Is over-50s life insurance better than term insurance?
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In short: Term life insurance usually offers much higher cover per pound of premium for healthy under-70s who pass medical underwriting. Over-50s guaranteed acceptance suits people who cannot get standard cover — smokers with conditions, or those who want small funeral pots without medical exams — but total premiums often exceed the payout if you live many years.
Last reviewed:
Reviewed by Kaiser Khan
A healthy 55-year-old might get £200,000 term cover for £15–£25 monthly over 20 years. Over-50s plans might offer £5,000 for similar monthly cost with no medical — different products for different needs.
Term insurance expires at end of term with no payout if you survive — pure protection for mortgage or dependents. Over-50s whole-of-life pays whenever you die eventually, funding funeral costs or small legacies.
Review whether you already have cover via employer death-in-service or existing whole-of-life before stacking over-50s plans.
Model break-even: if premiums total more than the cash sum after 15 years, you are effectively self-funding. See over-50s life insurance explained for comparison tables.
Primary source: abi.org.uk/products-and-issues/topics-and-issues/life-insurance
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