Over-50s life insurance: guaranteed acceptance and inflation erosion
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Over-50s plans guarantee acceptance without medical questions but premiums can exceed the sum assured if you live long enough. Compare with level-term cover if you are still healthy — and check whether payouts keep pace with inflation.
By Money Guide editorial team
Published:
Over-50s life insurance (whole-of-life with simplified underwriting) targets funeral costs and small legacies. Acceptance is guaranteed within age bands — typically 50 to 80 — with no medical exam.
The catch: premiums are usually payable for life. If you live 15–20 years, total premiums paid can exceed the fixed payout — unlike level-term cover that ends when the term ends.
Inflation erodes fixed payouts. A £3,000 funeral plan taken in 2010 may not cover 2026 costs. Increasing-benefit options exist but cost more from day one.
Payouts may be subject to a waiting period — often 12 or 24 months — during which only premiums are refunded on death. Accidental death may be covered fully from day one.
Writing policies in trust keeps payouts outside your estate for Inheritance Tax. Compare with prepaid funeral plans and level-term life cover. See our over-50s life insurance guide and life insurance basics.