What is an 50's Life Insurance Policy?

The main benefit of an over 50's life insurance is that you are guaranteed the cover even if you have an underlying medical condition.

With an over 50s plan there are no medical questions and you do not have to have a medical to have the cover.

But just how much does that guarantee cost you in terms of the amount of cover you will receive.

As a result of this guarantee the amount of cover you will receive when compared to a whole of life insurance plan may be significantly lower.

If you are male or female and 60 years old and a non smoker you will receive a sum assured of £5161 for a £20 per month premium on a over 50's plan. With a whole of life insurance you could receive a benefit of £15269 with Pruprotect for the same premium, if you have no underlying health issues.

Now if you are 65 then for £20.00 you would receive a sum assured of £3579 and with a Whole of Life insurance with Zurich you would have a benefit of £7515.

When we go to age 70 the amount of over 50's cover you would receive would £2334 for a £20.00 premium. Compare this with a Legal & General Whole of life insurance for £20 per month that would offer you cover of £5308.

Even for an 80 year old a Whole of life insurance can offer higher cover for the same premium. With a typical over 50's plan offering cover of £1040 for a £20 per month premium, compared to Legal & General offering £3746.

So it would appear that unless you have an underlying medical condition that could effect the cost of a whole of life insurance. An over 50's plan may not be as beneficial as it might seem, coupled with the fact that most over 50's providers do not pay out the sum assured in the first 2 years.

WOL versus Over 50's Comparison Table

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Age Over 50's WOL
60 £5161 £15269
65 £3579 £7515
70 £2334 £5308
80 £1040 £3746

Figures correct as of the 22/06/2013, source of quotes webline and Engage Mutual Assurance.

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