Are You Over 50 and Looking for Life Insurance?

Life insurance is often taken out by young families or couples with mortgage commitments, but there are plenty of policies designed specifically for people who are 50 or older – all the way up to 85 and beyond.

It works like any other type of life insurance - you pay an agreed monthly premium, and when you die your insurer pays a lump sum to whoever you named on your policy. The money can be used for your funeral costs, to pay off existing debts or simply as a gift for your loved ones.

Most insurers will accept you whatever your health situation and financial status, and you will not have to answer questions or pass any tests.

Most over-50s policies fix their premiums for the duration of the policy, with monthly payments of between around £10 and £50.

The majority of policies pay out a sum agreed at the outset, whether you die after three years or 30, with a typical maximum of around £25,000.

Insurers often waive premiums for those who live past a certain age – usually 90. You are still covered but you no longer have to make payments.

Over-50s life insurance is not an investment plan and has no cash-in value, and if you do not keep paying your premiums, it is worthless.

Most insurers insist you pay into your plan for a year or two before you qualify for the full payment. Under that, and you get your premiums back.

If you live for a long time it is possible to pay in more than you receive at the end – especially if you take a policy out at 50.