cover is payable after one year, however if you pass away within the first year, we will refund you any premiums you have paid. If you die as a result of an accident then we'll pay you the cash sum. See our tips for buying over 50s life insurance for more information.

When a claim is paid on a policy, you can leave the cash sum as a gift, and the money can be put towards anything from funeral costs and unpaid bills to a small gift for family. When the cash sum is paid out, it becomes part of your estate unless you use our trust service to.  

First, let’s look at the benefits of Legal & General’s Over 50s Fixed Life Insurance.

Pros of over 50s life insurance

  • 100% of Over 50s Fixed Life Insurance policy claims are paid.
  • Acceptance is guaranteed if you’re a UK resident aged 50-80.
  • You can get this type of life insurance with no medical required.
  • Your premiums are fixed and won’t increase after you’ve taken out a policy.
  • You can have more than one policy so long as the cash sum value across your over 50s plan doesn’t exceed £10,000.

But are there are any drawbacks when taking out over 50s life insurance? Here are some factors to consider when deciding whether over 50s life insurance is worth it.

Cons of over 50s life insurance

  • You will need to wait a year until your policy can pay out. However, if you pass away during this period, all premiums that have been paid will be refunded.
  • If you’re looking for more substantial life cover, you may prefer a ‘term life insurance’ policy. In contrast to term life insurance or 'mortgage life insurance', an over 50s life insurance policy is designed to meet more modest costs, such as money towards a small gift or towards some funeral expenses.
  • The total amount you pay in premiums may exceed the cash sum payable on death. And if you reduce your premiums, your cash sum will also decrease.
  • Since the cash sum is fixed, its value is likely to decrease in relative terms over time due to inflation.

There are certain circumstances where getting over 50s life insurance is something you might want to consider. For example:

  • You want to put some money towards your funeral costs.
  • You want to contribute towards paying off outstanding debts when you pass away.
  • You want to leave a small gift for your loved ones.
  • You don’t already have life insurance that covers you for the rest of your life and this type of cover could benefit you.

If any of the above apply to you, taking out a policy could help you meet those needs.

There are some circumstances where you might decide over 50s life insurance is not worth it. For example, if you already have sufficient savings that your family can draw upon after your death, you may decide against taking out an over 50s policy.

Similarly, you may have a to cover your funeral costs, or perhaps intend on having a low-cost funeral that can be easily funded.

We’ve explored how over 50s life insurance provides financial protection in later life, but of course, it’s not the only type of life insurance. There are different types of life insurance, but the main one is term life insurance. This could pay out a sum of money if you were to pass away while covered by the plan. We explore some of the ways in which life insurance differs from over 50s life insurance in the table below.

Even in your 50s, 60s and 70s, you may still be eligible for a term life insurance policy, which gives financial cover for a defined ‘term’ that you choose. Below is a snapshot of how over 50s life insurance and term life insurance compare during the life of your policy, and when a cash sum is paid after a valid claim.

Over 50s life insurance Term life insurance
Apply from age 50-80 Apply before age 77
Guaranteed acceptance No guaranteed acceptance
No health questions Health and lifestyle is considered
No minimum policy length Minimum policy length is one year
Cover lasts until the end of your life Policy must end before age 90
Cash sum designed for smaller expenses (including a funeral) Cash sum can pay for larger expenses (like a mortgage)
Potential payout could be lower Potential payout could be higher
Minimum premium from £5 a month Minimum premium from £5 a month

Whichever life insurance policy you choose may depend on your health, financial circumstances and needs.

It’s also important to know that life insurance is not a savings or investment product, and there is no cash value unless a valid claim is made. If you were to stop paying your premiums when due, your plan would be cancelled and you wouldn't get anything back. If you choose to use the money from your over 50s policy to pay for your funeral, it might not cover the full amount.

Read more on the benefits of over 50s life insurance versus term life insurance.

Every life insurance applicant over 50 has different circumstances and needs, but if you’re looking for a modest cash sum to leave your loved ones, and if getting life insurance without a medical is important to you, over 50s life insurance is something you could consider.

Here's some reasons to choose Legal & General

Over 50s Fixed Life Insurance

  • Guaranteed acceptance if you’re a UK resident aged 50-80, with no medical required.
  • Premiums from £5 per month depending on age – that’s £1.15 a week.
  • Fixed premiums – they’ll never go up and your cover won’t go down.
  • Full cover after just one year – immediate cover for accidental death. T&C's apply
  • 100% of claims paid – most in 1 day.
  • 5 Star Defaqto rated cover – the highest rating possible!
  • Wellbeing Support. The wellbeing of our customers is extremely important to us and that’s where Wellbeing Support comes in. We’ve partnered with RedArc Assured Limited, whose registered nurses can provide you with a wide range of wellbeing services. Find out more about Wellbeing Support
  • Care Concierge. Free access to our team of Care Experts, this confidential and impartial telephone advisory service can help you or loved ones understand and find later life care. Find out more about Care Concierge.
  • Peace of mind for you and your family. Read about our claimants’ positive claims experiences.

Find out more about our Over 50 Life Insurance

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