3 things to know before taking out over-50s life insurance

Over-50s life insurance policies now cost an average of £27.62 a month, according to insurer Reassured, based on more than 50,000 plans sold in 2024. 

But with fixed payouts and premiums that run for life, many people who live past 80 are likely to pay in more than their family eventually receives.

Here, Which? sets out three key things to know before taking out an over-50s policy, and the alternatives you could consider instead. 

What is over-50s life insurance?

Over-50s life insurance is a product that promises a lump sum when you die. Provided you don't miss any premiums, it's guaranteed to pay out. 

One factor that often appeals is that it's not medically underwritten, which means any pre-existing health conditions won't affect the cost. The main things you'll be asked about – and that will affect your premiums – are your age, your smoking status and the level of cover you want.  

• Find out more: best life insurance in the UK

3 things to know about over-50s life insurance

Here’s what to be aware of: 

1. You could pay more in than the policy pays out

Monthly premiums might seem affordable, but the payout is fixed and you must keep paying until you die. 

If you live into your 80s or beyond, you could pay in far more than your family ever receives – meaning even putting the same amount aside in a basic savings account could leave you better off. 

2. It's not medically underwritten

Over-50s policies don't take your health or lifestyle into account, so you will pay roughly the same as someone in poor health. 

That might sound fair, but it means healthy people end up paying more than they need to, compared with standard medically underwritten life insurance, which is often cheaper for those in reasonable health.

3. You won't get anything back if you stop paying 

These plans have no cash-in value. If you miss payments or cancel your policy, you won't get any money back. And because the payout is fixed, inflation will steadily reduce its real value over time.

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Is over-50s life insurance worth getting?

Usually not. If you live to an average age, you’ll almost certainly pay more in premiums than your policy will ever pay out. For most people in good health, a standard life-insurance policy will be cheaper and give you better protection.

The one time an over-50s plan might make sense is if you have serious health problems that would make you ineligible or very expensive to insure elsewhere. Because these plans don’t involve any medical questions, they can still guarantee a small payout to help with funeral costs or debts.

But you should go in with your eyes open - the payout is fixed, the cover is limited, and if you stop paying you lose everything.

• Find out more: Over-50s life insurance: is it worth getting?

What are the alternatives?

If you want life cover in your 50s, there are usually better-value options than an over-50s plan, especially if you’re in reasonable health.

1. Standard life insurance

This type of policy is medically underwritten, which means your health, age and lifestyle are considered when setting the premium. For most people, that makes it cheaper and more flexible than an over-50s plan.

You can choose:

• Whole-of-life cover, which pays out whenever you die, as long as you keep paying premiums. Some policies stop taking money when you reach 90.
• Term insurance, which covers you for a set number of years and only pays .out if you die during that period. If you need cover for a mortgage dependants, term life insurance is usually the best fit.

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2. Consider a regular savings account

If you don't need a standard life insurance policy but want to have a lump sum for funeral expenses or for your family, consider a savings account.

Although bank accounts are frozen upon death, banks typically release funds with an itemised bill and a death certificate. If this isn’t timely, families may pay upfront and be reimbursed after probate.

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3. Prepaid funeral plans

If you specifically want to cover funeral expenses, a regulated prepaid funeral plan may be a better choice. These let you pay upfront or in instalments, and the cost of your funeral is fixed at today’s prices, protecting against inflation.

• Find out more: prepaid funeral plans 

4. Other ways to support your family

If you’re thinking about leaving a financial gift, consider tax-efficient options such as a Junior Isa, or make use of annual gifting allowances to reduce inheritance tax.

• Find out more: ways to avoid inheritance tax