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Over 50s life insurance explained

While no one likes to think about their own death, preparing for it financially and helping secure some financial help for your family when you're gone is important. That's where over 50s life insurance comes in. Over 50s life insurance policies are specifically designed for older people to ensure their loved ones receive financial support and something left behind when you're gone.

What type of life insurance is available?

There are many different kinds of over 50s life insurance available; policies will differ depending on the provider you choose, but the most popular types of over 50s life insurance are:

Level term insurance

Level term over 50s life insurance provides insurance for a set number of years with premiums paid monthly (annual in rare cases) and a payment available upon the policy holder's death. The payment is agreement and assured upon the policy holder's death, with agreed premiums that shouldn't changed. However, when the policy expires if the policy holder is still alive there won't be a payout.

Decreasing term insurance

A decreasing term policy is the cheapest form of life insurance available, with the assured sum decreasing over the period of the policy, normally tied to mortgage rates. In the same way as a level term policy, no payment is paid if the policy expires and the policy holder is still alive.

Increasing term insurance policy

This is the same as a decreasing term insurance policy, but the payout increases over the duration until the policy's end, again fixed by rates or set percentages, such as the retail index price.

Whole of life insurance

Whole of life over 50s insurance is guaranteed to make a payout no matter how long the policy holder lives, with set payouts and premiums staying the same for at least ten years of the policy.

Renewable term insurance

This over 50s life insurance policy has a new, renewable rate at the end of each term. However, no medical examination is required; premiums and payouts normally increase due to age rather than health.

What other options are available?

If you're looking for something more than over 50s life insurance protection, or your circumstances might not meet the criteria for over 50s life insurance, you still have other options available.

Critical illness

Critical illness is a form of life insurance with a guaranteed payout when a diagnosis is made on any type of critical illness; however, some companies are very specific about which critical illness they will pay out for.

Premium waiver

You also have the option to apply for a waiver of premiums if you are out of work or ill and cannot meet the payments for your life insurance and may risk losing the policy.

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