Arranging life insurance for over 50s in the UK is possible for most people, including those with health conditions. The options available, the cost of premiums, and the way insurers approach underwriting all change with age. Understanding the different types of cover can help people make a more informed comparison.
This article sets out the main options available to people over 50 in the UK. It is general information only and does not constitute financial advice.
Types of Life Insurance Available for Over 50s in the UK
There are three main categories of life insurance that are typically available to people aged 50 and over:
- Term life insurance: provides a fixed payout if the policyholder dies within the policy term. Available to most applicants in reasonable health, subject to medical underwriting, typically up to age 70 to 75 depending on the insurer.
- Guaranteed acceptance over 50s plans: no medical questions required. Available to applicants typically aged 50 to 85. The sum assured is generally lower than for underwritten policies and premiums are relatively high in proportion to the payout.
- Whole of life insurance: no fixed expiry date. Pays out whenever the policyholder dies. Available through some insurers with underwriting, and as a guaranteed acceptance product without medical questions.
How No Medical Life Insurance for Over 50s Works
Guaranteed acceptance plans for over 50s do not require the applicant to answer any medical questions or undergo any health assessment. Acceptance is guaranteed for applicants within the eligible age range, regardless of health status.
Because the insurer accepts all applicants without medical information, premiums are priced to reflect the higher risk across the pool of policyholders. This means that guaranteed acceptance plans are generally more expensive per pound of cover than equivalent underwritten policies.
Most guaranteed acceptance plans also include a waiting period, typically one to two years, during which the full sum assured is not paid in the event of death from illness. During this period, the payout on a non-accidental death claim is usually a return of premiums paid rather than the full sum assured.
What the Total Cost Can Look Like
A point that is worth understanding when considering any guaranteed acceptance plan is the relationship between total premiums paid and the fixed sum assured. The Financial Conduct Authority's consumer guidance on life insurance notes that consumers should consider the total projected cost of a policy relative to the guaranteed payout before committing. For someone who lives to an advanced age, total premiums paid may exceed the sum assured.
Term Life Insurance After 50: What Underwriting Involves
Standard term life insurance for applicants over 50 involves medical underwriting. This means the applicant answers health questions and the insurer assesses the risk before deciding whether to offer cover and on what terms. Most applicants with well-managed health conditions can obtain cover, though premiums increase with age.
The maximum term available reduces as the applicant gets older, because most insurers will not extend cover past a certain age, typically 75 to 80. A 60-year-old applicant might access a maximum term of 15 to 20 years depending on the insurer.
Key Points to Check When Comparing Policies
When comparing life insurance options for over 50s, the following are relevant points to review in the policy documentation:
- Whether premiums are fixed for the duration of the policy or subject to review
- The terms of any waiting period and what is paid during that period
- Whether total projected premiums over the expected policy duration exceed the sum assured
- Any exclusions that apply, including any conditions or causes of death that are not covered
- The maximum age to which cover continues
The Association of British Insurers publishes consumer guidance on comparing life insurance products.
Writing a Policy in Trust
Regardless of the type of policy, a life insurance policy can be written in trust. This means the payout goes to the trust rather than forming part of the policyholder's estate. Assets held in trust do not pass through probate and may have different inheritance tax treatment depending on the type of trust and individual circumstances. HMRC provides information on trusts and their tax treatment. The suitability of a trust arrangement depends on individual circumstances and legal advice should be sought where relevant.
Frequently Asked Questions
Q: Is there a maximum age for applying for life insurance in the UK?
Most underwritten term life insurance policies have a maximum entry age of 70 to 75 depending on the insurer. Guaranteed acceptance over 50s plans are available up to age 85 in most cases. Entry age limits vary by product and provider. The policy documentation will confirm the entry age range.
Q: What happens if I was previously declined for life insurance?
A decline from one insurer does not automatically mean other insurers will reach the same conclusion. Underwriting criteria differ between providers. It is also worth noting that a health condition may have changed since a previous application, which can affect the outcome of a new assessment. Each application is assessed individually.
Tanweer Hussain is the editor at TopQuote, an independent life insurance broker and appointed representative of The Openwork Partnership with over 20 years of experience. He oversees the accuracy of all published content, including the factual and regulatory detail that matters most on claims-related topics. All content on this page has been reviewed for FCA compliance.